Kicking the Carbon Habit Jeanette Fitzsimons, Co-leader March 2007 Green Party of Aotearoa New Zealand

A Framework for : how we interact with Kyoto system how we share costs and benefits more details in energy and transport policies Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

International build on Kyoto framework reduce emissions at least 60% by 2050 move towards country obligations based on equal per capita entitlements to carbon Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

New Zealand: Who Pays? New Zealand: Who Pays? emitters to cover taxpayers liability in 2012 all sectors to face world carbon price at least at margin those with most options and least cost move fastest move towards global integrated trading system post 2012 Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Energy and Transport Fossil fuel importers and miners purchase Kyoto emissions units to cover total emissions from their fuels during KP1 ( ) and transfer to government …. Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Energy and Transport …. except for their sales to electricity generators, who must purchase and remit units to cover their fuel burn. Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Advantages neither carbon charge nor emissions trading, but best of both worlds effect for consumers same as carbon charge – simple begins trading at world price but at level of large firms only Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

More Advantages: links NZ economy with world price of carbon, which we must pay in 2012 can be implemented this year using mechanisms designed for carbon charge drives (and funds!) energy efficiency and renewable energy NZ in better position for KP2 Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Agriculture far fewer options - needs protection but continued growth in dairying unsustainable anyway so face carbon price only for emissions growth Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Agriculture Kyoto units must be remitted to govt only for emissions in KP1, which are above 1990 levels growth is mainly dairy industry, and deer. Sheep and beef have not grown. liability at level of processor, not farmer Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Processors have choices: purchase units overseas purchase units from emissions reduction in NZ plant forests provide N-inhibitors to farmers best placed to find cheapest option Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Forestry credits are NOT a property right only exist if others don't deforest but post-1990 foresters should get some payment for storing carbon treat forestry industry as a whole forest credits earned for NZ used for benefit of forestry industry Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Forestry - getting the incentives right Credits used to fund payments to Kyoto forests less than value of carbon for 5 years of KP1 surrendered with interest if deforested later Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Forestry - getting the incentives right Credits used to fund …. replanting incentive for pre-Kyoto forests harvested in KP1 bonus for species diversity surrendered with interest if deforested later Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Forestry - getting the incentive right Credits used to fund …. R&D to benefit forest industry eg: use of forest residues for energy promoting wood as replacement for steel and cement Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Forestry - getting the incentives right carbon payment for deforestation of pre-1990 forests not more than half value of carbon Govt covers cost of any deforestation on land returned under Treaty settlement Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Reducing land conversion mix of carrot and stick forester faces loss of replanting incentive, plus deforestation payment still less than full price of carbon Fonterra faces carbon price for emissions from new dairy farm Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Gross effect on Crown revenue (Mt CO2e) Kyoto assigned amount307 Remitted by energy sector193 Remitted by agriculture 38 Total units held538 Less 2012 liability398 Gross holdings140 (based on 2006 govt projections for ) Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Other benefits to Crown additional profits from electricity SOEs saves $600m already appropriated to part cover 2012 liability Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Revenue recycling All revenue from surplus credits, SOE profits and budget savings must be recycled into reducing emissions and assisting those at risk. Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

"Competitiveness at Risk" industries "Competitiveness at Risk" industries cement, steel, aluminium must use carbon in process other energy intensive industries also face international competition from non-Kyoto countries (eg wood processing) Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

"Competitiveness at Risk" industries Government uses surplus credits to assist with cost of up to 90% of emissions during KP1 provided plant upgraded to world best practice, and independently verified must still face carbon price at margin transitional until competitors also face carbon price Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Technology development Credits fund: wide range of R&D to reduce emissions more "Projects to reduce emissions" bidding rounds conserve and increase carbon in soils energy efficiency, renewable energy, rail development, coastal shipping etc (NZEECS) Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Assisting households Credits fund: home insulation, clean efficient heating, solar, etc big expansion in public transport information, education Tax adjustments Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Effects on consumers higher energy/fuel prices repaid twice over: removes tax liability funds programmes to lower their energy bills Green Party Climate Change policy, March 2007, Jeanette Fitzsimons Co-leader

Turn Down the Heat