VIA suggests cheaper electricity, carbon tax and more for ERP

Plenty of cheap, green electricity and introducing a universal carbon tax which could become a “carbon dividend” putting money into KiwiSaver accounts will help New Zealand’s transition from fossil fuels.

So says the Imported Motor Vehicle Association Incorporated (VIA) in essentially proposing a universal version of the “feebate” scheme for vehicles whereby early adopters and adherents would be rewarded and emitters penalised in its submission on the proposed Emission Reduction Plan (ERP).

“The most important thing government can do to promote electrification across every industry is to increase the cost discrepancy between using electricity and using fossil fuels,” VIA’s submission says.

Plentiful, cheap and green electricity would also attract international businesses with the promise of carbon neutral electricity while proving a “significant boon” to the domestic economy and even potentially shifting the country’s export profile away from agriculture.

That’s according to VIA senior policy advisor and submission master-mind Kit Wilkerson who says some land freed from agriculture could be used for forestry and native planting to help offset carbon emissions.

Wilkerson believes the ERP consultation document lacks definitive targets and vision, simply stating that there will be many differences in 2050 but not outlining in more detail what New Zealand could be like then.

And he suggests big emitting companies should carry the cost rather than the general public for that transformation, adding that many such highly emitting firms are still heavily subsidised.

Any excess green energy New Zealand produces could be absorbed by a “sink” such as the Lake Onslow project, making green hydrogen (described as potentially the “oil” of the future), and sequestering atmospheric carbon – again using New Zealand’s technical prowess and providing that to the world to the benefit of New Zealand Inc.

“We want a pragmatic approach, not just an opportunity for the Government to collect money from New Zealanders,” Wilkerson says.

“We also want to see talk about making the country better to live in and how it deals with equity issues.”

Wilkerson says what VIA proposes would substantially help those on lower incomes, particularly in meeting their power bills and getting them into e-mobility and other e-technologies.

“Many people who drive internal combustion engine (ICE) vehicles today assume that since fuel prices have remained constant over time that that trend will continue. They don’t expect to be paying that much more in later years,” he adds.

“Price increases for fossil fuels should be planned and well telegraphed so that people know such fuels could be, say, 23% more expensive in five or so years.”

Wilkerson says political will is needed to make the changes, including making electricity cheaper so that more people opt out of fossil fuels for greener energy.

Behaviour change and education are the biggest parts of the puzzle, including combatting misinformation, VIA says.

Click here for the full VIA submission.