4. Policies and measures

Figure 4.3:  An example of a vehicle fuel economy label

Read a text description

Fuel economy information must be displayed for all light vehicles (ie, cars, utilities and vans under 3.5 tonnes) whenever it is available. The information should be available for most vehicles manufactured after 2000. It is not required for motorcycles or vehicles over 3.5 tonnes.

Biofuels

To ensure equal incentives for different types of biofuels between now and 2012, the Government is providing a grant to biodiesel producers. This grant is designed to be equivalent to the petrol excise duty exemption currently in place for bioethanol. NZ$36 million has been allocated to the grant scheme over three years, starting in July 2009.

Electric vehicles

In June 2009, the Government passed legislation to provide an exemption from road-user charges for electric vehicles from October 2009 until July 2013. This was done in recognition of the role electric vehicles will play in assisting with the reduction of greenhouse gas emissions from the transport sector. Combining highly efficient electric motors with New Zealand’s competitive advantage in renewable electricity generation will reduce the greenhouse gases produced by the transport sector as well as harmful emissions that affect air quality.

Other transport measures

Fleet Best Practice Programme

Commercial vehicle fleet fuel efficiency was a significant area of New Zealand-based research during 2008. The research culminated in two reports: Fleet Commitment Initial Work Programme Trial,by the Transport Engineering Research New Zealand Limited, and Survey on Fleet Fuel Efficiency in the Heavy and Light Commercial Vehicle Fleet, by Kissling Consulting Limited (NZ) and Imise Limited (UK). These reports are available on the Ministry of Transport website.⁵⁴

The research recommended that a New Zealand Fleet Best Practice Programme be developed. As the first stage, the Ministry of Transport, in conjunction with the New Zealand Transport Agency, is converting the UK Safe and Fuel Efficient Driver training programme to a New Zealand-based curriculum for heavy and light commercial vehicle fleets. Associated activities include the development of tip booklets and videos, additional New Zealand-based research to tailor driver training and fuel efficiency driving technique for the New Zealand fleet, training for driver trainers and driver training.

Public transport

Public transport will continue to play a growing role in the success of our cities and the wider economy by contributing to economic growth and productivity.

The Government is committed to continuing public transport funding. For example, the Government provided NZ$500 million for the electrification of the Auckland rail network. The purchase of electric trains to run on the new network will also be supported by the Government. Including this project, the Government will invest a total of NZ$1 billion in Auckland’s rail network.

The Ministry of Transport is also examining ways to increase the productivity and efficiency of the public transport system. The main focus is looking at how to remove barriers to greater efficiency that have been identified by key stakeholders. Examples of these barriers include delays in the renewal of passenger class driver licences and buses losing time when re-entering heavy traffic from bus stops.

4.3.4    Industry

The main government policy aimed at reducing greenhouse gases from industrial sites is the New Zealand Emissions Trading Scheme (NZ ETS). Industrial processes will enter the scheme from July 2010 and will be required to surrender one emission unit for every two tonnes of CO₂ equivalent emissions until 2013. From 2013, the sector will be required to surrender one unit for each tonne of emissions. The synthetic gases perfluorocarbons, hydrofluorocarbons and sulphur hexafluoride will be included in the scheme from 2013.

The Ministry for the Environment is responsible for developing policy on industrial emissions in New Zealand. In addition to the NZ ETS, the Ministry continues to run the ‘No Loss Campaign’ with the refrigeration industry. This policy minimises the loss of refrigeration gases. Please refer to New Zealand’s Fourth National Communication for details on this initiative.

4.3.5    Agriculture

At present there are limited methods for reducing nitrous oxide emissions from agricultural pastures, and no practical methods for mitigating methane for enteric fermentation in ruminants. New Zealand is a lead player internationally on researching effective mitigation technologies that will reduce ruminant greenhouse gas emissions. The Ministry of Agriculture and Forestry (MAF) is responsible for setting agricultural policy in New Zealand.

Global Alliance on agricultural emissions

In September 2009, the New Zealand Prime Minister announced a proposal to establish a Global Alliance on agricultural greenhouse gas mitigation research. The initiative would bring interested countries together to drive greater international cooperation, collaboration and investment in this area of research. In this way, the Global Alliance aims to help reduce emissions from agricultural production and improve its potential for soil carbon sequestration, while safeguarding food security.

Primary Growth Partnership (PGP)

The PGP is a government–industry initiative, which provides investment in significant programmes of research and innovation to boost the economic growth and sustainability of New Zealand’s primary, forestry and food sectors. The PGP covers:

• pastoral (including wool) and arable production
• horticulture
• seafood (including aquaculture)
• forestry and wood products
• food processing (including nutriceuticals and bioactives).

The PGP will provide funding of no less than $500,000 over the lifetime of the programme, which must be matched by industry co-investors. In 2009, the Government increased the funding for the PGP from $30 million for 2009/10 to $70 million per annum from 2012/13.

Centre for Agricultural Greenhouse Gas Research

A key programme under the PGP is the establishment of the Centre for Agricultural Greenhouse Gas Research, which has been allocated NZ$5 million of the PGP funding each year. It will be 100 per cent government-funded, with no requirement for industry co-funding and a commitment to 10 years’ core funding.

Research will focus on ruminant methane, nitrous oxide and soil carbon in the pastoral and horticultural sectors. The aim of the research will be to promote technologies that both reduce emissions and improve on-farm efficiency and productivity.

Pastoral Greenhouse Gas Research Consortium (PGGRC)

The PGGRC is a partnership between the Government and the dairy and fertiliser industries, formed in 2002. The role of the PGGRC is to coordinate the agricultural sector’s programme of research into the abatement of agricultural non-carbon dioxide gases. The aim of the partnership is to provide livestock farmers with the information and means to mitigate their greenhouse gas emissions. The scope of the programme is broad, and includes research into the options to improve the production efficiency of ruminant animals. For more information on the PGGRC, see New Zealand’s Fourth National Communication.

Industry funding is matched by the Government through the Foundation for Research, Science and Technology. Between 2001 and 2008 the PGGRC invested more than NZ$19 million in research on the production of methane and nitrous oxide from grazing livestock.

Sustainable Land Management and Climate Change Plan of Action

For New Zealand, the agriculture and forestry sectors are critical in responding to climate change because of their contribution to New Zealand’s greenhouse gas emissions profile, and importance to the New Zealand economy. In September 2007, the Government outlined an integrated package for the land-based sectors called the Sustainable Land Management and Climate Change Plan of Action (the Plan of Action). The Plan of Action is a $175 million work programme work the Government is running in partnership with the land management sectors, local government and Māori.

The Plan of Action has three broad workstreams:

• adaptation
• reducing emissions and enhancing sinks
• business opportunities.

Initiatives and programmes under the three work areas are supported by research and a communications and technology transfer programme.

Sustainable Land Management and Climate Change Plan of Action Research Programme

The research programme will focus on the development of new technologies and practices for the measurement and mitigation of greenhouse gas emissions, adaptation and cross-cutting issues. The research programme has been allocated NZ$55 million of government funding. A working group has been set up with representatives from the land management sectors, local government and Māori, to refine the Strategic Research Framework and identify priorities for funding. The working group coordinates a process with other government agencies, research providers, the agriculture and forestry sectors, Māori, and local government to identify these priorities.

In addition to the contestable research programme above, research programmes have also been carried out in the following areas:

• farm-level greenhouse gas reporting using the Overseer nutrient budget model
• bioenergy and biochar research and development
• national nitrification inhibitor research
• national agriculture and forestry inventory development
• life-cycle analysis for a number of industry sectors and products.

Examples of programmes under the Plan of Action are described below.

Research programme to improve agricultural and forestry inventories

The Government is providing national greenhouse gas inventory research grants. The aim of the grants is to improve the accuracy of New Zealand’s agricultural greenhouse gas inventory to, reduce uncertainty in the greenhouse gas inventory, and to incorporate the effects of mitigation technologies. More than $2 million has been allocated to specific research proposals.

Greenhouse gas footprinting

The New Zealand Greenhouse Gas Footprinting Strategy for the Land-based Primary Sectors is a plan for developing tools to accurately measure and represent the greenhouse gas footprint of New Zealand produce. The strategy also encourages New Zealand primary producers to participate in greenhouse gas measurement and enhance their greenhouse gas performance.

The development of sector-specific approaches (“sector methodologies”) to greenhouse gas footprinting involves working with primary sector early adopters to develop comprehensive methods for measuring greenhouse gas emissions across the supply chain of a primary product. The method for a specific industry (eg, kiwifruit) can then be used to facilitate the development of methods for the wider sector (eg, horticulture). This approach aims to help sectors to measure, manage and mitigate greenhouse gas emissions across the supply chain.

Biochar professorships

Biochar is created by a similar process to that used to make charcoal. The resulting charcoal-like material is a form of semi-permanent carbon storage. The Government is funding two professorships to promote the study and development of this technology. Each of these professorships will be funded for four years and are supported by one-off grants of $1.25 million in 2009/10 for research, laboratory equipment and facilities.

Nitrification inhibitors

A significant area of investment for the PGGRC has been a three-year trial of nitrification inhibitors. The aim of the trial is to provide independent verification of the role these inhibitors play in reducing the environmental impacts of farming practices. The research aims to:

• determine the best management practice for the use of nitrification inhibitors in New Zealand grazing systems
• improve understanding of the potential for nitrification inhibitors to improve a broad range of environmental outcomes, including those related to water quality and greenhouse gas emissions
  assess the ability of nitrification inhibitors to reduce nitrous oxide emissions
• promote uptake by farmers by providing scientifically sound information on the productivity advantages, potential cost reductions and environmental benefits of using nitrification inhibitors.

In New Zealand’s 2009 national greenhouse gas inventory submitted under the Convention and the Kyoto Protocol, the agricultural sector incorporated the use of nitrification inhibitors.

Livestock Emissions and Abatement Research Network (LEARN)

In November 2007 New Zealand established LEARN, an international research and collaboration network with the aim of improving measurement of and reducing greenhouse gas emissions from livestock. The network now involves more than 300 researchers from 47 countries.

The objectives of LEARN are twofold: to improve understanding, measurement and monitoring of methane and nitrous greenhouse gas emissions from animal agriculture at all scales; and to facilitate the development of cost-effective and practical greenhouse gas mitigation solutions.

The Government will offer up to nine New Zealand LEARN fellowships a year for scientists or technicians from developing countries to work in New Zealand to gain experience in addressing livestock emissions. More information on the LEARN programme is contained in chapters 7, 8 and 9.

Other research

In addition to the above research areas, the Ministry of Agriculture and Forestry also leads a research fund that contributes towards the Plan of Action goals. Priorities are set in consultation with researchers, land-based sectors, and Māori. To date research has included agricultural emissions, modelling, forestry rates and carbon sequestration.

Farm monitoring

The farm monitoring programme models the production and financial status of farms, orchards and vineyards throughout New Zealand.

The aim of the programme is to analyse the relationship between financial results and the sustainability, productivity and adaptability of the different sectors. As part of this programme, AgResearch (a Crown research institute) won a NZ$4 million tender to develop a software package (called Overseer) that enables the modelling of pastoral greenhouse gas emissions at the farm level.

Technology transfer

A technology transfer programme has been developed to encourage the land management sector to adopt greenhouse gas emissions mitigation technologies and land management practices.

The programme will include:

• coordination of government and industry activities
• communication of information on mitigation and adaptation to climate change
• demonstrations of new greenhouse gas emissions mitigation technologies and practices
• education and capacity-building, including industry training and tertiary education.

One example is the resource kit Adapting to Climate Change in Eastern New Zealand: A Farmer Perspective. It contains case studies at both the farm level and the regional level, and looks at adaptations to, and solutions for coping with, climate change in the Hawke’s Bay region of New Zealand.

4.3.6 Forestry

The New Zealand Emissions Trading Scheme (NZ ETS) is the main policy instrument to encourage afforestation and reduce deforestation. In addition to the NZ ETS, New Zealand has three major schemes that promote afforestation and provide incentives to maintain forests. These are detailed in the section below. The Ministry of Agriculture and Forestry (MAF) is responsible for developing forestry-related policy.

In New Zealand, commercial timber harvested from private native forest was restricted to that sourced under sustainable forest management plans and permits by a 1993 amendment to the Forests Act 1949. Only a few areas were exempt from the Act. Amendments in March 2002 resulted in the cessation of any logging of native forest on public land. Less than 0.1 per cent of New Zealand’s total forest production is now harvested from native forests.

East Coast Forestry Project

The East Coast Forestry Project aims to encourage an additional 200,000 hectares of commercially productive forest to be planted (through to 2020) on eroding and erodible land in the East Coast region of the North Island. Land owners in specific areas tender for government grants, which help to fund the cost of establishing and managing forest on eroding and erosion-prone land. The project allows a range of treatments to be applied to erosion-prone land, including commercial forestry, poplar and willow planting, and the ability to set aside areas for the regeneration of native forest.

Although the main purpose of this project is to reduce erosion, the project also enhances the sequestration of carbon in forest sinks. The project has been running since 1992, and 33,000 hectares of forest are now covered by the scheme.

Afforestation Grant Scheme

The Afforestation Grant Scheme aims to increase the area of Kyoto-compliant forest in New Zealand. Kyoto-compliant forest refers to areas of forest planted after 1 January 1990 on to land which was non-forest land as at 31 December 1989. The scheme offers a simpler alternative to the NZ ETS for landowners with small tracts of forest. The Afforestation Grant Scheme is a part of the Sustainable Land Management and Climate Change Plan of Action (the Plan of Action).

Under the Afforestation Grant Scheme, landowners can receive a government grant for establishing new forests on Kyoto-compliant land (that is, land that was not forested as at 31 December 1989). Recipients of the grant own the new forests and earn income from the timber, while the Crown retains the Kyoto removal units (and liabilities) generated during the 10-year period of the grant agreement. A secondary objective of the scheme is to establish this new forest in areas where it will help reduce the likely impacts of climate change, and generate other environmental benefits such as reduced erosion, nutrient leaching and flood peaks; and improved indigenous biodiversity.

The Afforestation Grant Scheme is a contestable fund. Half of the funding is available to regional councils to help them meet their sustainable land management objectives; the other half is available to the general public via a public tender pool.

The majority of this public funding pool (70 per cent) is allocated to species that have high sequestration rates, eg, Pinus radiata and Douglas fir. The remaining 30 per cent of these public funds are reserved for species with low carbon sequestration rates, such as indigenous species. Although these species grow more slowly, they promote greater biodiversity and provide habitats for threatened native birds and plants.

There are currently 96 participants in the scheme, with 29 participants in the public pool and 67 in the regional council pool.

Permanent Forest Sinks Initiative

The Permanent Forest Sinks Initiative promotes the establishment of permanent forests on previously unforested land. It offers landowners the opportunity to earn assigned amount units for carbon sequestered in permanent forests established after 1 January 1990. The initiative is principally designed to allow greater economic benefit to be derived from land, especially marginal land that would have little other economic use. The Permanent Forest Sinks Initiative is a part of the Plan of Action, that also includes the Afforestation Grants Scheme.

Under the initiative, participants enter into an agreement with the Government to plant and manage forests on their land. Participants will have a covenant registered against their land titles for a minimum of 50 years. This covenant will ensure the forests are (semi-) permanent. Under the covenant, only limited harvesting is allowed, and this is only permitted on a continuous forest canopy cover basis. By putting the requirements in a covenant on the title to the land, the forest sink will still remain even if the land is sold.

In return, landowners who meet the requirements receive tradeable assigned amount units, which they are free to sell in either the domestic or international carbon market. The amount of units received is equal to the increased carbon dioxide stored in the forest for the period between 2008 and 2012.⁵⁶ Units will not be transferred to landowners until verification of the amount of increased carbon dioxide stored in the forest has occurred.

The Government announced the Permanent Forest Sinks Initiative in August 2006, and the first covenants under the scheme were registered in August 2008. Twenty-two applications have been received, covering 5493 hectares of forest land.

Increasing the use of wood as a construction material

The Ministry of Agriculture and Forestry has developed the following initiatives to increase the use of wood as a construction material:

• commissioned full life-cycle analysis research that showed that wood-based building products have a lower greenhouse gas footprint than other construction materials
• provided seed funding in the form of two professorship positions to teach and research the use of timber in building design, and to reduce barriers to the increased use of wood as a construction material
• funded a design competition and provided support for the construction of a multi-storey timber-based building that will be available as a demonstration building for teaching purposes
• funded demonstration buildings that showcase the construction of wooden sustainable buildings. The initiative includes partial funding to construct in wood up to two government buildings that would ordinarily be built in concrete and steel. Funding will also be available for education and research on the demonstration buildings
• developed a website, funded under the Forest Industry Development Agenda (FIDA) / NZWood initiative, to provide ready access to technical information on building using wood.

4.3.7 Waste

The New Zealand Waste Strategy (launched in 2002) set in place a framework for minimising and managing waste, and included targets for reducing waste. The major piece of legislation that governs waste management in New Zealand is the Waste Minimisation Act 2008. The Ministry for the Environment is responsible for developing waste policy in New Zealand alongside local and regional councils.

New Zealand Waste Strategy

The New Zealand Waste Strategy aims to lower the social costs and risks from waste, reduce the damage to the environment from waste generation and disposal, and increase economic benefits by encouraging more efficient use of materials. Reducing the quantity of waste produced has the co-benefit of reducing emissions of landfill-gas (methane) at waste disposal sites. Progress against the targets was reviewed in 2003 and the strategy as a whole was reviewed in 2006. The strategy and targets are being revised in light of the 2006 review and a new strategy will be published in 2009.

Waste Minimisation Act 2008

The Waste Minimisation Act (2008):

• established a waste levy on all waste going to municipal landfills
• established a process for making the development of product stewardship schemes mandatory (for certain products)
• allows for mandatory waste reporting
• clarifies the roles and responsibilities of territorial authorities with respect to waste minimisation
• established the Waste Advisory Board to provide advice to the Minister for the Environment.

Operators of waste disposal facilities are required to pay a waste levy on all waste disposed of at their facility (currently set at NZ$10 a tonne in September 2009). Approximately half of the levy money is allocated to territorial authorities to spend on implementing their waste management and minimisation plans. The remaining levy money (minus administration costs) is allocated to waste minimisation projects through the Waste Minimisation Fund.

National Environmental Standard for Landfill Methane

The National Environmental Standard (NES) for Landfill Methane requires landfill sites with a design capacity greater than one million tonnes of refuse to collect and destroy methane emissions. It is part of a suite of 14 standards on air quality. The NES was reported on comprehensively in the Fourth National Communication.

4.4 Policies and measures no longer in place

The following policies and measures that were reported on in the Fourth National Communication, are no longer in place.

Mandatory biofuels sales obligation

In December 2008, the Government repealed the biofuels sales obligation, opting instead for incentive-based measures. This was due to concerns that much of the biofuel necessary to meet the obligation would have been imported from environmentally unsustainable sources that encouraged deforestation and reduced biodiversity.

Projects to reduce emissions programme

The Projects to Reduce Emissions programme has been discontinued. Existing agreements with project participants are being honoured and these abatement projects are progressing, but no new agreements are being made. The Projects to Reduce Emissions programme was developed to complement the proposed carbon tax that has since been replaced with an emissions trading scheme.

Communities for Climate Protection

The Communities for Climate Protection programme (CCP) encouraged local government to reduce emissions in their own operations. Until June 2009, this programme was funded by the Ministry for the Environment. However, funding was not available for the 2009/10 financial year, and the programme is no longer running.

Local government bodies are still encouraged to reduce emissions, and many of the same agencies that assisted local government to reduce emissions under the CCP programme are still doing so (such as the EECA, and the Ministry for the Environment)