7. STEVE CHADWICK (Labour—Rotorua) Link to this
to the Minister of Energy
What reports has he received on measures to reduce New Zealand’s carbon footprint?
Hon DAVID PARKER (Minister of Energy) Link to this
I have received reports on progress at both a local and an economy-wide level. Locally, I congratulate my colleague Chris Carter on the new energy-efficient Department of Conservation building, which uses 40 percent less power than a conventional building. This translates to a very substantial 40 percent reduction in any energy-related emissions from the operation of the building. On an economy-wide basis, Holcim Cement, PricewaterhouseCoopers, and Greenpeace have all produced major contributions on emissions trading.
Aside from last week’s announcement by Meridian Energy about its carbon-neutral status and Contact Energy’s plans to spend nearly $2 billion on renewables, can the Minister inform the House about other measures being pursued in the energy sector to reduce New Zealand’s greenhouse gas emissions?
Yes, I can. Solid Energy is making a $2 million investment in clean-coal technology development in Australia as part of its push towards carbon neutrality, and both the public and private sectors are working to achieve lower greenhouse gas emissions. It seems clear that the Government’s clean-energy policies are creating a sustainable future for our children and for their children.
Hon Dr Nick Smith Link to this
Does the Minister accept the front page story in the Independent that quotes energy analyst Molly Melhuish and the Grey Power president as stating that the Minister’s energy strategy figures for the residential sector are all wrong and out by an order of magnitude; and how can New Zealanders take seriously this strategy if such basic pieces of energy data are grossly wrong?
I have not read that article. I will read it, but I do not think there are any major errors in the strategy.
Does the Government propose to implement measures such as a carbon tax as part of its quest to reduce our carbon emissions, and does the Minister agree that without the tax it will be impossible for New Zealand to achieve the Prime Minister’s goal of becoming carbon neutral?
We are presently consulting on a range of options as to how a price for emissions could be devolved in different parts of the economy. Some of the measures being consulted upon are emissions trading and other mechanisms including carbon taxes and regulatory measures. Those are not off the agenda; all of those things are still being consulted upon.
Is it true or false that clean-coal technology, when it finally arrives, will have more effect on reducing carbon dioxide emissions on a global basis than anything else we are doing in New Zealand?
It is certainly true that clean-coal technology is very important in terms of stationary energy emissions internationally, particularly in developing countries but also in the United States, Australia, and Europe. It seems very likely there will be a considerable price tag attached to future carbon capture and storage technology, which is at the heart of clean-coal technology. That, again, implies a comparative advantage for New Zealand, because we are not going to have nearly as much of that cost as Australia, the United States, Europe, and China. Virtually all of our trade competitors are facing higher costs.
I seek leave to table a 2006 report pointing out that without a carbon tax, the Government will fail to implement an effective climate change policy.