Making the ‘Just Transition’ to lower emissions work May 2018

The impacts can only be managed if we work together We support a ‘just transition’ to a lower-emissions economy and we are part of the solution To make it work there needs to be a consensus between workers, our industry and Government The offshore exploration permit decision will have material impacts on: Energy security Economic opportunity New Zealand’s reputation as an investment destination Certainty and stability from the Government will help manage these adverse impacts A ‘Whole of Government’ approach working with us, not against us is required

We are important to New Zealand

We are reducing emissions Opportunities to reduce CO2 emissions ?

There are risks to New Zealand’s energy security ?

There will be financial impacts to New Zealand

Emissions will undoubtedly rise

More stability and certainty from Government will help manage impacts Crown Minerals Act to maximise workability and flexibility for existing permits EEZ activity status Carbon capture and storage and associated carbon credits for sequestration Letter of guarantee to existing permit holders Seismic survey rules Statement of intention from 2020 for onshore exploration Marine Protected Areas Non-resident tax status for offshore operators Role of gas in New Zealand’s energy security and affordability Incentives/tax efficiency to encourage drilling of existing permits Enforce existing rules e.g. non-interference zone Onshore financial assurance National direction to Councils Whole of Government approach to sector

Questions for the Government Is the goal of this policy to lower emissions; if so, how does it achieve this? What are the plans for managing the energy security consequences? How will the Government reduce the damage already caused to New Zealand’s reputation as an investment destination? Can you assure us that you will reach consensus with our industry and workers on the plan for a ‘just transition’ to a lower emissions economy? Are there any circumstances in which offshore exploration permit issuing could resume?

Recap: the impacts can only be managed if we work together We support a ‘just transition’ to a lower-emissions economy and we are part of the solution To make it work there needs to be a consensus between workers, our industry and Government The offshore exploration permit decision will have material impacts on: Energy security Economic opportunity New Zealand’s reputation as an investment destination Certainty and stability from the Government will help manage these adverse impacts A ‘Whole of Government’ approach working with us, not against us is required