Action needed now on low-emissions economy

Action is needed now for New Zealand to become a low-emissions economy.

So says climate change minister James Shaw following the Productivity Commission’s final report on the opportunities and challenges involved in such a move.

That also means continuing to drive the uptake of electric vehicles (EVs).

“The automotive industry is doing its bit, pushing hard for EVs,” VIA chief executive officer and ITS NZ chairman David Vinsen says.

“We’re also participating in the Government’s Electric Vehicle Programme Leadership Group and other initiatives.”

Shaw says he’s noted the Productivity Commission’s concern that New Zealand risks becoming a ‘dumping ground’ for inefficient, pollution-heavy vehicles.

“While more and more electric and ultra-efficient vehicles are being sold overseas, Kiwis aren’t getting access to the same range of vehicles here,” he says.

“The Government is looking at regulatory options to increase both the availability and affordability of efficient electric, petrol and diesel cars for New Zealanders.”

Shaw says the commission’s report makes clear that delaying action is likely to “make the transition more costly, more of a shock for communities, and will limit our options”.

The Government will now consider the commission’s report alongside more than 15,000 submissions on the Zero Carbon Bill, together with other advice on moving to a low emissions economy.

“Our next step is to provide a full cross-government response to the report in the coming months,” Shaw says.

”Early action will give communities the time, the tools, and the options to benefit from new economic opportunities that can come from this transition.”

Shaw says the report highlights many areas already being worked on, including establishing an independent Climate Change Commission and improving New Zealand’s Emissions Trading Scheme (NZETS).

“The commission recommends increasing resources for research and the Government has set a target that research and development should comprise 2% of GDP by 2027.

“That will be supported by the introduction of a new tax incentive for business research and development.

“Innovation and technology is also being encouraged through the Government’s Provincial Growth Fund, and will be further supported by the Green Investment Fund, which aims to encourage private capital for low-emissions projects.”
About $100 million of initial capital was committed to the Green Investment Fund in this year’s Budget.
“We are working to have the fund established by the end of the year,” Shaw says.
“This Government has an ambitious climate change work programme but we need to get the balance right; moving quickly enough to address climate change, while not moving so quickly that we put parts of our economy at risk.”