KEY POINTS:
Gary Taylor, of the Environmental Defence Society, wrote praising companies in the energy-intensive sector for their efforts to reduce their carbon footprint. It is praise well deserved because emission reductions have been impressive.
But he also criticised their membership of the Greenhouse Policy Coalition, accusing the coalition of
trying to block the proposed emissions trading scheme.
We think it is more important that New Zealand introduce quality policy design for an emissions trading scheme, rather than rush to have any emissions trading scheme in place regardless of unintended and potentially severe economic consequences. We see this as a responsible response, not a kneejerk one.
The Greenhouse Policy Coalition has always advocated the adoption of climate change policies that will result in a good environmental outcome, while allowing for continued economic growth in New Zealand.
We think that for any climate change policy to be affordable and sustainable it must deliver on both counts. Where we think a policy falls short and there has been a lack of robust economic analysis - we will speak up and point this out.
Indeed we released the report The New Zealand Emissions Trading Scheme - How do we make it work? last year to assist in the adoption of a sustainable emissions trading scheme - hardly the actions of the irresponsible.
The Greenhouse Policy Coalition consistently offers policy solutions and believes all points of view must be heard in this very serious area. The policies adopted will hit the back pocket of every person in New Zealand and we need to understand what is being proposed, how much it will cost and what it will achieve for the global environment.
The warnings about widespread job losses if the current bill goes ahead without significant changes are not "make believe" - they are real.
The Greenhouse Policy Coalition undertook a survey of 41 companies from a wide range of sectors and many respondents were not members of the coalition.
The results were sobering and showed a real risk of economic pain. From those 41 companies alone, job losses would be close to 3000 and at $30/tonne carbon these firms will be collectively facing increased costs of $257 million. It does not take rocket science to work out these results. You merely increase the cost of fuel by the price of carbon and the energy costs go up accordingly.
If your trading competitors fail to adopt a similar price of carbon, you are in trouble.
There are huge question marks about which companies will be entitled to free allocation of units to ensure they remain competitive in New Zealand and what sort of allocation each company will get.
We fear that as the Emissions Trading Bill stands, most energy-intensive companies will be exposed to a carbon price that will make them unprofitable, leading to those companies that can relocating overseas and taking their jobs with them.
As the Emissions Trading Bill currently stands, there will be no new energy-intensive investment in New Zealand - the price of carbon will prohibit it.
Senator Penny Wong, Australian Minister responsible for emissions trading, said "emissions trading will be one of the most far-reaching and complex reforms in Australian history".
The same is true for the New Zealand economy and we must ensure that such significant economic reforms receive the careful scrutiny they deserve.
The Greenhouse Policy Coalition and other business industry associations have made clear the policy requirements of a successful emissions trading scheme - we just need the Government to listen. See www.greenhousepolicy.org.nz for more information.
* Catherine Beard is executive director of the Greenhouse Policy Coalition.
