ETS now seems to be inevitable

ODT graphic by Hayden Smith.
ODT graphic by Hayden Smith.
Climate change is firmly on the election campaign agenda after New Zealand First and the Green Party this week backed Labour, allowing Prime Minister Helen Clark's prized emissions trading legislation to proceed through Parliament.

There was a sense of inevitability about the introduction to Parliament this week of the emissions trading scheme.

The Green Party was expected to back Labour's proposals with some face-saving amendments because the party had no choice if it wanted to be regarded as a serious environmental voice in the community.

Labour's continual backing of New Zealand First leader Winston Peters during a difficult week in Parliament saw the beleaguered MP throwing in the support of his party behind the legislation.

National MPs cried foul and said the whole issue smacked of backroom deals, and the party is pledging to do something about it.

For National to do anything about the issue, it has to win power at the election later this year, possibly on November 8.

Foul or not, the Climate Change (Emissions Trading and Renewable Preference) Bill will be law before the election.

Business opposition has been remarkably quiet in the capital, and that could be in the expectation that National will form the next government.

National has pledged to scrap Labour's legislation within nine months of taking office.

Why bother fighting the inevitable?

Federated Farmers was not taking any short cuts in its efforts to stop the legislation being agreed to.

Federation officials have been in the corridors of power lobbying the Greens, NZ First, Progressive Party leader Jim Anderton and, of course, the media.

Federated Farmers president Don Nicolson said the decision on the emissions trading scheme was rushed and made for the wrong reasons.

"These politicians seem to have forgotten that it is agriculture that is laying New Zealand's golden egg.

"Our farming communities are working very hard every day to produce the food and fibre that we sell to the world that helps pay many of New Zealand's bills.

"If we want to try and remain a first world, rather than a third world country, the simple fact is we need agriculture to prosper and grow.

"We can't afford to kill New Zealand's golden goose."

It was extremely disappointing that the Bill would now be passed.

The Federation would try to unbundle the mixed messages from the various parties that supported the Bill, and look at what actions it could take to reduce the damage.

The Federation would remain steadfast in its determination to get some common sense and practical solutions to the mess that this legislation now creates.

"If there is a bright side, it's not obvious right now," Mr Nicolson said.

However, the bright side for Mr Nicolson is that Miss Clark has ruled out any changes to the January 1, 2013 date when the agriculture sector comes into the scheme.

To help prepare the sector for entry into the scheme, the Government had developed, with the dairy industry and fertiliser companies, a heads of agreement which involved the industry and the Government working together to investigate and apply measures which would reduce nitrous oxide emissions from the dairy sector over the next five years, Miss Clark said.

"The Government has also agreed to support work which would help reduce overall greenhouse gas emissions in the broader agriculture sector prior to entry into the scheme."

A target had been set of reducing greenhouse gases from the agricultural sector of 300,000 carbon dioxide equivalent tonnes by 2013.

The Government would encourage research on, and experimentation with, a range of alternative technologies and farming practices, including low intensity farming, she said.

Chairman of fertiliser manufacturer Ravensdown, Bill McLeod, said the co-operative took environmental issues seriously, and believed nitrification inhibitors would play a major role in achieving the scheme's goal to reduce greenhouse gases.

Ravensdown's nitrification inhibitor eco-n, developed by Lincoln University, was proven to reduce greenhouse gases by up to 80%.

Sales of eco-n had grown steadily since its introduction five years ago.

It was currently used on 5% of New Zealand's dairy farm land and, with wider use, the product had the potential to significantly reduce gas emissions in New Zealand, he said.

The Green MPs negotiated a small win, in their view, for farming sector targets.

Co-leader Jeanette Fitzsimons said the investment in new technologies and practices to help reduce agricultural emissions would include not just nitrification inhibitors but also low-input farming which could be just as profitable; biogas plants to convert manure to energy; and methods to control soil damage in wet conditions such as herd homes and stand-off pads.

"We received a lot of feedback that many people are concerned the legislation provides no protection for areas of significant biodiversity, such as tussock and regenerating native forest, which might be converted to pines in order to earn credits."

The Government had now agreed to a gazetted timetable to develop and implement a national policy statement on biodiversity under the Resource Management Act.

Miss Clark announced a new free allocation of units had been introduced for the fishing sector, equal to 50% of the impact on fuel costs for a three-year period.

Coincidentally, Mr Anderton is Fishing Minister.

Mr Peters was able to announce that all those on low incomes, including New Zealand superannuitants who are his major support base, would receive front-loaded consumer price index adjustments to ensure they kept ahead of the projected cost of the scheme to their households.

"We have ensured that within the $1 billion energy efficiency fund available to all households, a dedicated portion will go to the SuperGold Card holder which will reduce their costs and create warmer, healthier homes."

The Government had agreed that the allocation plans for the industrial, stationary energy and agricultural sectors would be referred to a select committee for consideration, something for which both the Greens and NZ First claimed credit.

Miss Clark said the agreement package enabled New Zealand to take effective steps to reduce greenhouse gas emissions.

"Climate change is one of the greatest challenges facing our world.

"It is important that New Zealand shows leadership and shoulders its share of the responsibility for dealing with it.

"By making far-reaching and strategic changes to the way we live and work, we can reduce our greenhouse gas emissions while also maintaining a strong economy and comfortable lifestyle."

 

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