New reports help inform climate change policy

New reports released today on the economic and forestry aspects of climate change policy will help inform Government decisions on New Zealand’s 2020 emissions target and policy on emissions trading, Climate Change Minister Nick Smith says.

“We’ve got significant decisions to make on New Zealand’s 2020 target and on emissions trading that will have major environmental and economic consequences for many years to come.

Key conclusions from the NZIER-Infometrics report on the macro-economic impacts of climate change policy are that:

Costs range from $600, $1000, $1400 to $3000 per capita per year for 2020 emissions targets ranging from +15%, 0%, -15% to -40% relative to 1990 levels

Costs are significantly greater if there is no international trading

Costs are reduced by between a third and half if there is consistent action by other countries

New Zealand’s Gross Domestic Product continues to grow under all options.

“We need to be upfront with New Zealanders that climate change poses real risks and that addressing it comes with costs that this report helps quantify.

“The report highlights that getting too far ahead of other countries escalates the cost to New Zealand. The Government is also conscious that if we slip too far behind international efforts we damage our clean, green reputation and may put our export market access at risk.

Dr Smith also released the first data from the Land Use Carbon Analysis System (LUCAS) that reports on New Zealand’s forested area using satellite imagery.

“The Government has been cautious over New Zealand’s Kyoto balance and future targets because of the billion dollar plus variations each year in the estimates of forest areas. This satellite data is good news in that it accurately confirms the area of post-1989 forests as sufficient to offset New Zealand’s increase in emissions and meet our Kyoto obligations in the first commitment period from 2008-2012.

“These reports, alongside the public submissions that close this week on the 2020 target, will help ensure the Government makes a balanced and well-informed decision on climate change policy.”

The Government will announce its 2020 target prior to the next international climate change negotiations in Bonn, Germany on 10 August.

For a copy of the LUCAS report please go to:

http://www.mfe.govt.nz/publications/climate/stakeholder-progress-report/