Big benefits from low-carbon development, report claims

Ganesh Nana.
Ganesh Nana.
A report into low-carbon development commissioned by a conservation group claims hundreds of jobs and tens of millions of dollars could be generated in the southern region without developing the coal industry.

The WWF-New Zealand-commissioned report, "A View to the South: Potential Low Carbon Growth Opportunities for the Southern Region Economy", was launched in Invercargill yesterday at a reception for business leaders, small business owners, councillors, politicians, residents and local environmental groups.

The group said it was concerned proposals to mine and process lignite coal in the southern region could set back national efforts to reduce greenhouse gas emissions, and commissioned the report to investigate the potential for lower-carbon economic development in the region.

The author of the report, Business and Economic Research Ltd (Berl) chief economist Dr Ganesh Nana, said the southern region had a wide range of economic development options available.

The report looked at four growth possibilities - forestry, horticulture, manufacturing and engineering, and education and training - that built on the region's known competitive advantages and land-based economy, and had the potential to be low carbon.

"What we found was that, with greater investment, all four sectors present opportunities for greater employment and GDP [gross domestic product] beyond the business-as-usual outcome," Dr Nana said.

Greater investment in forestry and wood processing could create 1180 full-time jobs over next 15 years, potentially adding $190 million in GDP to the southern economy, he said.

By 2026, an additional 820 jobs in engineering, 755 in education and training, and 540 jobs in the horticulture sector could be created, generating $115 million, $91 million and $67 million respectively, he said.

Green Party energy spokesman Gareth Hughes welcomed the report and said it clearly showed there were industries which could provide growth without significantly increasing greenhouse gas emissions.

WWF-New Zealand's climate change campaigner, Peter Hardstaff, said Southland people were facing challenging choices about ensuring social, economic and environmental wellbeing.

The report showed forgoing the "exploitation of fossil fuels" did not mean forgoing all jobs and having no livelihoods, but meant doing things differently, he said.

The group hoped the research would inform debate and aid decision-making on the future economic development choices available to the southern region, Mr Hardstaff said.

Lignite, or brown coal, is firmly in the spotlight, two companies proposing to mine the resource in Otago and Southland. State-owned enterprise Solid Energy and L&M Group are proposing to mine lignite in the area and convert it to diesel while Solid Energy has proposals for two other lignite-based products, briquettes and the nitrogen fertiliser, urea.

helena.dereus@odt.co.nz

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