The politics of climate change

Page - October 31, 2007
This year has seen New Zealand’s political leaders tripping over themselves to show they care about climate change. Prime Minister Helen Clark touts a "carbon neutral" future for the country, while National leader John Key insists he and his party take the issue seriously. After years of having their heads well and truly in the sand, it seems our politicians have finally woken up to the threat. Yet we’re still at the stage of warm words, with a conspicuous lack of action.

all sizzle no sausage

Prior to September, neither party had any policy in place that would actually have made any credible difference. And we desperately need something. Because despite our clean green image, New Zealand ranks ninth worst for increasing emissions among the developed countries signed up to the Kyoto Protocol and our greenhouse gas emissions per capita are in the top 12 countries worldwide. With such a wealth of renewable energy options open to us, and plenty of other opportunities to reduce our emissions, New Zealand should be tracking much better when it comes to our environmental impact.

And when it comes to other international issues, we tend to punch well above our weight, given the size and economic clout of our country. We're in a good position to be at the forefront of global efforts to tackle climate change, and we should be leading by example. If we expect other countries to make the cuts in greenhouse gas emissions needed to address climate change, we first need change in our own back yard.

ALL SIZZLE NO SAUSAGE

In mid August we took our message about the need for more action to parliament, and hosted an "All Sizzle No Sausage' BBQ on the lawn outside the Beehive, complete with Helen Clark and John Key-embossed aprons and napkins. The aim was to highlight the difference between political rhetoric on climate change and substantial solutions to the problem. We also erected a billboard in central Wellington with the words 'Climate change waits for no politician.  We need real action NOW". Our aim was to make it clear that both major parties had set inadequate goals which sounded good, but would achieve little. The BBQ was a great success, with both the Climate Change Minister David Parker, and National's Environment Spokesman Nick Smith making an appearance and doing their best to defend their party's record.

SO WHAT’S THE CURRENT GOVERNMENT DOING?

The Labour-led government has recently announced a number of climate-related policies; the main one being its emissions trading scheme. In a nutshell, the scheme attaches a cost to carbon emissions, so that over time, all emitters will have to pay for their polluting activities. One trading permit will cover one tonne of carbon emitted. At the moment, the Government is envisaging that about 200 large emitters will initially fall under the scheme, but every business will be exposed to the price on carbon in some way, be it through air travel, vehicle and energy costs etc. The hope is that large emitters won't WANT to pay extra to emit greenhouse gases, so will take measures to reduce emissions. But this is by no means a given. Read on….

That the government has announced a scheme at all is great news.  A price on greenhouse gas emissions is a crucial element of any climate policy package and is a step in the right direction. And the very existence of the scheme, and a price on carbon, sends a signal to people that we can't continue as we have been, with little regard for environmental costs.

But the scheme itself suffers severe shortcomings. It's not coupled with an overall emissions reduction target for New Zealand, meaning there's no guarantee it will actually lead to the emission reductions we need. At workshops around the country to explain the ETS, government officials have been surprisingly frank about the fact that the scheme's objective is NOT to reduce New Zealand's emissions, but to "meet our international obligations". There is no reason an emissions trading scheme couldn't do both, but this would require bold action from the government, rather than the softly softly approach it has elected to take.

Also, despite the fact that it's responsible for almost half of all New Zealand's emissions, agriculture is exempted from the scheme until 2013. Leading scientists agree we have at most eight years to act to avoid catastrophic climate change; in terms of agriculture, the government has just agreed to waste five of them. Meanwhile the late entry of the agriculture sector is in effect a massive subsidy because the taxpayer must pay the financial cost of agricultural emissions via penalties under the Kyoto Protocol. Even when agriculture IS introduced in five years time, the sector will be heavily assisted because the government will give it most of its permits for free. The number of free permits allocated to the sector will drop with each ensuing year, but for those first few years, the government's chosen allocation method equates to yet another subsidy.

The agriculture sector argues the only way for it to reduce its emissions is to reduce production. No true. One third of agriculture's emissions come from nitrous oxide from fertilizers and solutions to this problem already exist. As for the remaining emissions from methane, the sector needs to focus on research and development of techniques to reduce these. It's pretty simple really - agriculture must start taking responsibility for reducing its emissions and where it can't, it should pay, like everyone else.

To be effective and fair, all sectors and greenhouse gases should be included in the ETS from the outset, polluting industries must not be subsidised with free permits to pollute and emission permits should be auctioned and the revenue generated invested in equipping New Zealand to more effectively address climate change.

The Government also recently released its Energy Strategy and Energy Efficiency and Conservation Strategy. Both are a step in the right direction and contain some very commendable goals, such as 90 per cent of New Zealand's electricity from renewable energy sources by 2025 and the halving of domestic transport emissions per capita by 2040. The strategies and goals show the Government has moved a long way towards the Greenpeace vision of using clean energy to tackle climate change. But what we're missing are details about how these goals will be achieved. We look forward to seeing them.

WHERE DOES NATIONAL STAND?

The National Party claims to take climate change seriously, and it is publicly backing the ETS. Also to its credit it has set an overall emissions reduction target, which is more than can be said for Labour. It has pledged to achieve a 50% reduction in carbon equivalent net emissions, as compared to 1990 levels, by 2050. Unfortunately this target won't go anywhere near what's needed to fix the problem - the target is set too low to avoid dangerous levels of climate change and to date we're yet to see a plan from National on how the target would actually be reached. In order to avoid dangerous levels of climate change, the New Zealand and other developed countries need to achieve at least a 30% reduction in our greenhouse gas emissions by 2020 and an 80-90% reduction by 2050 from 1990 levels.

Furthermore, John Key's (and indeed the National Party's) opposition to Kyoto is well known, and he recently sided with John Howard and George Bush over climate change and the Protocol. Bush and Howard are serial climate change deniers who've fought tooth and nail to avoid taking any responsibility or signing up to Kyoto.

Make no mistake - Kyoto is absolutely essential if we're to tackle climate change on a global scale. It's not perfect, but it's the best tool we've got and it must be strengthened not undermined.

WHAT NEXT? WHAT NEEDS TO HAPPEN NOW?

In December, governments from across the world will gather in Bali to start determining what the Kyoto Protocol will look like post-2012 (when the first commitment period ends). These international climate talks will be crucial. They will shape the ambition, content, process and timetable for the negotiation of the next stage of Kyoto, including the setting of mandatory global emission reduction targets.

These targets will make or break New Zealand's Emissions Trading Scheme. If they're strong, then the global price of greenhouse gas emissions (ie- the price that everyone who's signed up to Kyoto is paying for what they pollute) will reflect that. If the price to pollute is high, this will incentivise investment in cleaner energy generation, transport fuels and agricultural practices that are included in the New Zealand scheme.  It is this redirection of investment that will bring about actual emissions reductions within New Zealand.. If the price is not sufficiently high, then it will be cheaper for the polluters to continue to pollute than to change their practices. In which case the scheme will have failed to achieve emissions reductions within New Zealand.

The New Zealand Government must set these targets firmly at home, then push for the same level of commitment from other countries at Bali.