Protecting People and the Environment

1 Introduction

2 Responsibilities of the Minister for the Environment

3 About the Ministry for the Environment

4 Sustainable Development

5 Framework for Environmental Protection

6 Conclusion

7 Issues that the Minister will Need to Consider in the First Month of Office

4 Sustainable Development

Sustainable development is the context for all of the Ministry's work. Sustainable development is 'development which meets the needs of the present generation without compromising the ability of future generations to meet their own needs'.

The connections between environment and economy and environment and society are central to the activities of the Ministry for the Environment, though our primary focus is to protect and enhance the environment.

The last decade has seen a move away from treating environmental policy aims alongside, but separately from, social, economic and cultural aims and towards integrating them as part of a sustainable development framework.

This evolution has been made possible, in significant part, by successful efforts to address obvious and immediate threats to key natural resources. Initiatives such as new air quality standards, improvements in sewage and stormwater systems, closure of sub-standard landfills, and clean-up of priority contaminated sites are leading to measurable improvements in the quality of air, land and water resources.

Access to natural resources, water quality, urban issues and climate change are major sustainable development issues for New Zealand in the early years of the 21st century.

There is tension between those who seek access to natural resources for infrastructure development, irrigation and other human uses and those who want to protect biodiversity and natural landscapes. There are also tensions between people's desire for a secure supply of electricity, a good roading network and other community facilities, and their unwillingness to have power plants, transmission lines, motorways or landfills near their homes.

The Resource Management Act 1991 provides for public participation when communities, through their regional, city or district council, are making decisions about resource consents for such facilities.

Environment and society

Environmental policy has a key role to play in the health and well-being of New Zealanders. Clean air and water, and protection from toxic substances and pollution, are vital to people's health. Our quality of life is closely connected with the effective functioning of our cities, towns and communities.

Urban issues

New Zealand is an urbanised country, with 86% of our population living in urban areas and one in three New Zealanders living in Auckland. Our cities have the potential to offer a high quality of life, liveability and other key benefits that will help New Zealand to retain and attract the skilled people we need. Cities, therefore, are essential places to strengthen quality of life and sustainable development.

Many of our towns and cities are grappling with issues such as how to maintain infrastructure, improve air quality, facilitate more affordable housing, improve social inclusion, maintain the vitality of city centres, reduce urban sprawl and deal with traffic congestion. An ageing population, immigration growth and high levels of international visitors increase the pressure on towns and cities - including air and water quality, transport and sewerage systems - and consequently on quality of life.

Urban areas are where both the positive and negative effects of people, our lifestyles and our economy are most concentrated. Towns and cities need energy, water, food and materials to function and they produce significant waste products.

Growth in and around our towns and cities requires new infrastructure to support it. Even in places where there is little or no growth, significant expenditure is necessary to maintain and replace existing infrastructure networks.

A key need is to improve the integration of infrastructure provision, both across central government and with long-term strategic planning processes in local government. Better linkages between transport and urban form are needed.

The Ministry leads the Sustainable Cities workstream of the Sustainable Development Programme of Action and is making progress in setting priorities for urban affairs work. The outcome we want is towns and cities that function well, and that are healthy and attractive for business, social and cultural life.

The work programme is being tackled at two levels:

• national - under the Urban Affairs portfolio, through activities such as the New Zealand Urban Design Protocol
• regional - through the Auckland Sustainable Cities Programme.

The New Zealand Urban Design Protocol, launched in 2005, calls for a significant step up in the quality of urban design in New Zealand and a change in the way we think about our towns and cities. A commitment to implement the Protocol and improve the quality of the built environment has been made by 100 organisations, including government departments, local councils, developers, investors and professional organisations.

Air quality

New Zealand has relatively good air quality. However, there are some areas (mostly urban) where concentrations of air pollution are quite high, especially where home heating is mainly by open fires or wood burners.

The main concern is pollution from fine particles, which is a major health risk for the young, the elderly, and those suffering from respiratory diseases. Measurements suggest that more people in New Zealand are likely to die prematurely from fine particle pollution than are killed on the roads. The primary source of fine particle pollution is home heating using wood and coal, though in Greater Auckland vehicles are a major contributor.

The graph below shows the relationship between average daily levels of fine particles and hospital admissions for respiratory illnesses over 10 years in Christchurch. Large increases in fine particle emissions in the winter months result in a corresponding increase in the number of hospital admissions. Admissions rose throughout the period, from about 20 per day in the winter months, to nearly 40.

The first national environmental standards under the Resource Management Act, approved in 2004, focus mainly on improving air quality. The 14 standards include:

• seven standards banning activities that discharge significant quantities of dioxins and other toxics into the air
• five standards for ambient (outdoor) air quality
• a design standard for new wood burners installed in urban areas
• a requirement for landfills over 1 million tonnes of refuse to collect greenhouse gas emissions.

The Ministry for the Environment is working with local government on implementation of the standards. While almost all of New Zealand can meet the standards, some population centres will find this difficult. Christchurch, for example, recorded 32 high-pollution days this winter (which is lower than most winters).

The Ministry's involvement includes funding $800,000 of air quality monitoring equipment for regional councils and the multi-year Warm Homes project, which is investigating ways to encourage a move to cleaner heating and warmer homes - bringing both public health and environmental benefits.

To clean up the air, we also need direct policy intervention to have cleaner, more efficient motor vehicles.

Waste

The New Zealand Waste Strategy is consistent with a sustainable development approach. It aims to lower the social costs and risks of waste, reduce damage to the environment from waste generation and disposal, and increase economic benefit by more efficient use of materials.

The Strategy, which set a new direction for dealing with waste in New Zealand, contains broad policies and objectives as well as specific targets. It is explicitly linked to the National Energy Efficiency and Conservation Strategy and to climate change policies. Good progress is being made towards the targets and support for the Strategy is high.

Solid waste disposal is generally well managed in New Zealand. Nationally we dispose of 3.4 million tonnes of waste into our landfills every year, with similar amounts of waste from building and demolition sites disposed of into cleanfill sites. The total number of operating landfills has reduced from over 300 in 1995 to under 100 now, following the closure of full or sub-standard facilities. More than 95% of New Zealanders now have access to kerbside recycling collections.

Two areas where there are still potential for gains are in management of hazardous wastes and industry responsibility for 'special' wastes such as used tyres and electronic waste.

Most elements of a comprehensive and integrated policy framework for management of hazardous wastes are expected to be in place by December 2005. Provisions for tracking hazardous waste still need to be put in place, though a pilot tracking system began in May 2005. The proposed tracking system will also provide useful data on hazardous waste generation, treatment and disposal, which is not currently collected nationally.

Product stewardship (industry responsibility for special wastes) offers considerable potential for a sustainable development approach leading to environmental benefits. Voluntary approaches are currently in place with packaging, tyres and used oil, and some businesses have taken their own initiatives. However, there are limits to what a voluntary approach can achieve - there are issues of 'free riders' and sometimes unwillingness by industry to effectively address problems.

We have been working towards legislation that would allow regulation to be used as a backstop measure if there are significant waste problems with particular products such as electronic goods and no voluntary scheme can deal with these. A discussion document outlining this proposal was released in July 2005.

Environment and economy

Much of our economy relies on our natural environment, but can also have a negative impact on it. The challenge for New Zealand is to facilitate sustainable economic development while protecting ecosystems and the quality of our environment.

Rural issues

While most New Zealanders live in an urban environment, much of our land supports the agriculture, food and forestry industries that are the core of New Zealand's economy. Because about 52% of the land is used for primary production, rural land use has a major impact on the sustainability of New Zealand's soil and water and its biodiversity.

Many environment, conservation and biosecurity issues have a major impact on rural people. These include forestry issues, pest issues, public access to land, high country conservation issues, biodiversity strategy and national policy statement, climate change, resource consents, sustainable water programme of action, and other water-related issues (such as Lake Taupo, Rotorua lakes, Waitaki Catchment). Tourism also affects people in rural areas.

However, the wide range of policies and programmes directed at rural people are generally dealt with separately, by a number of different departments. Central government does not take a coordinated approach to the rural environment in the same way we are beginning to with urban issues and sustainable cities.

There would be value for both government and rural people in a more integrated, whole of government, approach to working together for a sustainable rural environment.

Water

Water has many uses critical to our economic and social wellbeing, as well as having ecological and cultural importance. Human uses include agriculture and horticulture, hydro-electricity, industrial and domestic use, tourism and recreation.

The demand and competition for fresh water is increasing. Demand is starting to exceed the capacity to supply in dry east coast areas. Water quality is also under pressure, particularly from the intensification of farming and urban run-off. Water-related issues include:

• water quality in rivers, lakes and groundwater
• access to fresh water for irrigation, water supply, electricity generation and recreation while protecting minimum flows in rivers
• managing excess water in flood-prone areas of the country.

The Ministry for the Environment and the Ministry of Agriculture and Forestry are jointly leading work on the Sustainable Water Programme of Action, which focuses on fresh water quality, water allocation, and water bodies of national significance.

A consultation process, completed in March 2005, will influence the design of specific goals and actions in the next phase of the programme. Feedback from the consultation process suggested that defining central government's role in improving the management of freshwater quality and allocation is an important next step.

The Ministry for the Environment is also leading a review of flood risk management in New Zealand. The Manawatu and Bay of Plenty floods in 2004 highlighted the vulnerability of communities when a major flood hits. About 100 New Zealand cities and towns, along with some of the most productive farmland, are located on floodplains.

Many factors affect our future flood risk, including changing land use patterns, climate change, and how well flood risk is currently being managed. The review will provide a good picture of New Zealand's current and future flood risk situation. It will also address what the role of local and central government should be in managing flood risk.

Oceans

New Zealand has the fourth largest Exclusive Economic Zone in the world and we are still defining the limits of our continental shelf. Our uses of the ocean include recreation, customary activities, shipping, telecommunications, fishing, aquaculture, tourism, energy (both extraction of gas and oil and new renewable energy options) and extraction of other mineral and biological resources. New technologies are developing that will enable increasing access to these resources.

This wide range of activities is managed through different, and sometimes unconnected, institutions and legislation. In the short term, adjustments to the existing system can be made to deal with new interests as they arise, though with increasing difficulty. However, with better management we can improve the value of our oceans for New Zealand. We can also be more proactive in managing the growing demand for, and pressures on, marine space, resources and ecosystems.

The Ministry for the Environment is leading work across central government to develop an Oceans Policy that will ensure integrated and consistent management of the oceans within New Zealand's jurisdiction.

Climate change

Most international climate scientists agree there is strong evidence that most of the global warming observed over the past 50 years is caused by human activity increasing the level of greenhouse gases in the atmosphere. The likely result is not simply higher temperatures, but more floods, storms, droughts and other extremes of weather, and a rise in sea levels that would affect coastal communities. The graph below illustrates the international trends.

Countries around the world have agreed that they will work together to slow the rate of climate change by tackling the rise in greenhouse gases. New Zealand - like 150 other countries - has ratified the Kyoto Protocol, a major international agreement to take action. The Protocol sets compulsory targets for reducing emissions. It recognises that the comparatively rich, developed countries have caused most of the growth in greenhouse gases so that is where the effort to cut emissions must start.

New Zealand's target under the Kyoto Protocol in the first commitment period, from 2008 to 2012, is to reduce its emissions to the level they were in 1990 or take responsibility for the excess. If New Zealand's climate change policies do not reduce emissions to the levels they were in 1990, then 'taking responsibility' will mean either buying emission units ('carbon credits') on the international market from countries that reduce their emissions below the target level, or offsetting the emissions with young forests that will absorb carbon dioxide as they grow.

International negotiations on the design of future commitment periods will begin soon. New Zealand will be seeking to negotiate rules and targets that are fair and protect our national interests and competitiveness.

New Zealand is unusual in world terms in three ways:

• 49% of our emissions come from agriculture - methane produced by animals and nitrous oxide from fertilisers and soils
• 70% of our electricity comes from renewable sources - only 8% of our greenhouse gases come from electricity generation
• We have high levels of forestry compared to many developed countries. These 'carbon sinks' can be used to offset our greenhouse gas emissions to a significant extent.

New Zealand's greenhouse gas emissions have increased by 22.5% since 1990. The growth has been mainly in transport emissions, methane emissions from dairy cows, and emissions produced by the use of nitrogenous fertilisers in agriculture and consumption of fossil fuel for generating electricity.

The increase in emissions is primarily the result of strong economic growth. The causes include expansion of dairy farming and increased use of nitrogenous fertilisers, more cars and trucks on the road, using more electricity per capita, and an increasing population.

Policies and net position

New Zealand's climate change policies, adopted in 2002, were focused on meeting our commitments in 2008 - 2012 and obligations that may be agreed internationally in future. Key elements included:

• improving energy efficiency, including encouraging energy-efficient transport choices, and reducing energy wastage (the National Energy Efficiency and Conservation Strategy and New Zealand Transport Strategy are important in this)
• supporting projects that will help to reduce emissions by awarding them Kyoto emission units that can be traded on the international market
• imposing a carbon tax on fossil fuels that emit carbon dioxide, initially at $15 per tonne, from April 2007
• assisting businesses that will be seriously affected by the carbon tax through:
  • Negotiated Greenhouse Agreements that will give full or partial relief from the tax for eligible companies, if they commit to moving to international best practice in managing greenhouse gas emissions
  • assisting energy-intensive businesses through grants to encourage investment in energy efficient technologies, demonstration projects to increase innovation and technology uptake, and providing information
• supporting local government and the community to reduce greenhouse gas emissions and prepare for the effects of climate change.

Although emissions from agriculture are large, until at least 2012 the agricultural sector will be exempt from any tax on these emissions. The agricultural sector and the government have agreed to jointly fund research into reducing emissions.

A strong and profitable forest industry will play a key role in reducing our net greenhouse gas emissions, as growing trees absorb and store CO₂. Under the Kyoto Protocol countries have to account for the carbon stored in and released from forests. This requires a robust carbon accounting system in order to claim sink credits and to trade carbon. Cabinet approved development of such a system in early August 2005.

New Zealand will be able to earn credits from carbon taken up by new forests, but must hold emission units to cover the CO₂ released when trees are harvested or forests cleared. The government decided to manage these 'sink' credits and the implications of changing land use from forestry, at least for the first commitment period of the Kyoto Protocol. This allows forests planted before 1990 to be harvested or cleared without any cost to the forestry sector.

The owners of forests planted since 1990 will not face any penalties when they harvest or clear their forests. An initiative now being developed will give owners of permanent forests the sink credits for their newly established forests.

Each year New Zealand must report to the United Nations on all human-caused emissions and removals of greenhouse gases in New Zealand. This greenhouse gas inventory also records the trends in emissions since 1990.

A further report, the net position projection, estimates how close New Zealand will be to its target under the Kyoto Protocol's first commitment period (2008 - 2012). In 2005 these estimates suggested that New Zealand will have a net deficit (ie, greenhouse gas emissions are expected to be higher than the target, even with adjustments made for our sink credits). The most likely value of the deficit is forecast to be 36 million tonnes of carbon dioxide equivalent. This position reflects both the forecast continuation of growth in emissions and a reduction in carbon sinks.

As with all forecasts, the results depend on the quality of the data and the assumptions and variables used in the models. There is uncertainty over some major variables, for example the amount of deforestation and the future impact of policies. An independent review of the methodologies and estimated emissions used to calculate the balance of figures now describes the New Zealand approach to forecasts as reasonable.

In recognition of the expected net deficit, The Treasury has listed an equivalent liability ($307 million) in the Government financial statements. This does not rule out future changes in the net position calculations

A whole-of-government team is leading a review which will analyse and consider changes to the current emissions reduction goal and the climate change policy mix. The main objective of the review is to identify, at a high level, an appropriate mix of policies that New Zealand should adopt to meet its obligations in the first commitment period of the Kyoto Protocol and beyond. Advice on this will be provided to Cabinet by 31 October 2005, at which time it will be the decision of the incoming government to choose the policy direction for climate change.

New Zealand could be asked for a preliminary position on what happens after the first Kyoto Protocol commitment period (2012) as early as November 2005.

Hazardous substances and pollution

Chemicals and substances that readily explode, burn, oxidise, corrode metals or poison living things are an essential part of industry and are often used in our daily lives. However, they can be a risk to people and to the environment if not well managed. The Hazardous Substances and New Organisms Act and regulations control storage, handling, transport, and use, from import or manufacture to disposal of substances that have hazardous properties.

Further information about the Hazardous Substances and New Organisms Act can be found on page 19. Information about management of hazardous waste is on page 10.

Compared to many industrialised nations, New Zealand has generally low levels of toxic contaminants in the environment. However, we have some specific sites contaminated in the past when they were used for industries such as timber treatment or gas works.

Responsibility for contaminated land rests mainly with local government. The Ministry for the Environment is leading work on historical problems by assisting councils to remediate or manage high-risk areas, developing national environmental standards, expanding existing guidelines, and leading a national collection of unwanted agricultural chemicals. Government policy is to implement remediation or management programmes for all high-risk contaminated sites by December 2015.

The Ministry for the Environment, in partnership with Tasman District Council is leading the clean-up of New Zealand's most contaminated site, the former Fruitgrowers Chemical Company site at Mapua, near Nelson. Planning has started for the clean up of the Tui Mine, on the slopes of Mt Te Aroha.

Sustainable industry

In 2002 the Ministry for the Environment established a 'sustainable industry' function to encourage good environmental performance and sustainable growth in New Zealand industry.

The Ministry is working in partnership with industry to integrate environmental concerns and policies into industry practice. Voluntary measures can often achieve good results at a lower cost to society than regulation. Industry can be effective in achieving positive environmental outcomes rather than relying just on rules imposed by regulatory agencies.

Some examples of partnership initiatives between the Ministry and other government agencies and industry include:

• Dairying and Clean Streams Accord: Signed by the government, Fonterra and regional councils, this aims to achieve clean healthy streams, rivers, lakes, ground water and wetlands in dairying areas
• New Zealand Packaging Accord: A voluntary collaborative effort to improve the sustainability of packaging used in New Zealand.
• Tyre Track: A collection system intended to discourage illegal dumping of tyres and to improve the certainty of supply for would-be recyclers.

The Environmentally Sustainable Tourism Project was developed by the Ministry for the Environment and Ministry of Tourism. It aims to develop and implement sustainable tourism charters in six regions over a four-year period by partnering with regional tourism organisations. The clusters of regional businesses involved in this project will adopt environmentally sustainable business practices such as energy efficiency and waste minimisation. The project will help in managing the increasing environmental pressure from tourism through improved business practices and/or the use of new resources and approaches.

Many business sector groups and companies are starting to promote environmentally responsible performance themselves and to see good environmental management as part of the way they do business. This is reflected in the increasing uptake of environmental management systems, ecolabels and environmental reporting.

The Ministry plans to continue encouraging and working with business sector-initiatives.

Environment and trade

New Zealand has taken a strong position internationally on sustainable trade. This is reflected in frameworks for integrating environment (and labour) standards and trade approved by Cabinet in 2001. It is important both environmentally and for trade competitiveness that environmental factors are not used as disguised barriers to trade, and that our trading partners do not gain trade advantages through low environmental standards.

The Ministry for the Environment supports the work led by the Ministry of Foreign Affairs and Trade in the World Trade Organisation and in New Zealand's bilateral trade negotiations. We have negotiated environmental provisions associated with the recently signed Thailand/New Zealand Closer Economic Partnership, and the Trans Pacific Strategic Economic Partnership (Chile, Singapore, Brunei and New Zealand). Negotiations are underway with China, Malaysia and ASEAN/Australia.