Archived publication
This publication is no longer current or has been superseded.
Vote Climate Change and Energy Efficiency: Output Class: Policy Advice - Climate Change
This output class covers policy advice from the Ministry for the Environment on climate change issues.
Performance measures
Outputs in this class were provided within the appropriated sum and within the timeframes as specified in the Estimates (unless otherwise stated). Performance measures were specified for each output as appropriate.
Drafting instructions were completed subject to timeframes set in the Government's Legislative Programme.
All outputs were delivered to the Ministers' specifications. Orders in Council and regulations were intra vires and in accordance with principal statutes.
Resources employed
|
Actual |
Actual |
Main estimates |
Supplementary estimates |
|
|---|---|---|---|---|
|
Revenue: |
||||
|
0 |
Crown |
7,124 |
7,124 |
7,124 |
|
0 |
Total revenue |
7,124 |
7,124 |
7,124 |
|
0 |
Total expenses |
7,107 |
7,124 |
7,124 |
|
0 |
Net surplus |
17 |
0 |
0 |
Service performance
The 2003/04 Estimates contain one output in Output Class: Policy Advice: Climate Change.
Review of output achievements
Lead the whole of government team to implement government climate change policy
Achieved. The New Zealand Climate Change Office is now fully operational and part of Ministry for the Environment. It works in a whole of government way with officials from Treasury, the Ministry of Economic Development, the Ministry of Agriculture and Forestry, the Ministry of Foreign Affairs and Trade, the Department of Prime Minister and Cabinet, the Ministry of Transport, the Energy Efficiency and Conservation Authority, Te Puni Kokiri and the Ministry of Research, Science and Technology.
Develop and implement price-based measures including Negotiated Greenhouse Agreements and a projects mechanism to reduce greenhouse gas emissions
Ongoing. The framework and guidelines for Negotiated Greenhouse Agreements were finalised and implemented resulting in 12 firms applying for priority negotiations. These firms represent approximately 55% of electricity used by New Zealand industries. To date, six negotiations have begun.
Projects to Reduce Emissions including early projects and the first tender round were completed resulting in:
- the development of Meridian's Te Apiti wind farm and the extension of Trustpower's Tararua wind farm being granted emissions units
- first round tender resulted in 46 tenders seeking 15 million emission units being received for the four million emission units on offer. The 15 successful projects include 13 electricity and two non-electricity projects such as wind farms, cogeneration, bioenergy, landfill gas, small hydro, geothermal existing hydro enhancements and industrial heat plants.
If implemented, all these projects could achieve up to 365 mega watts of additional electricity generation capacity. This is equivalent to approximately two years of growth in electricity demand and including biomass for co-generation represents approximately 5.4 petajoules (PJ) per annum of renewable energy (just below one-fifth of the 30 PJ renewable energy target under the National Energy Efficiency and Conservation Strategy).
Make significant progress towards the implementation of an emissions charge for carbon intensive activities
Ongoing. The primary purpose of the emissions charge is to change the relative prices of carbon intensive activities. The emissions charge is being developed to apply to products which, when consumed, result in the release of greenhouse gases to the atmosphere. In practice, this relates mainly to the use of fossil fuels and emissions from industrial processes.
Considerable progress has been made on the implementation of the emissions charge. A working draft discussion paper was provided to Ministers in December 2003, and work has continued into 2004.
Approaches to revenue recycling, an important component of the emissions charge policy, are under development so that proposals can be considered by Government in conjunction with the emissions charge design.
Establish and manage a range of programmes for working with the agriculture and forestry sectors, local government and small to medium sized enterprises
Agriculture and forestry sectors
Achieved. The Forestry Industry Framework Agreement (FIFA) has been drafted. The proposed agreement contains policies and programmes relating to transport, bio-energy, forest management and health, labour and skills and market access. Budget bids have been made to fund these initiatives and further consultation with the industry will occur before budget announcements are made.
The Agricultural Research Memorandum of Understanding was signed with 11 key agricultural sector participants. The Memorandum of Understanding implements an agricultural research strategy for methane and nitrous oxide gases and provides for industry funding totalling $4.7 million. Significant input from the agriculture sector and other government departments was required to successfully negotiate the Memorandum of Understanding. The proposed agriculture research levy was withdrawn on signature of the Memorandum of Understanding.
Local Government
Achieved. The Communities for Climate Protection New Zealand programme, a three year greenhouse gas reduction programme for local government, was developed and launched. Through the programme, participating councils take a multi-step approach to reducing emissions by developing emissions inventories, setting targets for reductions, agreeing action plans to achieve these, and ongoing monitoring against targets. Action to reduce emissions can be taken by participating councils on a number of fronts including: waste management, sustainable transport, urban design, air quality, energy efficiency and sustainable land use and planning. This supports wider Ministry for the Environment programmes and objectives.
A Sulphur Hexafluoride (SF6) Memorandum of Understanding was drafted and signed by Industry and the Crown. The Memorandum of Understanding requires industry to adopt best practices that minimise SF6 emissions when installing, maintaining and retiring equipment. In exchange, the industry will be exempt from the emissions charge for these gases. In addition, work is progressing with the refrigeration and air conditioning industries to reduce hydrofluorocarbon and perfluorocarbon emissions.
We also developed, launched and disseminated of a 'toolbox' of information and guidance materials for local government to help local government play its full part in identifying and preparing for the effects of climate change.
Small and Medium Sized Enterprises (SMEs)
Achieved. A policy for small and medium enterprises and a programme to improve energy efficiency was developed. Under the proposed programme, the Energy Efficiency and Conservation Authority (EECA) would provide energy information services to SMEs. The New Zealand Climate Change Office and EECA would fund and co-ordinate energy use appraisals/audits in target industries selected on the basis of energy intensity. Industry guidelines on energy efficiency would be produced and disseminated during 2004/05.
A workshop on the Kyoto Clean Development Mechanism and business opportunities arising under this was held for businesses in Wellington in April 2004. The Business Opportunities Programme contributes to the National Energy Efficiency Conservation Strategy (NEECS) targets for energy efficiency and renewable energy through the work to establish a national focal point for the Kyoto Clean Development Mechanism and promotes opportunities for businesses to participate in emissions reduction projects under this scheme.
Provide climate change information programmes
Achieved. In 2002 the Government agreed to a public awareness and education programme to improve New Zealanders' understanding of environmental issues relating to climate change and to bring about changes in behaviours that will help reduce greenhouse gas emissions. The public education and awareness campaign has been designed in three phases, with the first phase focusing on reaching out to the public and raising awareness. Phase one of the campaign, 4million careful owners, was launched on 28 December 2003 and concluded at the end of February 2004.
Co-ordinate New Zealand's involvement in international scientific and technological fora; prepare New Zealand's National Inventory; and contribute to expanding New Zealanders' understanding of the impacts of climate change
Achieved. The New Zealand National Inventory Report for the year 2002 was submitted to the United Nations Framework Convention on Climate Change (UNFCCC) secretariat on time (15 April 2004). The data in the report shows that overall emissions increased by 21.6% since 1990, and by 1.8% from 2001 to 2002.
A process was established to provide an annual update of New Zealand's net emissions position (15 May 2004). This update shows New Zealand has an estimated surplus of 33 million tonnes of carbon dioxide equivalent.
The New Zealand Climate Change Office (NZCCO) has increased its capacity for review of parties greenhouse gas inventories with one staff member passing UNFCCC review examinations.
The NZCCO provides the national focal point for the Intergovernmental Panel on Climate Change (IPCC). During the year officials have maintained engagement with IPCC activities, including participating in Bureau meetings and plenary sessions of the Panel, and co-ordinating two government reviews of the IPCC good practice guidance for land use, land-use change and forestry, fundamental to managing the value of New Zealand's carbon credits.
Officials were engaged in the process of nominating New Zealand authors for the IPCC 4th Assessment Report and for the revision of the IPCC Greenhouse Gas Inventory Methodology guidelines. The IPCC conducts regular assessments of climate change science across all disciplines and the 4th Assessment Report will provide the science context for future climate change negotiations and New Zealand participation ensures southern hemisphere issues are factored in.
New Zealand has also made a contribution to global observing systems and governance structures for the Global Climate Observing System (GCOS) and the Earth Observation System (EOS) fundamental to the provision of satellite imagery for New Zealand's Carbon Accounting System (NZCAS). NZCCO initiated the task of securing a whole of government purchase agreement for satellite imagery for tracking land-use change.
Other science input has included the initiation of adaptation guidance for local government, progressing work to understand the economic impacts (including insurance aspects) of extreme climate events in partnership with local government, developing public interest information on regional impacts of climate change, and climate change impacts guidance for East Coast farmers.
Ensure New Zealand's view is well articulated in appropriate multilateral and bi-lateral meetings including the United Nations Framework Convention on Climate Change (UNFCCC), Intergovernmental Panel on Climate Change, Organisation for Economic Co-operation and Development, partnerships and other key meetings
Ongoing. Officials have continued to monitor international developments that affect the Kyoto Protocol coming into force. International climate change partnerships have been formed with the Governments of Australia and United States of America resulting in the commencement of over 30 inter-governmental projects.
