9. NIKKI KAYE (National—Auckland Central) Link to this
to the Minister for Climate Change Issues
What reports has the Government received on the performance of the ETS and on trends in New Zealand’s greenhouse gas emissions?
Hon Dr NICK SMITH (Minister for Climate Change Issues) Link to this
Reports show that a reversal from deforestation to afforestation and a significant increase in renewable electricity, incentivised by the emissions trading scheme, have reduced New Zealand’s emissions for the first 2 consecutive years since 1990. Our emissions are 4 percent down on 2008 levels. This compares with a 23 percent increase in emissions during the period between 2000 and 2008. The report of the emissions trading scheme review panel led by the Hon David Caygill, released today, confirms the Government’s confidence in the emissions trading scheme as the most effective way for New Zealand to reduce emissions at least cost. The report also supports the 2009 changes in respect of industry allocations and recommends that no change be made to those provisions.
How has the electricity sector responded to the price signal of the emissions trading scheme, given that this sector has seen the largest increase in emissions—130 percent—since 1990?
Hon Dr NICK SMITH Link to this
Last year was the best for renewables in a decade, with 74 percent of generation being produced from hydro, wind and geothermal sources. In the last year, 1,340 megawatts of new renewable generation has been built—five times the level of the last average, when most of the new generation was, ironically, fossil fuelled. This shift is the product not just of the emissions trading scheme but also of the Government’s reforms to the Resource Management Act and the adoption of the National Policy Statement for Renewable Electricity Generation.