Budget must dump damaging fossil fuel subsidies

Increased subsidies for fossil fuels are fiscally irresponsible and pose a major threat to our clean, green reputation and our economy, Greenpeace says.

Greenpeace is calling on the Government to drop its focus on developing our fossil fuel resources and to place clean-tech and clean energy at the forefront of this year’s budget.

“According to the Government’s own leaked Energy Strategy, high oil prices are threatening New Zealand’s economic recovery, and energy security. Yet, the Government spends nearly a billion dollars a year in subsidies through the Emissions Trading Scheme, and plans to put another ten billion into new motorways, which will only increase our dependence on oil,” says Bunny McDiarmid, Executive Director of Greenpeace NZ.

Completing Auckland's CBD rail loop, and proactive investments in clean-tech industries are just two examples of how this budget could shape a low carbon and energy secure future for New Zealand.

“Around the world, investment in renewables continues to outstrip that of fossil fuels[1]. There’s a global cleantech race on, yet the Government is failing to grasp the opportunity to put New Zealand’s clean energy businesses in pole position,” says McDiarmid.

“If the Government is serious about economic growth, it must end these perverse fossil fuel subsidies and start investing in cleaner, smarter technologies,” she says.

Energy efficiency programmes like those run by the Energy Efficiency and Conservation Authority (EECA) are crucial to our future and pay for themselves many times over. Promoting efficient energy use and energy savings should be a core issue for any New Zealand Government as they are the most effective way to slash emissions and improve energy security.

"Our pristine environment is an asset held in trust for future generations, not a trust fund to be pilfered for short-term returns," McDiarmid says.

[1] Investment in renewable energy power capacity (excluding large hydro) in 2009 was comparable to that in fossil-fuel generation, at around US$100 billion each. If the estimated US$39 billion of investment in large hydro is included, then total investment in renewables exceeded that in fossil-fuel generation for the second successive year (http://uncsd.iisd.org/news/unep-releases-global-trends-in-green-energy-2009-reports/).