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Chapter 15: Information on minimisation of adverse impacts

This chapter provides information on New Zealand’s implementation of policies and measures that minimise adverse social, environmental and economic impacts on non-Annex I Parties, as required under Article 3.14 of the Kyoto Protocol.

15.1 Overview

New Zealand’s Cabinet and legislative processes to establish and implement climate change response measures include consultation with the Ministry of Foreign Affairs and Trade and with the public. The Ministry of Foreign Affairs and Trade provides advice to the Government on international aspects of proposed policies. During the public consultation phase, concerns and issues about the proposed measure can be raised by any person or organisation.

Through the New Zealand Government’s regular trade, economic and political consultations with other governments, including some non-Annex I Parties, there are opportunities for those who may be concerned about the possible or actual impacts of New Zealand policies to raise concerns and have them resolved within the bilateral relationship. To date, there have been no specific concerns raised about any negative impact of New Zealand’s climate change response policies.

The New Zealand Government, through New Zealand’s International Aid and Development Programme (www.nzaid.govt.nz), has regular Official Development Assistance programming talks with partner country governments, where partners have the opportunity to raise concerns about any impacts and to ask for or prioritise assistance to deal with those impacts.

New Zealand’s International Aid and Development Programme also works with partner developing countries to strengthen governance and enabling environments. This improves their ability to respond to changing circumstances. As a member of the Pacific Islands Forum, New Zealand works closely with non-Annex I Parties in the Pacific in a wide range of technical, economic and political fields, addressing concerns that are raised in the regional context.

New Zealand maintains a liberalised and open trading environment, consistent with the principles of free trade and investment, ensuring that both developed and developing countries can maximise opportunities in New Zealand’s market regardless of the response measures undertaken.

15.2 Market imperfections, fiscal incentives, tax and duty exemptions and subsidies

Annex I Parties are required to report any progressive reduction or phasing out of market imperfections, fiscal incentives, tax and duty exemptions and subsidies in all greenhouse gas emitting sectors, taking into account the need for energy price reforms to reflect market prices and externalities.

New Zealand does not have any significant market imperfections, fiscal incentives, tax and duty exemptions and subsidies in greenhouse-gas-emitting sectors of this nature.

15.3 Removal of subsidies

Annex I Parties are required to report information concerning the removal of subsidies associated with the use of environmentally unsound and unsafe technologies. New Zealand does not have any subsidies of this nature.

15.4 Technological development of non-energy uses of fossil fuels

Annex I Parties are required to report on cooperation in the technological development of non-energy use of fossil fuels and support provided to non-Annex I Parties. The New Zealand Government has not actively participated in activities of this nature as yet.

15.5 Carbon capture and storage technology development

Annex I Parties are required to report on cooperation in the development, diffusion and transfer of less-greenhouse-gas-emitting advanced fossil fuel technologies, and/or technologies relating to fossil fuels that capture and store greenhouse gases, and encouragement of their wider use; and facilitating the participation of non-Annex I Parties.

New Zealand is a member of the United States-led Carbon Sequestration Leadership Forum (www.cslforum.org), the Australian-led Global Carbon Capture and Storage Institute (www.globalccsinstitute.com) and the International Energy Agency Greenhouse Gas Research and Development Programme (www.ieaghg.org).

15.6 Improvements in fossil fuel efficiencies

Annex I Parties are required to report how they have strengthened the capacity of non-Annex I Parties identified in Article 4.8 and 4.9 of the Climate Change Convention, by improving the efficiency in upstream and downstream activities related to fossil fuels and by taking into consideration the need to improve the environmental efficiency of these activities.

New Zealand, through the Ministry of Economic Development, has worked with the Tuvalu Electricity Corporation to help provide higher quality electricity services at the lowest costs to consumers. This project has included a review and identification of demand-side management and renewable energy opportunities, developing methods for the Tuvalu Electricity Corporation to evaluate solar photovoltaic options, feasibility studies on the use of copra oil and wind for electricity generation and identification of opportunities for increased energy efficiency.

The training/capacity building component of the project means that the Tuvalu Electricity Corporation can improve its service itself and be less dependent on external consultants. As well as identifying key renewable energy options for Tuvalu, the project developed methods through which the Tuvalu Electricity Corporation could evaluate renewable energy options itself. By considering the overall design of the electricity system, and making recommendations on corporate management, the project may also help to ensure the continued economic viability of Tuvalu’s electricity company.

The project recommended a number of ways that Tuvalu can reduce its reliance on diesel generation through increased use of wind, copra oil, biogas and energy-efficiency technologies.

Depending on the outcome of the project, increased use of renewable energy and energy-efficiency measures will reduce Tuvalu’s use of diesel for electricity generation and reduce greenhouse gas emissions.

15.7 Assistance to non-Annex I Parties dependent on the export and consumption of fossil fuels for diversifying their economies

Annex I Parties are required to report on assistance provided to non-Annex I Parties that are highly dependent on the export and consumption of fossil fuels in diversifying their economies. This is one of the objectives of the International Partnership for Energy Development in Island Nations (www.edinenergy.org). New Zealand is a member of the International Partnership for Energy Development in Island Nations alongside the United States of America and Iceland.

The International Partnership for Energy Development in Island Nations provides:

  • sound policies to help remove barriers to clean energy development and create incentives for growth
  • financing resources to attract private capital and project developers to islands for renewable energy and energy-efficiency projects
  • clean energy technologies by helping to develop a knowledge base through technical assistance and training, and by promoting the transfer of new renewable energy and energy efficiency technologies into the marketplace.