Proposed Emissions Trading Scheme is a bureaucratic indulgence

5/9/2008

9 May 2008

Deer Industry New Zealand is convinced that the proposed Emissions Trading Scheme (ETS) will not make any real difference to climate change while damaging the New Zealand economy. Deer Industry New Zealand believes there is a more pragmatic and meaningful way forward.

Mounting economic analysis shows that the proposed ETS will have a large, negative economic impact on New Zealanders’ wellbeing. For example:

·  New Zealanders’ electricity bills may rise by 20% (at $50 per tonne CO2e);
·  New Zealanders’ petrol may increase by 12.2 c per litre (at $50 per tonne CO2e);
·  Employment equivalent to 20,000 to 50,000 jobs may be lost from New Zealand;
·  Average household spending may decrease by 3,000 per annum in 2025;
·  Gross Domestic Product may decrease by $1,400 per person or $6 billion by 2025; and
·  Household costs potentially increase by around $19,000 per annum by 2025.

Some of these analyses suggest that the ETS will also do very little to getting New Zealand any closer to carbon neutrality, or making any discernible impact on global emissions.

Deer Industry New Zealand is convinced that New Zealand is heading down completely the wrong policy track by putting so much emphasis on an ETS. To make a real contribution to the mitigation of global climate change New Zealand should play to its strengths. While the major source of greenhouse gas emissions is the world’s use of fossil fuel, New Zealand’s economy is reliant on agriculture to produce food for the world’s consumers. The real challenge for New Zealand is to solve the challenges of methane and nitrous oxide emissions from agriculture. This would:

·  Reduce the 50% of New Zealand greenhouse gas emissions which New Zealand is liable for;
·  Make use of New Zealand’s very significant agricultural research & development capability;
·  Establish New Zealand as a preeminent research, development and adoption centre worldwide;
·  Make use of New Zealand’s significant agricultural infrastructure;
·  Make a real impact on global carbon emissions; and
·  Show real leadership to the rest of the world in the fight against climate change.

The fact is that solving the issues of methane and nitrous oxide emissions is a huge challenge – it is battling evolution. It would require:

·  A whole-of-government commitment and whole-of-industry commitment to successfully find and implement a solution to agricultural greenhouse emissions;
·  A focus of people and financial resources on finding solutions; and
·  Creativity.

What we currently have are industries, NGOs and government all pushing their own agendas rather than focusing on the challenge of climate change. The huge amount of time being expended on an ETS is a distraction and will not achieve what is required. True leadership would guide all parties to focus on the problem of agricultural greenhouse gas emissions and the solutions to them. The current efforts are piecemeal and partisan.

Deer Industry New Zealand will be making an oral submission to the Finance and Expenditure Select Committee for the Climate Change (Emissions Trading and Renewable Preference) Bill alongside Meat and Wool New Zealand and Meat Industry Association on 12 May.

Deer Industry New Zealand is established under the Deer Industry New Zealand Regulations 2004 to promote and assist the development of the deer industry in New Zealand. The New Zealand deer industry produces export returns of over NZ$300 million per annum.

For further information contact:

John Scurr
Chairman
Deer Industry New Zealand
DDI: (03) 443 9555
Mob: 021 919 931

Mark O’Connor
CEO
Deer Industry New Zealand
DDI: (04) 471 6113
Mob 021 743 624