‘Temporary speed bump’

Businesses do not have the luxury to ignore climate change, BusinessNZ head of climate change policy John Carnegie says.

The decision by United States President Donald Trump to leave the Paris Agreement on climate change was a "temporary speed bump" in continuing to create a resilient economy.

"Tackling climate change remains in New Zealand’s long-term interests. We need to continue to progress the transition to a low-carbon economy in new and innovative ways."

That may look different from what it was before the US pulled out of the Paris Agreement, depending on what transpired. But BusinessNZ’s goal remained the same, he said yesterday.

Mr Trump caused global dismay when he announced the US would withdraw from the landmark 2015 global agreement to flight climate change.

He spurned pleas from US allies and corporate leaders in an action that fulfilled a major campaign pledge to save American jobs.The US was one of 195 nations that agreed to the accord in Paris in December 2015. But Mr Trump said the accord would: "undermine our economy, hamstring our workers, weaken our sovereignty, impose unacceptable legal risk and put us at a permanent disadvantage to the other countries of the world".

"We don’t want other leaders and other countries laughing at us any more. And they won’t be."

Under the pact, which was years in the making, nations both rich and poor committed to reducing emissions of so-called greenhouse gases generated by burning fossils fuels. The New Zealand Sustainable Business Council said the move was disappointing but it would not stall the momentum in the business community to lower emissions.

Forward-thinking businesses understood climate change presented a major risk to their business, council executive director Abbie Reynolds said.

Businesses, governments and civil society in New Zealand and around the world had already put climate change at the core of their strategies and actions.

"They don’t have the luxury of ignoring climate change. They know they have to transition to a low-emissions economy."

There were opportunities presented in the Paris Agreement. Sustainable practices boosted resilience to future shocks and encouraged greater innovation, Ms Reynolds said.

Mr Carnegie warned the next steps needed to be cautious. It would not be business as usual but he expected momentum to continue.

"The fact this move has happened supported cautious, carefully thought-out policy.

"More than ever, we need to be mindful of the international competitiveness of New Zealand exporters, as well as delivering what global consumers want."

The New Zealand Science Media  Centre asked climate change experts to talk about the implications of the US leaving the Paris Agreement.

Professor James Renwick, from the School of Geography, Environment and Earth Sciences, at Victoria University, said it was a backward step but it was hardly game over for the agreement or climate change.

"The US could stay in and do nothing, which would be as unhelpful as pulling out."

The US stepping away from Paris handed the opportunity to China, the European Union and others to take the lead. That was already happening.

Prof Renwick understood China was already developing an agreement with the EU to push harder on emissions reductions.

The President, and Washington, were not the US. Individual cities and states were doing their own thing.

California Governor Jerry Brown had already signalled he was looking intentionally for partners to push emissions reductions.

The US was pulling back from global leadership and other nations would step in to take over, Prof Renwick said.

"This move may, in fact, signal the start of China’s real dominance of international affairs.

"Climate change is an incredibly pressing problem. If we are to live up to the Paris agreement, the global community has somewhere between five and 20 years to move on significant reductions."

Every nation must strive to lead on the issue, even if the US was not there. New Zealand and other countries must step up, he said.Tesla chief executive Elon Musk said he would leave White House advisory councils after Mr Trump’s decision.

"Climate change is real. Leaving Paris is not good for America or the world," Mr Musk said in a tweet.

General Electric chief executive Jeff Immelt said he was disappointed.

"Climate change is real. Industry must now lead and not depend on government."

Green Party co-leader James Shaw said New Zealand should join with China, the European Union and other countries promising to accelerate efforts to reduce climate pollution.

The Government should not use the US decision as an excuse to continue to do nothing on climate change, or worse to justify plans to open new coal mines and expand risky oil and gas exploration in New Zealand waters.

"There is simply too much at stake in New Zealand for us to sit on our hands and do nothing. Climate change will see our farmers facing longer, more severe droughts and all of us experiencing more frequent intense storms and flooding."

Prime Minister Bill English must voice New Zealand’s concerns in the strongest possible terms when US Secretary of State Rex Tillerson visits Wellington next week, Labour leader Andrew Little said.

"Bill English must take a strong stand next week and ensure Rex Tillerson knows the damage that’s been caused to the international campaign by the US’ withdrawal."