Two thirds of businesses fear emissions trading: Survey

The environment is highly valued by most Kiwi businesses but they don’t know how emissions trading will impact on them, and they are incredulous we might end up paying overseas interests to offset our carbon emissions.

“While most smaller businesses don’t know how emissions trading is going to impact, about two thirds (64 per cent) of a survey’s respondents recognize it poses a financial threat to them,” said Alasdair Thompson, chief executive of the Employers & Manufacturers Association (Northern).

“They fear that government policies designed to meet our global emission reduction targets could lead to their businesses losing profitability, becoming less sustainable, downsizing or even closing.

“The government has a lot more explaining to do over climate change policy.

“Virtually all respondents - 96 per cent - recognise the value of New Zealand’s green reputation as a great brand position for the nation’s trade and tourism.

“EMA conducted the member survey late September, early October to ask about business attitudes to climate change and emissions trading.

“The survey asked about business attitudes to the environment in general through to how the emissions trading will affect them.

“In a case of the cure being worse than the condition, 71 per cent believe the economic impacts of New Zealand adapting to climate change will be serious or extremely serious. But even more people - 84 per cent - think putting a price on carbon emissions would be serious or extremely serious for our economy.

“88 per cent were against buying carbon credits offshore to offset carbon emissions. We believe this means business will support alternative measures for New Zealand to play its part in reducing emissions and energy use rather than simply paying more for energy.

“74 per cent are concerned about environmental issues in general but less than half - 48 per cent – think climate change is a physical threat to the country. A greater number - 78 per cent - think their own businesses will not be directly affected by the physical impacts of climate change.

“Many respondents – 57 per cent - think the seriousness of climate change is exaggerated in the media.

“Separately from the survey, EMA has been asking members currently attending a round of briefings if they understand how the government’s proposed ETS will affect their businesses. The great majority on a show of hands are unsure.”