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2. Methodology

Most of the workshop was conducted in small break-out groups that considered particular sectors of the economy, listed below.

Stationary Energy

Electricity Supply & Demand

Transport

All transport modes

Land use

Dairy, Extensive Farming and Forestry

Industry

Chemicals, Metals, Ag & Forestry Processing, Mining, Fishing

Waste

Solid Waste

Services

Tourism and other services

There is some overlap between sectors, e.g. virtually all sectors use transport and energy. These linkages are noted where they have significant environmental implications.

For each sector, the workshop collected information and views on the following three questions:

1. How will activity in the sector change as a result of the ETS?

E.g. will output increase, decrease or be unaffected by the ETS? Will there be fuel-switching or changes in other inputs or production practices? What information is available to answer this question, where are the gaps in information and how could we get a better understanding?

2. What will be the domestic environmental effects of the changes referred to in (1)?

Where are these effects likely to be concentrated and when are they likely to occur? What information is available to answer this question, where are the gaps and how could we fill these gaps?

3. What additional policy measures might be needed to capture any potential positive effects and minimise potential negative effects of the ETS?

Response measures could well be outside of ETS design, and could include such things as additional monitoring and assessment, national policy statements or environmental standards under the RMA or other statutes, additional funding for new or existing programmes, additional research, moral suasion, etc.

Effects of the ETS and closely related policy measures are being assessed against a base case scenario based on environmental and resource management policies as at 1 Jan 2008. The closely related measures include the preference for renewable electricity generation capacity and the biofuel sales obligation among others. See Appendix 1 for a description of the policy scenario being assessed and the base case scenario. The assessment aims to identify effects from 2008 to 2020.

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