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A group of companies with a stake in New Zealand's financial and environmental reputation is putting its combined weight behind a new Asia Pacific carbon market. The group has prepared a report entitled “Report into the Feasibility of a New Zealand Carbon Market”, which it presented to the Prime Minister, Minister of Finance and Minister for Climate Change Issues and Energy today.
The group comprises CEOs and senior executives from Air New Zealand, 42 Below, Fonterra, McKinsey, Infratil, the New Zealand Institute, the New Zealand Rugby Union, PricewaterhouseCoopers, Vector, Meridian, Contact Energy, ABN AMRO and Goldman Sachs JBWere. Government agencies with an interest in carbon emissions reduction and economic impacts have provided advice.
They have been working since December 2006 to determine the technological and financial infrastructure, expertise, international linkages and other factors that will combine to establish a successful carbon market for the Asia Pacific region in New Zealand.
“It is a proven fact that efficient carbon markets do change emitting behaviour. Businesses and governments around the world are recognising that,” said NZX CEO and Carbon Market Working Group member Mark Weldon.
“New Zealand businesses have been relatively slow to see the realities of a commercial world where carbon credits have an ongoing value, and how they can be used not only to change their own emissions profiles, but also for their own business benefit,” said Weldon.
The Working Group believes that it is important to recognise that carbon is actively traded as a commodity in developed markets around the world. As such there is room for voluntary participation in a carbon trading scheme prior to 2012.
“Voluntary markets are growing and giving companies the ability to take early action on greenhouse gases that has genuine emission reduction impacts. A voluntary carbon market can complement a compliance regime, so businesses can understand this evolving market and the potential for them to engage with it,” said PricewaterhouseCoopers Head of Climate Change Services and Carbon Market Working Group member Julia Hoare.
The view of the Working Group is that most New Zealand businesses are concerned about the negative impact of the possible imposition of carbon charges.
“We don't believe that climate change is an issue we can ignore. New Zealand 's 100 percent pure image is critically important to our nation's future and prosperity,”” said Air New Zealand CEO and Carbon Market Working Group member Rob Fyfe.
“But New Zealand must take the opportunity to shape our market before another country imposes its own shape on us,” said Fyfe.
In addition, New Zealand has an opportunity to place its environmental stamp on carbon credits generated locally, creating a commodity that will be in demand in other markets because of its quality and credibility.
“Fear tactics and dire predictions of cost impositions are doing nothing to prepare New Zealand businesses for the reality of the future,” said Mark Weldon.
“It's time we stopped talking about threats and started seeing the very real opportunities that carbon trading presents to our businesses, regardless of size, and our national economy.”
NOTE: The Working Group expressly excluded from its terms of reference both the science of climate change and any debate around the optimum design of a climate change policy framework in New Zealand.
