4. Policies and measures contd.
Local Government Case Study: Auckland - A city of 1.4 million people
The Auckland Regional Land Transport Strategy (produced by the Auckland Regional Council) proposes the way forward for the region's transport system for the next 10 years - to 2016. It sets regional objectives and policies for transport planners and service-providers in the Auckland region. The legal requirement for the strategy is the Land Transport Act 1998 (Section 175 (2)) and the Local Government (Auckland) Amendment Act 2004. Since November 2003, all regional land transport strategies are required to contribute to an integrated, safe, responsive and sustainable land transport system.
Vision for transport in the Auckland region
A transport system which enhances the Auckland region as a great place to live, work, and play
The strategy's contribution to "ensuring environmental sustainability"
There are some matters which are outside the control of the Regional Land Transport Strategy. These include the fuel efficiency of vehicles and increased travel as a result of regional growth. An area which can be influenced is managing travel demand.
Travel demand
The strategy recognises that it is not possible to adopt a "predict and provide" approach to transport in Auckland - there are too many cars. While additional services and infrastructure will be required, the region will also increasingly need measures that reduce the demand for travel, particularly by private vehicles.
The strategy includes a Travel Demand Management Strategy (required under the Land Transport Management Act 2003) that seeks to influence the demand for travel - in particular to reduce car trips and to encourage more people to walk, cycle, catch public transport, share car trips, and to work, shop and play locally.
Travel demand management tools can include travel plans for schools and work places, walking and cycling networks and connections, and the supply and pricing of parking.
(Note: Charging people to use parts of the road network - road pricing - is a current central Government work programme which involves separate evaluation and public consultation.)
A consultation document identified a preferred option which gave prominence to travel demand management supported by a substantial increase in public transport spending. This focus was confirmed in the final strategy.
Costs
The strategy allocates $11.03 billion over 10 years. This includes $6.81 billion to cover new roading infrastructure, maintenance/renewals, traffic management and safety to allow improvements to the region's strategic road network. The balance of the money would be allocated to passenger transport ($3.8 billion) and travel demand management measures ($420 million).
Expected outcomes for environmental sustainability
Relevant outcomes from implementing the preferred strategic option include:
People will have a greater choice of travel modes and it will be easier to change between them with the introduction of integrated ticketing
By 2016, walking or cycling is expected to make up 15.5 percent of all trips
The reliability of public transport services will be much higher
In peak periods, 11 percent of trips is expected to be by public transport, compared with 7 percent now
Forty-nine percent of motorised trips into the Central Business District will be by public transport, compared to 32 percent now.
How will progress be measured?
1. Fossil fuel used
As a result of the significant increase in population and economic activity, energy used to travel as measured by fuel use is expected to increase by 26 percent by 2016. But, this is a lesser increase that the "do minimum" option.
2. Carbon dioxide emissions from transport
Carbon dioxide emissions generated by the transport system are expected to increase by 21 percent by 2016.
4NC Figure 28: Projected tonnes of transport carbon dioxide emissions (morning peak) in 2016 in Auckland
Industry policies and measures
When the Government completed the review of the climate change policy package in November 2005, it subsequently decided that a new focus will be required to address industry issues more effectively. As a result, the previously announced carbon tax and associated Negotiated Greenhouse Agreements for eligible industrial emitters will not now be introduced. A work programme will examine alternative measures to the announced carbon tax, including consideration of emissions trading and new, possibly voluntary, arrangements to replace Negotiated Greenhouse Agreements.
New Zealand's current climate change policies for industry are focused on the Projects to Reduce Emissions programme, measures to assist energy-intensive businesses, and the National Energy Efficiency and Conservation Strategy. All of these policies are described in other sections of this chapter.
A very small fraction (less than 0.5 percent) of New Zealand's greenhouse gas emissions is attributable to fluorinated gases. In New Zealand these are known as synthetic gases and include sulphur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs). Measures to address the emissions of these gases are addressed below.
Programme: Sulphur hexafluoride
Description of the policy or measure
Recognising the small contribution sulphur hexafluoride makes to New Zealand's overall greenhouse gas emissions profile, the Government has agreed a Memorandum of Understanding with relevant industry participants to manage sulphur hexafluoride emissions. The Memorandum of Understanding is not legally binding on either the Crown or the industry participants.
Objectives of the policy or measure
The Government has exempted users of sulphur hexafluoride from any application of its climate change policies. In return the industry representatives who have signed the memorandum agree to move towards best practice in terms of their management of sulphur hexafluoride emissions.
Users have been classed into two categories: major and minor users. Major users are defined as users holding quantities of sulphur hexafluoride within equipment exceeding 500 kilograms. Minor users hold quantities less than 500 kilograms. The Memorandum of Understanding established targets for major users to keep leakage rates at a maximum of two percent per annum relative to total equipment nameplate weight of sulphur hexafluoride held by the participant. Participants can achieve their target reductions using an offset of emissions elsewhere.
This target is qualified by another commitment from major users - to establish monitoring and reporting regimes within 18 months of signing the Memorandum of Understanding consistent with the Tier 3a methodology set out in the IPCC Good Practice Guidelines. Once the monitoring and reporting regime is in place, major users will report their emissions of sulphur hexafluoride on a July-June annual basis, with performance relative to targets measured against this reporting.
Minor users have no targets or commitments under the Memorandum of Understanding.
The greenhouse gas or gases affected
This programme targets sulphur hexafluoride.
Type or types of policy or measure
The Memorandum of Understanding is a non-binding, voluntary agreement between the Government and industry to manage sulphur hexafluoride emissions.
Status of implementation
The Memorandum of Understanding was signed on 27 July 2004 giving the major users until 27 January 2006 to implement their monitoring and reporting regimes.
Implementing entity or entities
The Memorandum of Understanding was signed by the Convenor of the Ministerial Group on Climate Change [This position is now held by the Minister Responsible for Climate Change Issues.] on behalf of the Government, and state-owned generators and transmission companies including: Transpower, Vector, Meridian Energy, Mighty River Power, Genesis Power, Contact Energy, and Comalco.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Programme: No-loss campaign
Description of the policy or measure
The programme is aimed at improving the awareness of refrigeration and air conditioning engineers about the greenhouse gas risks associated with fluorocarbon refrigerants. The mechanism is education about a code of practice followed by an examination and issuance of a "No-Loss" card to those who are successful.
Objectives of the policy or measure
The objective of this programme is to improve the management of fluorocarbon refrigerants.
The greenhouse gas or gases affected
The programme covers hydrofluorocarbons and perfluorocarbons.
Type or types of policy or measure
This is a voluntary educational programme.
Status of implementation
The programme is under implementation.
Implementing entity or entities
The programme is being implemented by refrigeration industry bodies.
Quantitative estimate of the impacts of individual policies and measures or collections of policies or measures
This information is not available.
Agriculture policies and measures
Non-carbon dioxide emissions - methane and nitrous oxide from pastoral agriculture - account for just under half of New Zealand's total greenhouse gas emissions.
Finding proven, practical and cost-effective farm practices and technologies to reduce agricultural emissions remains a challenge. The Government has decided, therefore, that it will bear the cost of the agricultural sector's non-carbon dioxideemissions, provided that the agricultural sector contributes to research into ways to reduce greenhouse gas emissions from agricultural activities.
Programme: Support for improvement of the agricultural sector national greenhouse gas inventory
Description of the policy or measure
This programme was built around recognition of the importance of the agricultural sector inventory and the uncertainties surrounding it, including the uniqueness of New Zealand's environment and agricultural systems, and need to develop country-specific emission factors.
Objectives of the policy or measure
The objective of the agricultural greenhouse gas inventory research programme was to systematically reduce uncertainties and improve the estimates of agricultural methane and nitrous oxide national inventory estimates, for the purpose of reporting to the United Nations Framework Convention on Climate Change and fulfilling other reporting requirements.
Indicators of success were to be a reduction over time in the national inventory's uncertainty estimates and a more robust national inventory estimate, as judged by international peer review.
The greenhouse gas or gases affected
The programme addressed methane and nitrous oxide.
Type or types of policy or measure
This was a Government-supported research programme funded for four years to improve the estimates of activity data and emission factors as identified by the IPCC Good Practice Guidance manual and required for reporting under the UNFCCC and Kyoto Protocol requirements.
Status of implementation
The programme was implemented 1 July 2001 and completed 30 June 2005.
Implementing entity or entities
The programme was implemented through the Ministry of Agriculture and Forestry with the support of the Ministry for the Environment and two expert science working groups, NZNet, and Methanet. The working groups comprised an inter-agency network of public and private sector scientists who were specialists in nitrous oxide and ruminant methane research.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Information about the costs of the policy or measure
The Government allocated a total of $2.75 million (GST [GST is New Zealand's Goods and Services Tax.] inclusive) to be spent over four years. The funding profile was $0.5 million, $0.75 million, $1 million and $0.5 million.
Information about non-GHG benefits of the policy or measure
The programme has highlighted the increase in animal performance over time in New Zealand, and has been instrumental in enhancements to the national agricultural statistics collected.
How the policy or measure interacts with other policies and measures at the national level
The policy forms part of the National Greenhouse Gas Inventory Programme and links closely with the national programme of research into agricultural sector mitigation research by the Pastoral Greenhouse Gas Research Consortium.
Programme: Pastoral agriculture research
Description of the policy or measure
A voluntary partnership between the Government and the agricultural sector has been formed, incorporating the establishment of a new agricultural sector body, the Pastoral Greenhouse Gas Research Consortium, a sector research strategy and collaborative funding between the parties.
Objectives of the policy or measure
The objectives of the programme are to identify, establish and develop on-farm technologies for sheep, dairy and beef cattle and deer which lower methane emissions from New Zealand ruminants and nitrous oxide from grazing animal systems.
The Pastoral Greenhouse Gas Research Consortium's target is to have safe, cost-effective greenhouse gas abatement technologies, which will lower total New Zealand ruminant methane and nitrous oxide emissions by at least 20 percent as compared with the "business as usual" emissions level, by the end of the Kyoto Protocol's first commitment period (2012).
The greenhouse gas or gases affected
The programme seeks to influence the level of methane and nitrous oxide emissions from enteric fermentation in ruminants and through deposition of nitrogen through dung and urine onto pasture and into waste management systems.
Type or types of policy or measure
The programme is a voluntary agreement between the Government and the agricultural sector to carry out research into mitigation technologies and practices.
Status of implementation
The programme was launched in 2003 and has been in place for two years. The Pastoral Greenhouse Gas Research Consortium reports annually to the Government on the progress made. The consortium refined its research strategy in 2005.
Implementing entity or entities
The programme is implemented through a Memorandum of Understanding between the Government and key agricultural sector bodies, and is implemented by the Pastoral Greenhouse Gas Research Consortium. The Memorandum of Understanding is associated with an industry strategy on the research approach to mitigating greenhouse gases in agriculture. The research outlined in the strategy document is funded through a partnership between Government and the agricultural industry and is managed by the consortium. The dairy, sheep, beef cattle, deer sectors and fertiliser manufacturers are industry partners in consortium and contribute funds to its current and future research programmes and, independently, through their own research programmes. The Government funding contribution is provided to the consortium via the Foundation for Research, Science and Technology.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Information about the costs of the policy or measure
The industry funding contribution is matched dollar for dollar by Government funding through the Foundation for Research, Science and Technology. Currently the Government funding level is $1.6 million per annum. Add-on methane and nitrous oxide research to other private and public sector research programmes significantly increases the total level of investment and impact of this programme.
Information about non-GHG benefits of the policy or measure
The aim of the Pastoral Greenhouse Gas Research Consortium is also to look for technologies that will also enhance agricultural productivity as well as environmental performance. Methane in ruminants is a waste product representing up to 10 percent of energy loss to animals. Harnessing this energy loss into increased productivity is the preferred option for Pastoral Greenhouse Gas Research Consortium research.
Some of the technologies have other environmental and economic benefits. For example, Eco N, a de-nitrification inhibitor product that reduces nitrous oxide emissions, reduces nitrate leaching into groundwater while at the same time increasing forage production.
How the policy or measure interacts with other policies and measures at the national level
A number of policies may have an impact on the extent of the methane and nitrous emissions from agriculture.
Policies that reduce nitrogen inputs and thereby limit nitrous oxide emissions are being considered for key areas around iconic New Zealand's lakes - Lake Taupo and Lake Rotorua - where degradation of water quality has been occurring due to farming and other activities.
Policies that enhance forestry are taking land out of agricultural production and so reduce methane and nitrous oxide emissions while enhancing carbon sinks; for example the East Coast Forestry Project.
In the South Island high country, the tenure of extensively farmed land is being reviewed with the aim of retuning some of the land to the Conservation Estate and out of livestock farming. From 2002 to 2013, livestock numbers are estimated to be reduced by 0.5 million stock units.
Waste policies and measures
Policies to reduce the greenhouse gas emissions associated with the waste sector have been developed by the Ministry for the Environment in partnership with local government. Particularly relevant is the organic waste stream due to its generation of methane when disposed of in landfills.
National Waste Minimisation and Management Strategy
This strategy, launched in March 2002, aims to reduce the volume of organic waste being produced through better resource use, and design for re-use. The following targets have been set:
- by 2005, 60 percent of garden wastes diverted from landfill and by 2010, complete (more than 95 percent) diversion of garden wastes
- by 2015, complete diversion (more than 95 percent) of kitchen wastes from landfills
- by 2007, all sewage sludge disposed to landfill is appropriately treated.
The strategy interacts with the national environmental standard on landfill gas capture and policy and guidance instruments regarding landfill siting, design and management.
Programme: National environmental standard for landfill methane
Description of the policy or measure
The national environmental standard requires landfills with a lifetime design capacity exceeding one million tonnes and a current stock capacity of 200,000 tonnes to collect and destroy landfill gas. The standard is expected to prevent around 40,000 tonnes of methane being emitted over the first commitment period.
Objectives of the policy or measure
The objective is to increase the use of methane recovery systems at larger landfills.
The greenhouse gas or gases affected
The programme covers methane emissions.
Type or types of policy or measure
The programme is regulatory.
Status of implementation
The national environmental standard came into effect in October 2004. Non-complying landfills have three years from that date to fund, design and install a collection system. The 2002 Landfill Review and Audit (Ministry for the Environment, 2003) shows that 19 of New Zealand's 116 operating landfills exceed the one million tonne threshold, and 75 percent of these already collect and manage landfill gas or are planning to do so in the near future.
Implementing entity or entities
This standard is implemented by regional and local councils, with support from the Ministry for the Environment.
Quantitative estimate of the impacts of the policy or measure
The standard is estimated to reduce emissions by 2.07 million tonnes CO2 equivalent over the period from 2006 to 2016. This represents 60% of all landfill gas emissions, which equals 2.4% of New Zealand's total methane emissions.
Information about the costs of the policy or measure
There will be small annual monitoring costs for regulatory authorities, including central Government and regional councils.
Some landfill operators will incur gas collection system design and installation costs. All landfill operators will face monitoring and reporting costs. However, the cost to landfill operators will be relatively low as the standard's size threshold of one million tonnes is widely accepted in the industry as being the level at which collection of landfill gas is technically and financially viable.
Information about non-GHG benefits of the policy or measure
The standard will provide a level playing field and certainty for the waste management industry, as well as an incentive to divert organic waste (e.g., food scraps and garden waste) from landfills. It will also assist in the control of landfill odours and in landfill health and safety concerns.
How the policy or measure interacts with other policies and measures at the national level
There is ongoing closure of smaller landfills and the general trend towards larger landfills that attempt to meet internationally defined best practise in terms of environmental effects. There is also interaction with effects from the National Waste Minimisation and Management Strategy, including increasing separation and divergence of green waste from landfills, and from improvements in landfill management, based on recently introduced (but non-mandatory) landfill guidelines.
Programme: Methane and nitrous oxide emissions from industrial, commercial and domestic wastewater
Methane and nitrous oxide emissions from wastewater are a small part of New Zealand's total greenhouse gas emissions. However, several local authorities already extract methane from wastewater treatment plants and use it for generating electricity, heating boilers and heating digesters. In some instances the methane is flared. Some industrial emitters are extracting methane from wastewater treatment systems and using it as an energy source. Others are examining the potential for using methane from this source.
Forestry policies and measures
The Government announced its climate change policies for the forestry sector in the climate change policy package in 2002. From a Kyoto Protocol perspective, policies in relation to planted production forests are the most important. For these forests, under the preferred policy package the Government decided to retain all sink credits and their associated liabilities for at least the first commitment period. These credits arise from forests first planted since 1990 (so-called Kyoto forests). Kyoto forest owners would not face any deforestation or harvesting liabilities at any stage where the Crown had retained the forest sink credits. Should the Government decide to devolve forest sink credits in the future, then associated deforestation and harvesting liabilities would only be devolved in proportion to the credits received by the Kyoto forest owner.
Under the preferred policy package, the Government, rather than forest owners, also assumed the liability created by the Protocol for deforestation of pre-1990 forests, up to 21 million tonnes of carbon dioxide emissions. This is roughly equal to deforestation of 10 percent of forests expected to be harvested during the Protocol's first commitment period. In the event that significant deforestation occurred at levels above expectations, the Government would consider its policy options to manage emissions within the cap, including addressing issues such as how deforestation rights within the cap would be allocated; how to monitor and enforce the deforestation cap; and what actions the Government would take in the event the cap was exceeded.
Pursuant to the 2005 review of the climate change policy package, the Government is currently considering a work programme on forestry policy options for managing deforestation and encouraging afforestation (new tree planting) and reforestation (reversion to indigenous forest or replanting). Ongoing policies and measures in the forestry sector are reported below.
Programme: Permanent Forest Sinks Initiative
Description of the policy or measure
Developed in response to the 2002 climate change policy package, this proposed initiative would be a contract (registered against land titles) between the Crown and a landowner. The Crown would agree to devolve an amount of tradable carbon emission units equal to the amount of carbon sequestered in new permanent forest sinks over the Kyoto Protocol's first commitment period. Obligations under the contract would be registered against land titles and would run with and bind the land. These forests must maintain a continuous canopy cover, although limited timber harvesting is allowed.
Objectives of the policy or measure
The objective of the initiative would be to allow landowners the opportunity to access the value, created under the Kyoto Protocol, of carbon from newly established permanent forest sinks. It will also generate many environmental co-benefits, including reducing agricultural emissions (as forests tend to displace agricultural production in New Zealand) and improved resistance to damage from severe adverse weather events.
The greenhouse gas or gases affected
This initiative would principally address carbon dioxide. By displacing agricultural production this initiative will also have some effect on reducing methane and nitrous oxide.
Type or types of policy or measure
The initiative would essentially be a contractual arrangement between landowners and the Crown.
Status of implementation
The House of Representatives would need to pass the Climate Change Response Amendment Bill, which is currently under consideration, to begin the process of operationalising the initiative. Regulations would then need to be developed.
Implementing entity or entities
The programme would be implemented by the Ministry of Agriculture and Forestry.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Information about the costs of the policy or measure
The Government allocated a total of $0.25 million to establish the initiative. Once established the initiative would be fully cost-recovered from participants.
Information about non-GHG benefits of the policy or measure
The initiative would allow landowners to make better economic use of their land, particularly of isolated and erodable land not suitable for agriculture or commercial clear-fell forestry. The initiative would be likely to produce positive environmental outcomes in terms of biodiversity, soil and water conservation, water quality and flood protection, funds for natural forest restoration, diversification of forest timber species, the development of a special-purpose timber supply, and the reduction in agricultural emissions through displacing some marginal pastoral agriculture.
How the policy or measure interacts with other policies and measures at the national level
The initiative has synergies with other Government policies such as the East Coast Forestry Project.
Programme: East Coast Forestry Project
In 1992, the Government established the East Coast Forestry Project.
Description of the policy or measure
Landholders in the affected area are encouraged to tender for Government grants which help fund the cost of establishing and managing forest on eroding and erosion-prone land. This financial assistance offsets the additional costs and risks associated with afforestation on this land. The project allows a range of treatments to be applied to erosion-prone land including commercial forestry, poplar and willow planting, and the setting aside of areas for regeneration of native forests.
Objectives of the policy or measure
The project aims to facilitate the planting of 200,000 hectares of commercially productive forest over the 28 years to 2020 on eroding and erodable land in the East Coast region of the North Island. Following a Ministerial review completed in 2000, the project was modified to target 60,000 hectares of the most at-risk lands and allowing for inclusion of some surrounding lands, totalling about 120,000 hectares.
The greenhouse gas or gases affected
This project would principally address carbon dioxide. Because it will displace agricultural production, it will also have some effect on reducing methane and nitrous oxide.
Type or types of policy or measure
This is a fiscal measure. The Government provides financial incentives to treat eroding and erosion prone land.
Status of implementation
This project is under implementation. Since the project's inception in 1992, 32,000 hectares of forest have been established. This includes about 17,000 hectares of the targeted at-risk land with the balance being adjacent land established to form sustainable land management boundaries. It is anticipated that this planting rate will increase as local government regulation on sustainable land use is developed.
Implementing entity or entities
This project is implemented by the Ministry of Agriculture and Forestry.
Quantitative estimate of the impacts of individual policies and measures or collections of policies or measures
This information is not available.
Programme: Regional council-assisted afforestation
A number of regional councils offer financial support to land owners to afforest for sustainable land management and biodiversity enhancement reasons. Carbon sequestration is a co-benefit. While plantings since 1990 are known to be significant, we have not been able to quantify these, or further describe the programmes, for this report.
Cross-sectoral policies and measures
The Government's 2002 climate change policy package contained cross-sectoral policies and measures for the Kyoto Protocol first commitment period. This package included the introduction of a carbon tax from 2007, together with Negotiated Greenhouse Agreements for eligible firms. As an outcome of the review, the Government announced in December 2005 that it would not proceed with the announced carbon tax and that it would implement a work programme on alternative measures to the announced carbon tax. Two cross-sectoral policies and measures developed under the 2002 climate change policy package are ongoing: a policy for energy-intensive businesses, and the Projects to Reduce Emissions programme.
Programme: Energy-intensive businesses
Description of the policy or measure
The policy for energy-intensive businesses aims to assist energy-intensive small and medium enterprises to reduce greenhouse gas emissions through improved energy efficiency. Energy intensive businesses are defined as those that spend more than eight percent of costs on energy.
Nine industries have been identified as being energy intensive. Technologies will be selected that are capable of delivering significant energy savings and have the potential to be widely used in these industries. Firms that are willing and able to host projects in some or all of these industries will then be selected to demonstrate the application of these technologies.
The target industries are wood processing, food processing, basic metals, non-metallic industries, paper and paper products, glasshouse crops, fishing, irrigated dairying, and irrigated arable crops.
Objectives of the policy or measure
The energy-intensive businesses policy aims to reduce greenhouse gas emissions resulting from energy use by small and medium enterprises on a cost-effective basis.
The greenhouse gas or gases affected
The main greenhouse gas affected is carbon dioxide.
Type or types of policy or measure
The policy is implemented through the following four measures:
- financial grants to assist capital investment in technologies to improve energy efficiency
- demonstrations of energy-efficient technologies to provide support for innovation and technology uptake
- training for company directors to influence a conservation culture in corporate governance
- education for company managers and staff about energy efficiency.
Status of implementation
Implementation will proceed in two stages, depending on funding. The first stage is a pilot programme (under implementation), and the second stage will be a fully-fledged scheme (planned).
A pilot scheme was established on 1 July 2005 to test the effectiveness of the grant scheme and demonstration projects, and to provide information that could support establishment of a fully-fledged scheme. Training and education programmes will begin in 2006.
Implementing entity or entities
The Energy Efficiency and Conservation Authority (EECA) is responsible for implementing the policy. The Ministry for the Environment has an oversight role and is responsible for any subsequent policy change or development.
Quantitative estimate of the impacts of the policy or measure
Small to medium enterprises are estimated to account for around 15 percent (5 million tonnes) of total New Zealand carbon dioxide emissions (35 million tonnes in 2003). EECA estimates that most firms are capable of achieving energy efficiency gains of five to seven percent through relatively simple measures. Further improvements (possibly up to 20 percent) may be made using information from energy audits.
The policy aims to achieve overall efficiency gains of five percent for fossil-fuel use (coal, gas, liquid fuels), seven percent for electricity use, and up to 20 percent in some firms in the target industries. Assuming a direct one-to-one relationship between energy savings and emissions reductions, this would translate into emissions reductions of at least 300,000tonnes of carbon dioxide per year (about three percent of emissions from industrial and commercial sources).
Information about the costs of the policy or measure
The pilot demonstration and grant scheme will cost $1.1 million to implement in 2005/06 and $1.35 million in 2006/07 and 2007/08, excluding private sector capital investment. The fully-fledged scheme has not yet been fully costed.
Information about non-GHG benefits of the policy or measure
The policy aims to contribute to other Government objectives, including energy efficiency, electricity security, sustainable development, and growth and innovation.
Programme: Projects to Reduce Emissions
Description of the policy or measure
The Projects to Reduce Emissions programme aims to provide an incentive for projects that reduce emissions below "business as usual" during the first commitment period of the Kyoto Protocol. The projects contribute to emissions mitigation, capacity building in renewable energy, and improving energy efficiency.
Projects must also take place in New Zealand and result in a reduction in the total greenhouse gas emissions that will be reported by New Zealand in its greenhouse gas inventory. Foreign firms are able to participate in the tender, either directly or indirectly by way of a relationship with a New Zealand-based company.
Projects implemented under the programme are potentially eligible to be joint implementation projects in accordance with the terms of the Kyoto Protocol. Participants in the programme receive assigned amount units (AAUs) but can elect to receive emission reduction units (ERUs) if the project meets international and domestic criteria for joint implementation projects.
Objectives of the policy or measure
The programme is designed to reduce New Zealand's greenhouse gas emissions by supporting projects that provide emission reductions in the Kyoto Protocol's first commitment period (2008-2012) beyond the reductions that would have occurred without the project (that is, beyond "business as usual").
The greenhouse gas or gases affected
The main greenhouse gases covered by the programme to date have been carbon dioxide and methane. Successful project tenders have included wind farms, hydroelectricity generation, co-generation projects, geothermal electricity generation, bio-energy and landfill gas projects.
Type or types of policy or measure
The Projects to Reduce Emissions programme provides financial assistance in the form of Kyoto Protocol emission units to projects that reduce greenhouse gas emissions in the first commitment period.
Status of implementation
The project portfolio comprises 41 projects selected through two tender rounds and an early projects process. Following the review of climate change policies in November 2005, the Government has sought confirmation that there is a need for further cross-sector incentives, and if so what type of intervention is appropriate. A work programme will address this issue. The Government's consideration of future policy in this area will not affect the implementation of projects already undertaken to date under the Projects to Reduce Emissions programme.
Implementing entity or entities
The Ministry for the Environment is responsible for implementing the policy. Subsequent policy development is being undertaken as a cross-Government initiative.
Quantitative estimate of the impacts of the policy or measure
Nearly 11 million units (with each unit having a value of one tonne of carbon dioxide equivalent) have been allocated under the Projects to Reduce Emissions programme (4NC Table 2). Units will be awarded only if the 41 projects are fully implemented.
4NC Table 2: Units allocated during the Projects to Reduce Emissions rounds
| Pre-tender rounds | Number of Projects awarded units | Units allocated (millions) |
|---|---|---|
Pre-tender round |
2 |
0.76 |
Tender round 1 (2003) |
13 |
3.66 |
Tender round 2 (2004) |
26 |
6.18 |
Total |
41 |
10.60 |
Information about the costs of the policy or measure
There are minor administrative costs to the Crown incurred through measuring eligibility, negotiating contracts, monitoring project development and verifying emission reductions.
Local government policies and measures
In October 2002, the Government formally signalled in its climate change policy package that it wished to work in partnership with the local government sector to achieve its climate change objectives (both mitigation and adaptation).
Programme: Partnership with Local Government New Zealand
Description of the policy or measure
The Ministry for the Environment is working with Local Government New Zealand (LGNZ) to assist local authorities to mitigate and adapt to climate change. The Ministry for the Environment has a contract with LGNZ to deliver a formalized partnership between central and local government to enhance the Ministry for the Environment's outreach to and engagement with local government on climate change issues, thereby increasing the effectiveness of the local government and other relevant climate change work streams. The partnership aims to improve awareness, understanding and acceptance of the effects of climate change within the local government sector, leading to increased long-term, sustainable behaviour change in relation to mitigating and adapting to climate change.
Objectives of the policy or measure
The objectives of the partnership programme are to:
- establish and maintain regular communication channels between central and local government on climate change matters
- ensurelocal government involvement in peer review of adaptation guidance materials (including testing with local government focus groups)
- support the Communities for Climate Protection New Zealand mitigation programme
- support the "4 Million Careful Owners" climate change public awareness and education programme where it intersects with local government sector public awareness activities (refer Chapter 9, "Education, training and public participation")
- provideother advisory functions as required to assist central Government to communicate with the local government sector more effectively.
The greenhouse gas or gases affected
The partnership is a facility for interaction between central and local government and does not target a specific gas per se, although methane emissions from landfill and carbon dioxide emissions from transportation are particularly relevant to the local government operations.
Type or types of policy or measure
The partnership coordinates the two-way flow of information and dialogue on climate change policy and programmes between central and local government. The partnership also assists in alerting the local government sector to wider funding opportunities, such as the climate change funding stream under the 2004 Sustainable Management Fund tender round managed by the Ministry for the Environment.
Status of implementation
The partnership has been in operation since March 2004.
Implementing entity or entities
The Ministry for the Environment and Local Government New Zealand are implementing the programme.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Information about the costs of the policy or measure
The costs to the Ministry for the Environment are $65,000 per year. Information about costs to Local Government New Zealand is not currently available.
How the policy or measure interacts with other policies and measures at the national level
The partnership is the forum via which the central Government communicates with local authorities on climate change policy and programmes of relevance to local government, including the Projects to Reduce Emissions programme, and the Permanent Forest Sinks Initiative.
Programme: Communities for Climate Protection™ - New Zealand
Description of the policy or measure
A major part of the local government work is conducted in conjunction with the International Council for Local Environmental Initiatives Australia/New Zealand (ICLEI-A/NZ ) through the Communities for Climate Protection™- New Zealand (CCP-NZ) greenhouse gas emissions reduction programme.
CCP-NZ is a voluntary framework to assist councils to take action to reduce greenhouse gas emissions in their own operations and in the wider community in which they act. It is part of ICLEI-A/NZ's global Communities for Climate Protection TM campaign.
Objectives of the policy or measure
The CCP-NZ mitigation programme aims to reduce greenhouse gas emissions by:
- improving energy efficiency
- reducing waste
- encouraging sustainable transportation
- enhancing urban design
- promoting sustainable farming practices.
The programme focuses on:
- achieving political momentum in councils to take greenhouse action
- assisting council staff to develop greenhouse gas emission inventories
- setting targets for emission reductions
- developing action plans for achieving these
- putting in place monitoring programmes for emissions reductions
- building on the Energy Efficiency and Conservation Authority's Energy-Wise Councils Partnership programme, an existing programme which focuses on energy efficiency.
The greenhouse gas or gases affected
This programme addresses carbon dioxide and methane.
Type or types of policy or measure
While primarily an enabling framework to assist councils to take action to reduce greenhouse gas emissions, CCP-NZ also works to raise awareness, build capacity and improve monitoring programmes in local government.
Status of implementation
The programme was launched in July 2004. Seventeen local government bodies or councils representing around 50 percent of the New Zealand population have since joined CCP-NZ. Funding to support this programme has been secured via contract up until June 2007.
Implementing entity or entities
The International Council for Local Environmental Initiatives Australia/New Zealand implements the programme. Contract management rests with the Ministry for the Environment. Oversight for the programme's implementation is provided by the CCP-NZ governance body that includes Local Government New Zealand, the Energy Efficiency Conservation Authority, and the Ministry for the Environment.
Programme: Adaptation
Description of the policy or measure
In October 2002, Cabinet directed officials to provide more detailed information on the impacts of climate change as an underpinning element of the Government's climate change policy package, with a view to facilitating adaptation to these impacts. The Ministry for the Environment accordingly developed two work streams: economic impacts and adaptation; and local government adaptation.
These two work streams are managed by an "adaptation" project group (refer to Chapter 6, "Vulnerability assessment and adaptation")
In relation to the local government adaptation work stream, a "toolbox" of guidance materials has been produced to help councils better integrate consideration of the effects of climate change in their day-to-day decision-making.
Objectives of the policy or measure
The local government adaptation guidance materials aim to provide:
- clarification on expected future climate change effects, both in national terms and with respect to specific regions across New Zealand
- practical tools in the form of decision-making frameworks and checklists to enable councils to better consider and respond to climate change effects via existing planning, asset management, hazard management and regulatory processes
- models in the form of case studies which illustrate how other councils have integrated consideration of climate change effects into their operations.
The greenhouse gas or gases affected
This is not applicable.
Type or types of policy or measure
This is an adaptation programme.
Status of implementation
A toolbox of information materials, impacts reports and guidance materials for local government is now complete. This comprises:
- information booklets to raise awareness of climate change effects at the council and senior manager level, and technical staff and planning level respectively
- technical manuals which provide detailed scientific detail on climate change effects in New Zealand, including climate change impacts on coastal hazards
- a quality planning best-practice guidance note aimed at council planners, which outlines recommended planning approaches and the legislative basis for action
- a range of other research and information on climate change impacts on agriculture, biodiversity, health, and forestry.
In addition, a number of case studies have been completed and are available on the Ministry for the Environment website, and several more are due for e-publication shortly.
The Ministry for the Environment website also hosts an informal best practice section for local government which highlights and promotes model council activities relating to climate change.
Implementing entity or entities
This programme is implemented by the Ministry for the Environment, in conjunction with local government.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Programme: Legislative amendment to the Resource Management Act
Description of the policy or measure
The Resource Management Act 1991 is the main environmental statute governing resource management in New Zealand. The Resource Management Act is founded upon the principle of sustainable management of natural and physical resources and integrated the provisions of more than 75 earlier laws. The Act devolves the responsibility for regulating resource use to local authorities (by using regional and district plans). There have been a number of amendments to the Act since 1991 to reflect evolving priorities and needs in environmental management.
Objectives of the policy or measure
The Resource Management (Energy and Climate Change) Amendment Act 2004 reflects the Government's preference for national coordination of controls on greenhouse gas emissions. It gives greater emphasis to climate change and energy matters in Resource Management Act planning and decision-making and provides for nationally consistent management of greenhouse gas emissions. The Act makes explicit provisions within section 7 of the Resource Management Act for all persons exercising functions and powers under the Act to have particular regard to:
- the effects of climate change
- the efficient end use of energy
- the benefits to be derived from the use and development of renewable energy.
The Government's preference is to manage greenhouse gas emissions at the national level. The Resource Management Amendment Act removes councils' ability to make local decisions about managing greenhouse gas emissions when making rules in plans and considering discharge (of greenhouse gases) to air consent applications, except where necessary to implement a national environmental standard. This amendment provides for nationally consistent decision-making with respect to managing greenhouse gas emissions.
It is important to note that the Government's decision not to proceed with the announced carbon tax in December 2005 could affect the operation of the Resource Management Amendment Act. This issue will be addressed by Government officials in the new work programmes currently under development.
The greenhouse gas or gases affected
This policy affects all greenhouse gases.
Type or types of policy or measure
The Resource Management Amendment Act is a piece of legislation clarifying local government responsibility for responding to the effects of climate change.
Status of implementation
The Amendment Act came into force on 2 March 2004. The Energy Efficiency and Conservation Authority and the Ministry for the Environment have produced guidance and information on the renewable energy and climate change effects elements of the Amendment Act. There is specific guidance for councils on decision-making and planning under the amended Act. As stated above, the operation of the Amendment Act could be affected by the Government's decision not to proceed with the announced carbon tax. Officials are undertaking further work in this area.
Implementing entity or entities
This policy is implemented by local government, Ministry for the Environment, and the Energy Efficiency and Conservation Authority.
Quantitative estimate of the impacts of the policy or measure
This information is not available.
Bilateral climate change partnerships
Description of the policy or measure
New Zealand has established bilateral climate change partnerships with the United States of America and Australia. The partnerships enhance and accelerate collaboration and practical cooperation on climate change issues.
United States-New Zealand
Objectives of the policy or measure
The partnership aims to maximise United States-New Zealand business, research, and policy cooperation on climate change under nine priority areas:
- climate change science
- technology development
- registries
- agricultural emissions abatement
- business engagement
- developing country assistance
- Antarctic research
- public education
- product and process standards.
The greenhouse gas or gases affected
Carbon dioxide, methane and nitrous oxide are the primary greenhouse gases covered by the partnership.
Type or types of policy or measure
The partnership coordinates information, action, and dialogue on climate change between the United States and New Zealand. Particularly relevant is the role the partnership plays in connecting researchers in the two countries working in common areas.
Status of implementation
The partnership was announced in October 2002. The first 26 projects were launched in July 2003. A further six projects were announced in Washington, DC in July 2004.
Implementing entity or entities
The Ministry for the Environment coordinates the partnership together with the United States Department of State. A range of Government agencies, research entities, non-governmental organisations, and service providers participate in the partnership at the project level. In New Zealand, these include:
- National Institute of Water and Atmospheric Research
- Industrial Research
- CRL (Coal Research Limited) Energy
- Landcare Research
- AgResearch
- Institute of Geological and Nuclear Sciences
- Antarctica New Zealand
- New Zealand Meteorological Service
- New Zealand Business Council for Sustainable Development
- Lincoln University
- Massey University
- Victoria University of Wellington
- Ministry for the Environment
- Ministry of Agriculture and Forestry
- Ministry of Economic Development
- New Zealand Agency for International Development
- Energy Efficiency and Conservation Authority.
In the United States, project partners include:
- Department of State
- Department of Energy
- Environmental Protection Agency
- National Oceanographic and Atmospheric Administration
- National Science Foundation
- Consortium for Agricultural Soils Mitigation of Greenhouse Gases.
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
The partnership reinforces New Zealand's strong commitment to abatement research for methane and nitrous oxide emissions from agricultural systems.
Australia-New Zealand
Objectives of the policy or measure
The partnership aims to maximise Australia-New Zealand business, research, and policy cooperation on climate change under five priority areas:
- agricultural emissions abatement
- business and local government engagement
- helping Pacific Island countries
- energy efficiency
- climate change science.
The greenhouse gas or gases affected
Carbon dioxide, methane nitrous oxide and sulphur hexafluoride are the primary greenhouse gases covered by the partnership.
Type or types of policy or measure
The partnership coordinates information, action and dialogue on climate change between Australia and New Zealand. Particularly relevant is the role the partnership plays in raising awareness of the business opportunities and challenges that climate change poses.
Status of implementation
The partnership was announced in a joint Australia-New Zealand Ministerial press conference in Melbourne on 26 July 2003. The first seven projects were launched at the Ninth Conference of the Parties in Milan, Italy, December 2003.
Implementing entity or entities
The Ministry for the Environment coordinates the partnership with the Australian Greenhouse Office. A range of Government agencies, research entities, non-governmental organisations and service providers participate in the partnership at the project level. In New Zealand these include:
- National Institute of Water and Atmospheric Research
- Institute of Geological and Nuclear Sciences
- AgResearch
- Environmental Defence Society
- Ministry for the Environment
- Ministry of Foreign Affairs and Trade
- Ministry of Agriculture and Forestry
- Ministry of Economic Development
- Energy Efficiency and Conservation Authority.
In Australia, project partners include:
- Australian Greenhouse Office
- Bureau of Meteorology
- Primary Industries Research Victoria
- Australian National University.
Policies and Measures no longer in Place
As noted earlier in this chapter, the Government's 2002 climate change policy package included the introduction of a carbon tax from 2007. Associated Negotiated Greenhouse Agreements were available for firms that met a competitiveness-at-risk test whereby, in exchange for relief from the proposed carbon tax, firms would agree to move towards world's best practice in emissions intensity. Following a full policy review commissioned by Cabinet in mid-2005, the Government announced in December 2005 that the previously announced carbon tax, and associated Negotiated Greenhouse Agreements, would not proceed. The Government is implementing a work programme to develop alternative measures to the announced carbon tax, including consideration of emissions trading and new, possibly voluntary, arrangements to replace Negotiated Greenhouse Agreements.
