NZ welcomes the APEC energy working group
We greatly value the opportunity to host EWG 33 this year and to assist the EWG to successfully advance its valuable ongoing programme of work.
Address to the 33rd meeting of the APEC Energy Working Group welcome dinner
7.30 pm, 28 March 2007, Hyatt Regency, Auckland
I am delighted and honoured to welcome you to New Zealand for the 33rd meeting of the APEC Energy Working Group this evening.
We greatly value the opportunity to host EWG 33 this year and to assist the EWG to successfully advance its valuable ongoing programme of work. In particular, we are aware of the important role that EWG 33 will play as part of the lead up to the 8th Energy Ministers' Meeting in Darwin this May.
This meeting couldn't be timelier for us, as we are currently finalising the New Zealand Energy Strategy, which aims to address the twin challenges faced by New Zealand of energy security and climate change; challenges which are also faced by economies across the Asia-Pacific region.
I note that the theme for the APEC Energy Ministers' Meeting in May is 'Responding to a World of Higher Oil Prices and Environmental Challenges: Energy Security through Efficiency and Diversity'.
New Zealand recognises the importance of diversity in the energy system, and as such, our strategy's emphasis will be on security of supply through utilising a range of energy sources, with a strong focus on renewables.
Environmental sustainability will be achieved through a combination of clean energy technologies, renewables, and energy efficiency.
More than simply addressing these challenges, in her recent speech to Parliament, the Prime Minister raised the bar - suggesting that New Zealand become the first country that is truly sustainable, and that New Zealand aspire to become carbon neutral over time.
Already we have pledged to have six government departments carbon neutral by 2012, with others on a path to carbon neutrality by the same date.
And I am delighted to see corporate organisations following suit, such as Meridian Energy, Contact Energy, BNZ, and Grove Mill winery.
New Zealand Energy Strategy
Our vision is for a reliable and resilient system, delivering New Zealand sustainable, low emissions energy.
We plan to do this by:
Providing clear direction on the future of our energy system
Maintaining high levels of security and reliability at competitive prices
Maximising how efficiently we use our energy to safeguard affordability, economic productivity and our environment
Maximising the proportion of energy that comes from our abundant renewable energy resources
Reducing our greenhouse gas emissions
Promoting environmentally sustainable technologies.
The impact of unmitigated climate change is a serious issue facing all countries.
Given the imperative for the world to reduce greenhouse gas emissions, and the likelihood that emissions will carry an economic cost to our country in the future, it is vital that we alter our growing energy emissions.
In New Zealand we have a long tradition of providing much of our energy from local renewable sources.
Already, about 70 percent of our electricity is generated from renewable sources - the third highest level in the developed world.
The New Zealand Energy Strategy will help us do even better with electricity, and make important progress with transport over the next 30 to 50 years.
The strategy will aim to ensure that New Zealanders reap the benefits of a sustainable low-emissions energy system, which will provide our economy with an enduring competitive advantage.
I also expect that this transition will be cheaper in New Zealand than in almost any other country in the world.
Our abundant sources of renewable energy mean that New Zealand is already a leader in sustainable energy, and the strategy will enable us to sustainably reduce our total carbon dioxide emissions from energy.
The strategy will show how New Zealand can start moving towards carbon neutrality over the long term.
For the first time in our history since industrial development began here, it will set New Zealand on a path, which will enable us to sustainably reduce our total CO2 emissions from energy.
New Zealanders have a proud history of fast deployment of innovative and pioneering solutions.
These qualities will be valuable as we respond to the energy challenges and opportunities of the future.
We want to protect our environment for future generations, and reinforce the values that New Zealanders share.
We all have a stake in where our energy comes from, how we use our energy, and the impact that our energy choices have on the world around us.
The challenge for the government is to persuade all New Zealanders, from the largest corporate organisation to each individual energy user, to recognise and accept the issues and do their bit to resolve them.
We released the strategy as a consultation draft during December, and plan to publish the final document during the middle of this year.
The draft sets out an overall policy architecture which divides the future into two phases:
A transitional period that runs from now to 2012
And then the period after 2012 which marks the end of the first Kyoto commitment period.
It focuses on three key areas:
Principles for carbon pricing and trading
Reducing carbon emissions from stationary energy
Tackling the transport challenge.
In the first phase, the strategy will focus on options for reducing the carbon emissions from electricity and transitioning to greenhouse gas pricing in the stationary energy sector, including electricity generation.
Putting a cost on carbon emissions from electricity generation will provide an incentive to develop renewable energy sources, as well as managing the energy we use more effectively.
Additional measures to drive a big increase in renewable energy and energy efficiency will also deliver significant co-benefits such as industry development, insulated, warmer homes and healthier families.
Where transport is concerned, a broad range of measures will start to deal with what would otherwise be a rapid escalation of transport carbon emissions.
These will include the introduction of a biofuels sales obligation from 2008, tougher fuel efficiency standards for imported vehicles, compulsory fuel efficiency information at point of sale, and more support for public transport.
In addition to biofuels, I am very interested in battery-power vehicle technology, which is charging ahead internationally. I expect that within the next decade we will see the start of the deployment of cars using electricity as their main source of energy.
Once it starts, deployment will be rapid, given the low fuel cost compared with traditional liquid fuels. This will be especially true of city car fleets and will bring significant reductions in CO2 emissions and smog reduction as particulate emissions reduce.
The potential goes beyond the commuter car fleet. I suspect few of you will be aware that New Zealand is a leader in hybrid and plug-in electric city buses. Designline is a USA/New Zealand-owned company based in Ashburton, in New Zealand's South Island. It has been developing hybrid buses for many years. It now produces leading edge hybrid buses, which are certified for use in Europe, Japan, Australia, USA and NZ.
These buses are not only cost-competitive, they are also remarkably environmentally friendly. Some models are driven by batteries, which are recharged by a very small diesel, LPG or CNG generator. For example a small Volkswagen diesel running at a constant and efficient rate provides sufficient electrical recharge to keep these buses running on their batteries all day everyday. Fully electrical buses with a range of 150 km before recharge are now being produced for Adelaide, Australia.
If we can make our vehicles more efficient and encourage more public transport use, we'll reduce roading and vehicle owner costs.
Increased efficiency and fuel substitution will also reduce our reliance on imported oil and provide a bit of a buffer to volatile oil prices.
Greenhouse gas pricing will eventually extend into other sectors.
This will drive changes across production and consumption activities, and encourage investments towards those activities with lower carbon intensities.
New Zealand Energy Efficiency and Conservation Strategy
In concert with the draft New Zealand Energy Strategy, we recently launched a draft New Zealand Energy Efficiency and Conservation Strategy, or NZEECS, which is a detailed action plan to maximise energy efficiency and renewable energy in New Zealand.
The NZEECS outlines detailed actions to achieve energy savings in sectors such as homes, products, industry and vehicles.
Conclusion
We are not alone in making efforts to diversify energy sources away from an over-reliance on fossil fuels to a more sustainable energy future.
New Zealand's welcomes the focus of APEC economies on energy security through efficiency and diversity.
I wish you an enjoyable stay in New Zealand and we look forward to working with you to achieve APEC's goals for the region.
Address to the 33rd meeting of the APEC Energy Working Group welcome dinner
7.30 pm, 28 March 2007, Hyatt Regency, Auckland
I am delighted and honoured to welcome you to New Zealand for the 33rd meeting of the APEC Energy Working Group this evening.
We greatly value the opportunity to host EWG 33 this year and to assist the EWG to successfully advance its valuable ongoing programme of work. In particular, we are aware of the important role that EWG 33 will play as part of the lead up to the 8th Energy Ministers' Meeting in Darwin this May.
This meeting couldn't be timelier for us, as we are currently finalising the New Zealand Energy Strategy, which aims to address the twin challenges faced by New Zealand of energy security and climate change; challenges which are also faced by economies across the Asia-Pacific region.
I note that the theme for the APEC Energy Ministers' Meeting in May is 'Responding to a World of Higher Oil Prices and Environmental Challenges: Energy Security through Efficiency and Diversity'.
New Zealand recognises the importance of diversity in the energy system, and as such, our strategy's emphasis will be on security of supply through utilising a range of energy sources, with a strong focus on renewables.
Environmental sustainability will be achieved through a combination of clean energy technologies, renewables, and energy efficiency.
More than simply addressing these challenges, in her recent speech to Parliament, the Prime Minister raised the bar - suggesting that New Zealand become the first country that is truly sustainable, and that New Zealand aspire to become carbon neutral over time.
Already we have pledged to have six government departments carbon neutral by 2012, with others on a path to carbon neutrality by the same date.
And I am delighted to see corporate organisations following suit, such as Meridian Energy, Contact Energy, BNZ, and Grove Mill winery.
New Zealand Energy Strategy
Our vision is for a reliable and resilient system, delivering New Zealand sustainable, low emissions energy.
We plan to do this by:
Providing clear direction on the future of our energy system
Maintaining high levels of security and reliability at competitive prices
Maximising how efficiently we use our energy to safeguard affordability, economic productivity and our environment
Maximising the proportion of energy that comes from our abundant renewable energy resources
Reducing our greenhouse gas emissions
Promoting environmentally sustainable technologies.
The impact of unmitigated climate change is a serious issue facing all countries.
Given the imperative for the world to reduce greenhouse gas emissions, and the likelihood that emissions will carry an economic cost to our country in the future, it is vital that we alter our growing energy emissions.
In New Zealand we have a long tradition of providing much of our energy from local renewable sources.
Already, about 70 percent of our electricity is generated from renewable sources - the third highest level in the developed world.
The New Zealand Energy Strategy will help us do even better with electricity, and make important progress with transport over the next 30 to 50 years.
The strategy will aim to ensure that New Zealanders reap the benefits of a sustainable low-emissions energy system, which will provide our economy with an enduring competitive advantage.
I also expect that this transition will be cheaper in New Zealand than in almost any other country in the world.
Our abundant sources of renewable energy mean that New Zealand is already a leader in sustainable energy, and the strategy will enable us to sustainably reduce our total carbon dioxide emissions from energy.
The strategy will show how New Zealand can start moving towards carbon neutrality over the long term.
For the first time in our history since industrial development began here, it will set New Zealand on a path, which will enable us to sustainably reduce our total CO2 emissions from energy.
New Zealanders have a proud history of fast deployment of innovative and pioneering solutions.
These qualities will be valuable as we respond to the energy challenges and opportunities of the future.
We want to protect our environment for future generations, and reinforce the values that New Zealanders share.
We all have a stake in where our energy comes from, how we use our energy, and the impact that our energy choices have on the world around us.
The challenge for the government is to persuade all New Zealanders, from the largest corporate organisation to each individual energy user, to recognise and accept the issues and do their bit to resolve them.
We released the strategy as a consultation draft during December, and plan to publish the final document during the middle of this year.
The draft sets out an overall policy architecture which divides the future into two phases:
A transitional period that runs from now to 2012
And then the period after 2012 which marks the end of the first Kyoto commitment period.
It focuses on three key areas:
Principles for carbon pricing and trading
Reducing carbon emissions from stationary energy
Tackling the transport challenge.
In the first phase, the strategy will focus on options for reducing the carbon emissions from electricity and transitioning to greenhouse gas pricing in the stationary energy sector, including electricity generation.
Putting a cost on carbon emissions from electricity generation will provide an incentive to develop renewable energy sources, as well as managing the energy we use more effectively.
Additional measures to drive a big increase in renewable energy and energy efficiency will also deliver significant co-benefits such as industry development, insulated, warmer homes and healthier families.
Where transport is concerned, a broad range of measures will start to deal with what would otherwise be a rapid escalation of transport carbon emissions.
These will include the introduction of a biofuels sales obligation from 2008, tougher fuel efficiency standards for imported vehicles, compulsory fuel efficiency information at point of sale, and more support for public transport.
In addition to biofuels, I am very interested in battery-power vehicle technology, which is charging ahead internationally. I expect that within the next decade we will see the start of the deployment of cars using electricity as their main source of energy.
Once it starts, deployment will be rapid, given the low fuel cost compared with traditional liquid fuels. This will be especially true of city car fleets and will bring significant reductions in CO2 emissions and smog reduction as particulate emissions reduce.
The potential goes beyond the commuter car fleet. I suspect few of you will be aware that New Zealand is a leader in hybrid and plug-in electric city buses. Designline is a USA/New Zealand-owned company based in Ashburton, in New Zealand's South Island. It has been developing hybrid buses for many years. It now produces leading edge hybrid buses, which are certified for use in Europe, Japan, Australia, USA and NZ.
These buses are not only cost-competitive, they are also remarkably environmentally friendly. Some models are driven by batteries, which are recharged by a very small diesel, LPG or CNG generator. For example a small Volkswagen diesel running at a constant and efficient rate provides sufficient electrical recharge to keep these buses running on their batteries all day everyday. Fully electrical buses with a range of 150 km before recharge are now being produced for Adelaide, Australia.
If we can make our vehicles more efficient and encourage more public transport use, we'll reduce roading and vehicle owner costs.
Increased efficiency and fuel substitution will also reduce our reliance on imported oil and provide a bit of a buffer to volatile oil prices.
Greenhouse gas pricing will eventually extend into other sectors.
This will drive changes across production and consumption activities, and encourage investments towards those activities with lower carbon intensities.
New Zealand Energy Efficiency and Conservation Strategy
In concert with the draft New Zealand Energy Strategy, we recently launched a draft New Zealand Energy Efficiency and Conservation Strategy, or NZEECS, which is a detailed action plan to maximise energy efficiency and renewable energy in New Zealand.
The NZEECS outlines detailed actions to achieve energy savings in sectors such as homes, products, industry and vehicles.
Conclusion
We are not alone in making efforts to diversify energy sources away from an over-reliance on fossil fuels to a more sustainable energy future.
New Zealand's welcomes the focus of APEC economies on energy security through efficiency and diversity.
I wish you an enjoyable stay in New Zealand and we look forward to working with you to achieve APEC's goals for the region.