Climate Change Response Bill 2002

By AUDREY YOUNG

Description

The first piece of legislation establishing new powers and procedures related to the Kyoto Protocol to reduce greenhouse gas emissions. Other laws will follow- including a carbon tax on fossil fuels and industrial emissions, expected to increase petrol by 6c a litre and household power bills by 9 per cent.

Progress: The bill passed its third and final reading on Wednesday night.

Labour and the Greens supported the bill, with a total of 61 votes. The Progressive Coalition supported it, but was not in the House to vote. National, New Zealand First, Act and United Future, with 56 votes, opposed the bill.

Aim: To set up structures for the new carbon trading system, created by the Kyoto Protocol. The agreement aims to reduce greenhouse gas emissions of developed countries between 2008 and 2012 on average to 1990 levels. Greenhouse gases are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride.

How it works: Countries can use credits from forests, which soak up carbon dioxide, to reduce their obligations to cut emissions. This means some countries, such as New Zealand, can end up in credit.

How it affects us: In 1990 New Zealand emitted the equivalent of 73 million tonnes of carbon dioxide (mainly methane and nitrous oxide from animal "outputs", which are translated by formula into the currency of the new trade, carbon dioxide). Since 1990, emissions have risen to the equivalent of 79 million tonnes.

If trading were to start now, New Zealand's aim would be to cut emissions by 6 million tonnes.

But plantings put New Zealand in credit. By the time trading starts, it will have carbon credits to sell to other countries who need to get rid of a carbon debt.

One Government MP estimated New Zealand could make $200 million to $300 million.

The case against: Opposition MPs argue that the carbon-reduction measures will be hugely damaging to the economy, are unfair and will have very little effect. Critics also say the tax burden will be carried by those who are least to blame, such as medium sized businesses.

The Government response: Ministers have decided agriculture will be exempt from the emissions charge in the first commitment period provided farmers start research to reduce agricultural emissions, which make up 55 per cent of New Zealand's estimated emissions.

And large carbon-emitting companies such as Comalco and New Zealand Steel will be able to opt out of all or part of the emissions charge.

THREE VIEWS


Pete Hodgson, Labour


"The Kyoto Protocol is the only international agreement that offers any hope of progress. That progress will initially be modest, but it will be progress. The alternative is none.

"We will be putting this nation in a position to make a measured transition to a carbon-constrained economy.

"Some of our industries face competition from countries that will not have emissions targets in the protocol's first commitment period.

"We have designed our domestic climate-change policies to protect the interests of those industries and the economy while ensuring our emissions target can still be met."

Ken Shirley, Act


"I question the science of human-induced climate change. The protocol is unfair, it won't work and it will be very damaging to the economy.

"There won't be reinvestment in our industries like the cement and steel industry. They are likely to relocate to Indonesia, Malaysia and the Philippines that won't be subject to carbon tax regimes.

"The Government has essentially appropriated the forestry carbon credit from private owners. They are stealing a property right and will use it to shield farmers and protect key industries."

Jeanette Fitzsimons, Greens

"The Kyoto Protocol is all there is. It is the international agreement that will limit climate change and while we don't agree with all the provisions of it, to not support ratification would take us back to square one.

"There are those who say we should not ratify it until absolutely every other country has. That would make us very bad global citizens.

"It's really important that we add our weight, small as it is, to the global consensus to make binding measures to reduce our greenhouse emissions."

Further reading
nzherald.co.nz/climate

Climate change links

nzherald.co.nz/environment