Transcript presentation - Green Party of Aotearoa New Zealand

Kicking the
Carbon Habit
Green Party of Aotearoa New Zealand
Jeanette Fitzsimons, Co-leader
March 2007
A Framework for :
• how we interact with Kyoto system
• how we share costs and benefits
• more details in energy and
transport policies
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
International
• build on Kyoto framework
• reduce emissions at least 60% by
2050
• move towards country obligations
based on equal per capita
entitlements to carbon
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
New Zealand: Who Pays?
• emitters to cover taxpayers liability in
2012
• all sectors to face world carbon price at
least at margin
• those with most options and least cost
move fastest
• move towards global integrated trading
system post 2012
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Energy and Transport
Fossil fuel importers and miners
purchase Kyoto emissions units to
cover total emissions from their
fuels during KP1 (2008-12) and
transfer to government ….
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Energy and Transport
…. except for their sales to
electricity generators, who must
purchase and remit units to cover
their fuel burn.
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Advantages
• neither carbon charge nor
emissions trading, but best of both
worlds
• effect for consumers same as
carbon charge – simple
• begins trading at world price but at
level of large firms only
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
More Advantages:
• links NZ economy with world price of
carbon, which we must pay in 2012
• can be implemented this year using
mechanisms designed for carbon charge
• drives (and funds!) energy efficiency and
renewable energy
• NZ in better position for KP2
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Agriculture
• far fewer options - needs protection
• but continued growth in dairying
unsustainable anyway
• so face carbon price only for
emissions growth
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Agriculture
• Kyoto units must be remitted to
govt only for emissions in KP1,
which are above 1990 levels
• growth is mainly dairy industry, and
deer. Sheep and beef have not
grown.
• liability at level of processor, not
farmer
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Processors have choices:
• purchase units overseas
• purchase units from emissions
reduction in NZ
• plant forests
• provide N-inhibitors to farmers
• best placed to find cheapest
option
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Forestry
• credits are NOT a property right
• only exist if others don't deforest
• but post-1990 foresters should get
some payment for storing carbon
• treat forestry industry as a whole
• forest credits earned for NZ used
for benefit of forestry industry
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Forestry - getting the
incentives right
• Credits used to fund payments to
Kyoto forests
• less than value of carbon
• for 5 years of KP1
• surrendered with interest if
deforested later
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Forestry - getting the
incentives right
Credits used to fund ….
• replanting incentive for pre-Kyoto
forests harvested in KP1
• bonus for species diversity
• surrendered with interest if
deforested later
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Forestry - getting the
incentive right
Credits used to fund ….
• R&D to benefit forest industry eg:
• use of forest residues for energy
• promoting wood as replacement
for steel and cement
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Forestry - getting the
incentives right
• carbon payment for deforestation
of pre-1990 forests
• not more than half value of carbon
• Govt covers cost of any
deforestation on land returned
under Treaty settlement
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Reducing land conversion
• mix of carrot and stick
• forester faces loss of replanting
incentive, plus deforestation
payment
• still less than full price of carbon
• Fonterra faces carbon price for
emissions from new dairy farm
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Gross effect on Crown revenue
2008 - 2012 (Mt CO2e)
Kyoto assigned amount
307
Remitted by energy sector
193
Remitted by agriculture
38
Total units held
Less 2012 liability
538
398
Gross holdings
(based on 2006 govt projections for 2008 - 2012)
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
140
Other benefits to
Crown
• additional profits from electricity
SOEs
• saves $600m already appropriated
to part cover 2012 liability
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Revenue recycling
All revenue from surplus credits,
SOE profits and budget savings
must be recycled into reducing
emissions and assisting those at
risk.
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
"Competitiveness at
Risk" industries
• cement, steel, aluminium must use
carbon in process
• other energy intensive industries
also face international competition
from non-Kyoto countries (eg wood
processing)
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
"Competitiveness at
Risk" industries
• Government uses surplus credits to
assist with cost of up to 90% of
emissions during KP1
• provided plant upgraded to world best
practice, and independently verified
• must still face carbon price at margin
• transitional until competitors also face
carbon price
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Technology
development
Credits fund:
• wide range of R&D to reduce emissions
• more "Projects to reduce emissions"
bidding rounds
• conserve and increase carbon in soils
• energy efficiency, renewable energy, rail
development, coastal shipping etc
(NZEECS)
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Assisting households
Credits fund:
• home insulation, clean efficient
heating, solar, etc
• big expansion in public transport
• information, education
• Tax adjustments
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Effects on consumers
• higher energy/fuel prices
• repaid twice over:
• removes tax liability
• funds programmes to lower their
energy bills
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader
Turn Down the Heat
Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader