4. Policies and measures
Introduction and overview of the policy-making process
The Government has considered that in order to minimise the risk of climate change to New Zealand, its Pacific neighbours, and other countries, New Zealand should participate in the international efforts to mitigate climate change. This commitment requires a credible domestic programme to reduce greenhouse gas emissions and enhance sinks.
New Zealand began its response to climate change in 1988 with the establishment of the New Zealand Climate Change Programme, coordinated by the Ministry for the Environment. In May 2000, the Ministerial Group on Climate Change was established to oversee the further development and implementation of New Zealand's climate change response. The Ministerial Group on Climate Change was convened by the Minister responsible for a range of portfolios including Energy; Research, Science and Technology; and Statistics. Other members of the Ministerial Group on Climate Change represented the core Government agencies working on climate change in New Zealand (see below).
In 2001, the New Zealand Climate Change Programme shifted to the Department of Prime Minister and Cabinet as the Government developed its preferred policy package. In October 2002, after extensive nationwide consultation, the Government announced its climate change policy package, which included the intention to ratify the Kyoto Protocol (Department of Prime Minister and Cabinet, 2002a). This package included the establishment of a New Zealand Climate Change Office (Department of Prime Minister and Cabinet, 2002c), ultimately placed in the Ministry for the Environment. On 19 December 2002, New Zealand became the 101st nation to ratify the Kyoto Protocol. [The Kyoto Protocol commits New Zealand to reducing its greenhouse gas emissions to 1990 levels, on average, over the period from 2008 to 2012, or to take responsibility for any emissions above this level.]
In 2002, the New Zealand Parliament passed the Climate Change Response Act, which established a New Zealand climate change registry and corresponding institutional arrangements in accordance with Kyoto Protocol requirements.
In 2004, the Government made subsequent policy decisions which will impact on the design and rules of the registry, including:
- allowing private New Zealand businesses and individuals to hold accounts in the registry and trade in emission units
- allowing entities to bank temporary certified emission reduction units and long-term certified emission reduction units, resulting from forestry projects under the Kyoto Protocol's clean development mechanism (as created by international decisions at the Ninth Conference of the Parties), in the registry.
Following confirmation of international requirements for the development of emission unit registries in December 2004, officials started designing the necessary electronic framework to accommodate New Zealand's climate change registry. The legislative changes needed to implement the above two policy decisions are contained in the Climate Change Response Amendment Bill, currently in the Parliamentary process.
Drawing on the climate change policy package, the Climate Change Office was given the role of coordinating a whole-of-Government approach to addressing climate change with the overarching goal:
... that New Zealand should have made significant greenhouse gas reductions on business as usual and be set towards a permanent downward path for total gross emissions by 2012.
In late 2004 and early 2005, the Ministry for the Environment restructured the Climate Change Office, distributing its functions across the Ministry. Through a steering group of senior officials chaired by Ministry for the Environment, work on climate change is coordinated across Government and advice is provided to Ministers. Agencies involved are:
- Ministry for the Environment
- Ministry of Foreign Affairs and Trade
- The Treasury
- Ministry of Agriculture and Forestry
- Ministry of Economic Development
- Te Puni Kokiri (Ministry of Māori Development)
- Ministry of Transport
- Ministry of Research, Science and Technology
- Energy Efficiency and Conservation Authority
- Department of Prime Minister and Cabinet.
Following the New Zealand general election in September 2005, a new ministerial position was established: the Minister Responsible for Climate Change Issues. This Minister convenes a Ministerial Reference Group on Climate Change covering the portfolios of Finance, Agriculture, Forestry, Energy, Transport, Environment, and Economic Development. The general election also changed the composition of the Parliament, and future policy development will need to have regard for the interests represented.
Overview of policies and measures
In addition to the 2002 climate change policy package, the Government's policy response to climate change rests on a number of foundation policies described in this communication that are already in place and will continue to apply both during the Kyoto Protocol's first commitment period 2008-2012 and beyond. These include:
- National Energy Efficiency and Conservation Strategy
- New Zealand Waste Strategy
- New Zealand Transport Strategy.
The Government's 2002 climate change policy package included policies and measures focused on the energy, transport, industry, agriculture, waste and forestry sectors as well as cross-sectoral policies and measures. When the Government introduced this climate change policy package, it anticipated there would be three reviews not later than 2005, 2007 and 2010 (Department of Prime Minister and Cabinet, 2002b). The reviews would be necessary to monitor progress with emission reductions, assess the effectiveness of policies, and confirm that New Zealand was positioned to meet its commitments. In mid-2005, a full policy review was commissioned by Cabinet. The review was completed in November 2005. The review concluded that some elements of the Government's 2002 climate change policy package should be modified to better position New Zealand to respond to the longer-term challenges of climate change. In December 2005, the Government announced that it would not proceed with the carbon tax and associated Negotiated Greenhouse Agreements, and would implement work programmes in each of the key sectors to develop further policies and measures. In that announcement, the Government reaffirmed its commitment to the Kyoto Protocol.
As a result of the review, Government officials are undertaking further policy work, in consultation with stakeholders, and will report back to Ministers on a range of work programme areas. Because the Government's climate change policy is in a phase of transition as the Government considers the work programmes, new policies and measures under development are not able to be included in the Fourth National Communication. Therefore, this chapter reports only those policies and measures that remained in place as of December 2005. A summary of the policies and measures reported in this chapter is presented in Table D1 (see Appendix D).
Energy policies and measures
All policies and measures aimed at reducing greenhouse gas emissions from the energy sector focus primarily on carbon dioxide, which accounts for over 96 percent of the greenhouse gas emissions from the sector. Pursuant to the 2005 review, the Government has established several work programmes that address the further development of policies and measures for the energy sector. Ongoing policies and measures in the energy sector are reported below.
Sustainable energy work programme
The Government initiated a sustainable energy work programme following the release in January 2003 of its Sustainable Development Programme of Action, which identified energy as a key area. In October 2004, the Government released the document Sustainable Energy: Creating a Sustainable Energy System setting out the longer-term challenges for the secure, affordable and sustainable delivery of energy services.
The programme is a whole-of-Government process led by senior officials from energy-related departments. It involves raising awareness around upcoming challenges in energy, providing a coherent picture of actions the Government is taking to meet those challenges, and providing an assessment of where current Government actions are sufficient and where more needs to be done. It aims to incorporate sustainable development principles in energy policy decision-making and to ensure that New Zealand's energy system is well-positioned to meet present and future challenges, particularly climate change and peak oil.
At the end of 2005 the Government announced it would develop a National Energy Strategy to provide long-term direction and leadership to put New Zealand firmly on the path to an energy system that supports economic development, while being environmentally responsible. The Government also emphasised renewed commitment to promoting energy efficiency and renewable sources of energy. A long-term strategy will help New Zealand to navigate the challenges of security of supply, climate change and rising oil prices by providing:
- A strategic view that accounts for major challenges ahead and connects current policy decisions to long-term policy intentions
- Key priorities and focus for Government and market actions
- Greater regulatory certainty for long-term decision making
- Durable guiding principles for energy decisions leading to consistent actions across the sector and over time
- Policies to address greenhouse gases in the energy sector
- Key areas for applied energy research programmes and uptake
- Improved effectiveness of institutions and regulatory arrangements;
- Greater stakeholder involvement and buy-in.
Due to the inter-linkages with climate change policy and other concurrent processes the development of a National Energy Strategy is a whole-of-Government process.
National Energy Efficiency and Conservation Strategy
The Energy Efficiency and Conservation Act 2000 established the Energy Efficiency and Conservation Authority (EECA) as a Crown entity, and mandated the preparation of a National Energy Efficiency and Conservation Strategy by 2001 with a review after five years. The National Energy Efficiency and Conservation Strategy provides a guiding, coordinating and aspirational framework for all of the Authority's activities.
The Energy Efficiency and Conservation Authority's function is to encourage, promote, and support energy efficiency, energy conservation, and the use of renewable sources of energy.
The National Energy Efficiency and Conservation Strategy is driven by six policy goals:
- reduced carbon dioxide emissions
- reduced local environmental impacts
- improved economic productivity
- promotion of industry development
- improved economic resilience
- improved health and welfare.
There are also two high-level national targets:
- a 20 percent improvement in economy-wide energy efficiency by 2012
- increased renewable energy supply, to provide a further 30 petajoules of consumer energy in the year 2012.
The strategy was launched in September 2001. The Government agreed, in March 2006, to replace the strategy within the next 12 to 18 months.
The Authority carries out activities aimed at contributing to these targets in five broad areas: the business sector, the residential sector, the energy supply sector (including renewables), the transport sector, and a range of cross-sectoral measures. Highlights of these are described below.
Business sector programmes: "Emprove"
Description of the policy or measure
Launched in 2003, Emprove includes the provision of grants for energy audits, loans to implement energy savings and raising awareness of the opportunities to improve profitability through good energy management.
Objectives of the policy or measure
Emprove aims to help high-energy-use businesses achieve savings in their energy expenditure.
The greenhouse gas or gases affected
The greenhouse gas covered is primarily carbon dioxide through reduced electricity consumption.
Type or types of policy or measure
Emprove is a facilitating action, including the provision of financial resources.
Status of implementation
The programme is under implementation.
Implementing entity or entities
The programme is implemented by the Energy Efficiency and Conservation Authority.
Quantitative estimate of the impacts of the policy or measure
The indications are that Emprove directly contributes over 0.2 petajoules of energy savings per year.
Residential sector programmes: Building regulations
Description of the policy or measure
The residential sector comprises 12 percent of New Zealand's energy consumption and includes private homes, rented homes, apartments, flats and mobile homes. It excludes commercial accommodation and private transport. EECA operates two programmes in this sector: building regulations and EnergyWise home grants. The building regulations programme seeks to make ongoing changes to the Building Code to improve the energy efficiency of residential and commercial dwellings.
Objectives of the policy or measure
The programme targets the capacity of the building regulatory process to deliver energy efficient outcomes in New Zealand's building stock.
The greenhouse gas or gases affected
These measures primarily cover carbon dioxide,through reduced electricity consumption.
Type or types of policy or measure
It is a regulatory measure, improving the existing code.
Status of implementation
The Building Code is being reviewed to respond to the purposes and principles of the Building Act 2004 - which includes a requirement to "facilitate the efficient use of energy and energy conservation and the use of renewable energy in buildings." The new Building Code is expected to come into force around 2009.
Implementing entity or entities
The review is managed by the Department of Building and Housing, with input from the Energy Efficiency and Conservation Authority on energy efficiency and renewable energy issues.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Residential sector programmes: EnergyWise home grants
Description of the policy or measure
The grants scheme focuses on fitting insulation - as well as other energy efficiency measures - for existing homes.
Objectives of the policy or measure
The objective is to improve the energy efficiency of approximately 100,000 pre-1977 homes occupied by low-income families.
The greenhouse gas or gases affected
This scheme primarily covers carbon dioxide from reduced demand for electricity and some fossil fuel.
Type or types of policy or measure
The scheme provides financial assistance.
Status of implementation
The Energy Efficiency and Conservation Authority has administered EnergyWise home grants since 1995. To 30 June 2005, 17,000 homes have been insulated, with $19 million of Government funding.
Implementing entity or entities
The Energy Efficiency and Conservation Authority directly funds service providers, who carry out implementation in the field. Service providers include energy suppliers, energy consumer trusts, lines companies, product suppliers and local councils.
Quantitative estimate of the impacts of the policy or measure
The programme is expected to contribute an additional 0.07 petajoules of energy savings in 2006.
Energy supply and renewables programmes: Renewable energy to the grid
Description of the policy or measure
The aim of this programme is to ensure that more electricity generated for the grid or fed into local distribution networks is sourced from renewable energy. The programme is designed to influence the decisions of existing or potential electricity generators.
Typically the Energy Efficiency and Conservation Authority will provide information, advice and support on renewable energy projects to inform development proposals and facilitate better decision-making by local authorities. This includes providing submissions to local authority's plans, commenting on renewable energy project proposals and supporting the Projects to Reduce Emissions process.
Objectives of the policy or measure
Nationally 10-15 petajoules [The nature of the Energy Efficiency and Conservation Act's influence in this area means attribution cannot be meaningfully made, so New Zealand's expected additional national supply of renewable energy in 2012 relative to 2001 is used.] of additional (from 2001) renewable energy are expected to be added to the grid in 2012.
The greenhouse gas or gases affected
The programme primarily covers carbon dioxidethrough reduced fossil-fuel electricity generation.
Type or types of policy or measure
The programme focuses on provision of information.
Status of implementation
The programme is under implementation.
Implementing entity or entities
The programme is implemented by the Energy Efficiency and Conservation Authority, working with local authorities and those proposing new generation projects.
Quantitative estimate of the impacts of the policy or measure
An estimate suggests the programme has resulted in a net increase in total renewable electricity capacity of approximately 190 megawatts from March 2000 to March 2004.
Energy supply and renewables programmes: Market development of renewable energy
Description of the policy or measure
This programme encourages the uptake of small-scale renewable energy technology through interest-free loans, information provision and education, and supporting market research.
Objectives of the policy or measure
The aim is to increase the sustainability of New Zealand's energy supply by increasing the contribution of renewable energy derived from small-scale energy technologies such as solar water heating and stand-alone power systems.
The greenhouse gas or gases affected
The greenhouse gases covered are primarily carbon dioxidethrough reduced demand for grid-purchased electricity and fossil fuels.
Type or types of policy or measure
The activities include:
- interest-free loans to purchase solar water heating systems
- promotion of benefits of solar water heating and other renewables
- support for the renewable energy industry, mainly manufacture of solar water heaters (for example, standards, quality assurance, training programmes, demonstration projects)
- support for market research, monitoring and analysis.
Status of implementation
The programme is under implementation.
Implementing entity or entities
The Energy Efficiency and Conservation Authority, working closely with the renewable energy industry, is responsible for implementation.
Quantitative estimate of the impacts of the policy or measure
The focus has been on encouraging solar water heating, with approximately 2,300 new systems installed in 2004 - an increase of 40 percent over sales in 2003.
Nationally, one to two petajoules of additional (from 2001) renewable energy are expected to come from small-scale technologies in 2012.
Energy supply and renewables programmes: Demand response
Description of the policy or measure
This programme involves investigation and facilitation of demand response in the electricity market.
Objectives of the policy or measure
The objective is to significantly improve the responsiveness of medium-sized electricity users to the spot market and their ability to respond to prior signals by shedding or shifting load, or switching to distributed generation options.
The greenhouse gas or gases affected
The programme primarily covers carbon dioxide through reduced fossil fuel electricity generation.
Type or types of policy or measure
The programme identifies and instigates practical measures to facilitate greater demand response within the electricity industry. Specific activities include pilot projects demonstrating demand response practices, and seminars on improved efficiency of electricity usage through load management.
Status of implementation
Currently work focuses on exploiting lessons from existing examples of demand management and trialling creative applications of new technologies and market mechanisms. This is expected to lead to larger-scale deployment of demand-response activities over the medium term.
Implementing entity or entities
The programme is implemented by the Energy Efficiency and Conservation Authority, working closely with the electricity supply industry and the Electricity Commission.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Transport measures
The Energy Efficiency and Conservation Authority operates two programmes in the transport sector: providing support for travel demand management, and a biofuels programme as described in the transport sector. (Note that these programmes are not identified separately under the energy sector category of 4NC Table D1.)
Cross-sectoral programmes: Energy efficiency of products
Description of the policy or measure
There are two sub-programmes: minimum energy performance standards and labelling; and "Energy Star." The first is largely regulatory in nature. It imposes requirements to display energy efficiency labels and ensures that certain types of products meet minimum standards of energy efficiency.
The second, Energy Star, is a voluntary endorsement scheme that, through labelling, will encourage consumers to purchase home appliances, office products and domestic refrigerators based on the Energy Star energy-efficiency specifications.
Objectives of the policy or measure
The aim is to increase the stock of energy efficient products by influencing the purchase process.
The greenhouse gas or gases affected
The programme primarily covers carbon dioxide through more efficient use of energy.
Type or types of policy or measure
The programme includes regulatory standards for energy performance, coupled with mandatory and voluntary labelling to provide information to consumers.
Status of implementation
The Energy Efficiency and Conservation Authority is working with Australian government agencies to develop a joint appliance programme for 2005-07. The joint programme unifies current separate programmes operating in each country and expands the breadth of products subject to investigation and possible energy efficiency regulatory measures.
Existing minimum energy performance standards and labelling cover a number of important product classes including household refrigerators and other appliances. The programme will implement minimum energy performance standards or labelling interventions for 14 product classes by 2008, and a further 19 product classes will be investigated for possible measures in this period.
Implementing entity or entities
The programme is implemented by the Energy Efficiency and Conservation Authority, together with industry and Australian counterparts under the joint National Appliance and Equipment Energy Efficiency Committee.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Transport policies and measures
Institutional arrangements and recent changes
In December 2004, the Government transport sector implemented a structural reorganisation, as identified in the Transport Sector Review. This reorganisation has strengthened the ability of the Ministry of Transport and the transport agencies to deliver the objectives of the New Zealand Transport Strategyacross all modes of transport without compromising the significant gains already made in the improvement of transport safety. The environmental policy capability of the transport sector has gradually developed since 1996. The reorganisation included the establishment of a dedicated environmental policy group within the Ministry of Transport in late 2004 and significant progress is now being made in this area.
Responsibility for the integrated management of land transport planning and delivery, including funding allocation, has been assigned to the new Crown entity Land Transport New Zealand, formed in 2004 from the former agencies Transfund and Land Transport Safety Authority. Land Transport New Zealand is required by statute to exhibit a sense of social and environmental responsibility which includes avoiding, to the extent reasonable, adverse effects on the environment. Before approving an activity for funding, Land Transport New Zealand must be satisfied that the activity will contribute in an efficient and effective manner to Land Transport New Zealand's objective, including its social and environmental responsibility. Land Transport New Zealand must also be satisfied that the activity has been assessed to the extent practicable against other land transport options and alternatives.
In operating the state highway system, Transit New Zealand (Transit) is also required by statute to avoid, to the extent reasonable, adverse effects on the environment. Every year Transit must prepare a land transport programme for the state highway system and submit this to Land Transport New Zealand for approval. Transit's bid is prioritised alongside applications for funding submitted by local government.
The environmental work programmes that are led by central Government include:
- uptake of cleaner fuels through fuel specification standards, specifically regulating sulphur levels
- introduction of vehicle emission standards and development of policies to reduce the negative air quality impacts of motor vehicles
- fostering the uptake of renewable fuels
- fostering purchase of fuel-efficient vehicles through providing consumer purchasing information and Government purchasing practices
- processes involving local government and focused on the development and implementation of integrated regional planning strategies
- increased funding for walking and cycling infrastructure
- increased funding for public transport.
New Zealand Transport Strategy
As signalled in New Zealand's Third National Communication, the Government completed the New Zealand Transport Strategyin 2002. The strategyis the first comprehensive attempt to recognise all modes and users of transport and to respond directly to the broader social, economic, and environmental needs of the country. The strategy'svision is as follows: "By 2010 New Zealand will have an affordable, integrated, safe, and responsive and sustainable transport system." The strategy has five integrated objectives which are equally important:
- assisting economic development
- assisting safety and personal security
- improving access and mobility
- protecting and promoting public health
- ensuring environmental sustainability.
The New Zealand Transport Strategy gives a strategic framework to transport decision-making in New Zealand. The enactment of the Land Transport Management Act 2004 means that transport agencies must reflect the broad focus of the New Zealand Transport Strategy within their policy and operational outputs. Previously agencies had a focus on "safety and efficiency at reasonable cost". The strategyis helping to inform decision making by central Government, guide the work of its agencies, and act as an important point of reference for communities.
The New Zealand Transport Strategywas completed in 2002 and was given legislative backing by the Land Transport Management Act 2004. In approving any activity as qualifying for national funding the relevant Government agency (Land Transport New Zealand) must specifically take into account how the proposal meets the five objectives of the strategy, including how it "ensures environmental sustainability". Transit New Zealand, which operates and maintains state highways, and local government in its functions, are similarly guided by the multiple objectives.
The Ministry of Transport is the Government department leading and coordinating the implementation of the strategy. Alignment of national and regional transport plans to the New Zealand Transport Strategyobjectives under the Land Transport Management Act 2004 is generally the responsibility of implementing agencies such as Land Transport New Zealand. Several major policy documents identify transport as an element in meeting their objectives and the New Zealand Transport Strategy acknowledges these. Key documents are: Growing an Innovative New Zealand (Office of the Prime Minister, 2002), the New Zealand Tourism Strategy (Ministry of Tourism, 2003) and the National Energy Efficiency and Conservation Strategy (Energy Efficiency and Conservation Authority, 2001).
To support the environmental objectives of the New Zealand Transport Strategy,the Government has indicated funding priorities. Through increasing funding for travel demand management, the Government is seeking to improve use of existing transport networks and to educate and inform people about alternative travel choices by emphasising individual and community benefits of smart travel behaviour and environmentally friendly travel modes; for example, travel planning. An increase in patronage funding for public transport has seen growth in public transport use. Patronage funding was introduced in 2000 as a way to boost funding for public transport and to encourage regional councils to focus on initiatives that would get more people using public transport. Since its introduction, public transport patronage has increased by about 27 percent. An attractive public transport system will also increase the likelihood of the success of transport demand management.
4NC Figure 25 shows the substantial increase in funding for public passenger transport, alternatives to road infrastructure, and walking and cycling over the last few years and the future allocations.
National Rail Strategy
The National Rail Strategy was released in May 2005 and will be implemented by the Ministry of Transport. It sets out the Government's rail policy objectives and priorities for action over the next 10 years and outlines key initiatives that are intended to achieve the outcomes sought. The strategy focuses on growth in two key areas: freight, both bulk and containerised; and urban passenger transport. The national rail infrastructure will require significant new investment in some areas to attract new freight flows and increase the number of commuters. Nevertheless, with increasing demand for efficient freight movement in New Zealand's growing economy and increasing congestion in both Auckland and Wellington, there will be natural growth in rail freight and urban rail passengers.
The strategy outlines action in accordance with the Government's vision for an affordable, integrated, safe, responsive and sustainable transport system. This includes shifting commuter and freight traffic on to rail, where appropriate, to ease road traffic congestion.
Programmes: Air quality
Description of the policy or measure
The Government (through the Ministry of Transport and Ministry of Economic Development) has work programmes that have a primary focus on addressing air quality and health issues. These programmes have some co-benefits for reducing greenhouse gases. They cover importation of vehicles, the operation of the existing fleet and fuel quality.
The benefits of these programmes, in terms of greenhouse gas reductions, are, however, not easily quantifiable. In addition to uncertainties around emerging technologies, there are other factors that will more strongly influence fuel consumption; for example, the ability of the consumer to choose more powerful vehicles and the number of kilometres travelled. Public campaigns associated with these programmes will emphasise the need to maintain vehicles and this has direct fuel economy benefits.
The Third National Communication suggested that there would be reduced greenhouse gas emissions from a Government-planned programme for in-fleet vehicle testing. In March 2005, the Government announced that the vehicle testing programme, in the form it was initially envisaged, will not go ahead.
It has also been recognised that there was no certainty that reductions in greenhouse gases would result from the programme. Hence, New Zealand's Fourth National Communication does not include greenhouse gas reductions from vehicle testing.
Objectives of the policy or measure
The objective is to improve air quality by introducing mandatory fuel standards and improving the quality of the vehicle fleet. Diesel fuel was required to have a maximum level of 50 parts per million of sulphur by January 2006 and the Government has signalled that it will require ultra-low sulphur levels (10-15 parts per million sulphur) in 2009/2010. Lowering the sulphur levels in transport fuels will allow for uptake of emerging vehicle technologies with fuel economy benefits. Imported vehicles built after 1990 must now show that they were built to the standard that applied in the country of manufacture (Road Transport Rule: Vehicle Equipment 2004).
There is the potential for more stringent controls on the vehicle fleet. Work on vehicle emission standards covers both imported vehicles and the existing fleet. New Zealand does not have a domestic vehicle manufacturing industry and it is unusual in that New Zealand's imports are dominated by used vehicles from the domestic Japanese market.
The greenhouse gas or gases affected
With regard to transport emissions, the primary greenhouse gas is carbon dioxide. Relatively small amounts of nitrous oxide are released. Policies focused on reducing air pollutants will affect emissions of oxides of nitrogen and sulphur (NOx and SOx).
Type or types of policy or measure
The programme is regulatory.
Status of implementation
The regulations for 50 parts per million sulphur diesel and the Vehicle Equipment, Road Transport Rule are implemented. The Government has sought public comment on a reduction to 10-15 parts per million in 2009. Public consultation is currently occurring on additional controls to reduce the harmful emissions from vehicles entering, and already in, the vehicle fleet.
Implementing entity or entities
The Ministry of Transport is responsible for vehicle standards and the Ministry of Economic Development for fuel standards.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Information about non-GHG benefits of the policy or measure
The focus of the policy is improvement in air quality, including reductions in particulates, oxides of sulphur and nitrogen and hydrocarbons.
How the policy or measure interacts with other policies and measures at the national level
Policies focused on improving the quality of vehicles entering the fleet for air quality reasons have benefits for improving the fuel efficiency of the fleet.
Programme: Renewable transport fuels
Description of the policy or measure
This programme supports fulfilment of New Zealand's Renewable Energy Target, which includes an indicative target for renewable transport fuels of two petajoules a year by 2012. The two petajoules target is equivalent to about one percent of current transport energy use.
Objectives of the policy or measure
The objective is to increase production and availability of bio-ethanol/petrol blends and biodiesel. Neither is currently commercially available.
Bioethanol is produced from whey, a by-product of the dairy industry. Current domestic production of fuel grade ethanol could provide 0.2 to 0.3 percent of petrol consumption.
Biodiesel feedstock in New Zealand is primarily tallow from the meat industry. With currently available feedstock and significant investment in manufacturing plant it is estimated that it would be possible to replace five percent of diesel with biodiesel.
The greenhouse gas or gases affected
The greenhouse gas covered is primarily carbon dioxide.
Type or types of policy or measure
The programme is regulatory.
Status of implementation
The programme is in the planning stage. The Government has confirmed that it will develop and introduce a mandatory biofuels sales target. Comment has been sought from oil companies, biofuels producers and raw material suppliers, motor vehicle industry groups and transport users groups on the value of such a target. In support of a likely future sales target, fuel standards for biofuels are being developed in consultation with the industry.
Implementing entity or entities
The agencies implementing the policy are the Ministry of Transport and the Ministry of Economic Development.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Information about non-GHG benefits of the policy or measure
Use of biodiesel has air quality benefits, but these are not expected to be significant at low-level blends.
How the policy or measure interacts with other policies and measures at the national level
The programme is consistent with sustainable energy policies, including consideration of oil security.
Programme: Information on vehicle fuel-efficiency
Description of the policy or measure
A website is being developed to provide customers with a measure of vehicle fuel economy (litres per 100 kilometres). Given the high proportion of used Japanese vehicles available, this work has required understanding the manufacturing standards for the Japanese domestic market. Associated fuel-efficiency labelling of vehicles at point of sale is being investigated.
Objectives of the policy or measure
The objective is to encourage the purchase of fuel-efficient vehicles by providing appropriate consumer purchasing information, covering both new and second hand vehicles.
The greenhouse gas or gases affected
The greenhouse gas covered is primarily carbon dioxide.
Type or types of policy or measure
It is an information policy.
Status of implementation
The data have been collated. A website is planned for launch in 2006.
Implementing entity or entities
The Ministry of Transport is responsible for implementing the programme.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
How the policy or measure interacts with other policies and measures at the national level
This programme links with programmes encouraging appropriate vehicle purchases by Government departments and agencies.
Programme: Surface transport costs and charges
Description of the policy or measure
A Government-commissioned report, Investigation intoSurface Transport Costs and Charges, has been prepared. The purpose of this study was to provide estimates of the costs imposed by road users and by rail users, and the payments they make for using each mode, as the basis for future land transport policy. The study provides estimates of all of the costs and charges involved in the total nation-wide road and rail systems, including estimates for the costs of capital, infrastructure (operations, maintenance and depreciation), congestion, accidents, environmental externalities (including impacts on water quantity and quality, local air quality, noise pollution and greenhouse gas effects), taxes, and charges such as road user charges, motor vehicle registration and re-licensing, fares and freight tariffs. No policy decisions have yet been made as a result of the report.
Objectives of the policy or measure
The objective is to assist the Government to make decisions on the relative competitive position of road and rail for freight transport and of rail, bus and the private car for passenger transport
The greenhouse gas or gases affected
The programme primarily covers carbon dioxide.
Type or types of policy or measure
This is an informational initiative.
Status of implementation
The programme was launched by the Minister of Transport on 31 March 2005.
Implementing entity or entities
This initiative is implemented by the Ministry of Transport.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Information about non-GHG benefits of the policy or measure
The report also covers the cost of harmful emissions affecting air quality.
How the policy or measure interacts with other policies and measures at the national level
The report adds to the information base regarding the transport sector.
Programme: Travel demand management
Description of the policy or measure
Travel demand management programmes are targeted at businesses, local authorities, schools and other institutions.
Objectives of the policy or measure
The programmes aim to encourage people to use forms of transport that use less energy and reduce their present dependency on the single traveller per car.
The greenhouse gas or gases affected
The programme primarily covers carbon dioxide.
Type or types of policy or measure
A voluntary programme based on providing assistance through information provision, education and financial support. Government agencies (central and local) work with business and schools to establish appropriate travel behaviour and transport mode. Walking and public transport are supported.
Status of implementation
The programme is being implemented in targeted areas - primarily large urban areas.
Implementing entity or entities
The programme is implemented by the Energy Efficiency and Conservation Authority.
Quantitative estimate of the impacts of the policy or measure
These programmes are expected to contribute 0.04 petajoules of energy savings in 2006 and have the potential to contribute even greater savings in the future.
Information about non-GHG benefits of the policy or measure
Air quality benefits are generated from reduced vehicle use.
How the policy or measure interacts with other policies and measures at the national level
This programme links with local government land transport management plans. These plans include proposed developments for public transport and appropriate infrastructure to support walking, cycling and use of public transport.
Programme: Aviation and maritime transport
The Government has no specific policies aimed at reducing greenhouse gas emissions of air and maritime transport. Ministry of Transport and other officials meet with International Maritime Organisation and International Civil Aviation Organisation representatives from time to time to ensure domestic policy is kept informed of developments in those fora.
