1. Foreword
Climate change is a serious global problem, which is galvanising countries, communities, and businesses around the world to take action.
New Zealand, too, must play its part. New Zealand’s biologically based economy is vulnerable to the impacts of climate change. It threatens the future of our economy, environment and way of life.
Measures to reduce emissions are part of the government’s wider objectives to ensure our economy remains competitive and sustainable into the future.
No matter what happens with the Kyoto Protocol, New Zealand needs to prepare for a world in which a cost is attached to greenhouse gas emissions. This is not a New Zealand government initiative; it is an international reality.
The cost arises from reducing greenhouse gas emissions, whether this is achieved through regulation, price-based instruments or other measures. While action to reduce greenhouse gas emissions will have a moderate cost, the predicted costs and risks of inaction are higher.
In the long term, action is needed across the economy. In the short term, actions to reduce emissions will be specific to each sector.
This discussion document deals with short-term measures to reduce greenhouse gas emissions in the energy sector. It is part of the draft New Zealand Energy Strategy – Powering Our Future - and suggests ways in which the energy sector can make the transition to broad based measures proposed for the long term. These are described in the discussion document Measures to Reduce Greenhouse Gas Emissions in New Zealand Post-2012.
Transitional Measures provides technical detail on how we can move to a low emissions energy system, which will provide our economy with an enduring competitive advantage.
I believe this will be cheaper for New Zealand than for any other country. New Zealand has a long tradition of providing much of our energy from local renewable sources. Already, about 70% of our electricity is generated from renewable sources – the third highest level in the developed world.
This is a tradition we want to build on. We as New Zealanders take pride in our natural environment, and we have a reputation for developing resourceful, innovative and pioneering solutions. This is another step towards our long-term aspiration of becoming carbon neutral in the energy sector.
I look forward to receiving your feedback on New Zealand’s future energy path.
Hon David Parker
Minister Responsible for Climate Change Issues
