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The place for NZ oriented news releases on climate change and related energy policy.
After Aqua: NZ's electricity future
Hon Pete Hodgson
Unsurprisingly, I thought I would begin by discussing Meridian's surprise announcement earlier this week that it was stopping work on Project Aqua.
I hope the conference organisers gave Keith Turner an extra sausage roll in appreciation of the extra interest and attention he generated for this event.
At over 500 megawatts, Project Aqua loomed large in this country's energy future, particularly because Meridian was confident it could be built affordably. It promised a large amount of competitively priced baseload generation, starting in about five years or so.
The carbon charge this Government's climate change policy envisages would add perhaps a cent to the unit cost of new gas generation and a cent-and-a-half per unit to the cost of new coal generation.
It will not radically alter the price differential between gas and coal. And it is a small variable compared to the level of uncertainty about wholesale gas prices, which are in the process of doubling and could rise still further.
Perhaps the industry's current tendency to focus on the prospect of a carbon charge arises from the superficially reasonable premise that, unlike the future price of gas, it is entirely within the Government's power to clarify what the charge will be.
We have provided some clarity by specifying that the charge will be no more than $NZ25 a tonne of carbon. Industry might want to think very carefully about what calls for more clarity might entail. A minimum charge? A fixed price now?
Those who wish that this would all just go away, or hope that it will if the Kyoto Protocol does not come into force, have missed a fundamental point about global energy politics.
Whether by Kyoto or some other mechanism, we are heading into what is now usually referred to as a carbon-constrained world. A price on carbon is being gradually and irreversibly embedded in the global economy.
New Zealand cannot shut itself off from this development. Attempting to do so would simply turn us into a museum for outdated energy technologies, just as we once managed to turn our nation into a quaint South Pacific car museum.
A carbon charge is not so much about pricing fossil fuels out of the market as about pricing alternative, low-emission and efficient energy technologies into it.
We might well see new coal-fired electricity generation built in New Zealand in the next decade. A carbon charge will not prevent that happening. It will simply ensure that the price we pay for that electricity will be a little more reflective of the environmental cost of choosing that source of energy.
Hon Pete Hodgson
Unsurprisingly, I thought I would begin by discussing Meridian's surprise announcement earlier this week that it was stopping work on Project Aqua.
I hope the conference organisers gave Keith Turner an extra sausage roll in appreciation of the extra interest and attention he generated for this event.
At over 500 megawatts, Project Aqua loomed large in this country's energy future, particularly because Meridian was confident it could be built affordably. It promised a large amount of competitively priced baseload generation, starting in about five years or so.
The carbon charge this Government's climate change policy envisages would add perhaps a cent to the unit cost of new gas generation and a cent-and-a-half per unit to the cost of new coal generation.
It will not radically alter the price differential between gas and coal. And it is a small variable compared to the level of uncertainty about wholesale gas prices, which are in the process of doubling and could rise still further.
Perhaps the industry's current tendency to focus on the prospect of a carbon charge arises from the superficially reasonable premise that, unlike the future price of gas, it is entirely within the Government's power to clarify what the charge will be.
We have provided some clarity by specifying that the charge will be no more than $NZ25 a tonne of carbon. Industry might want to think very carefully about what calls for more clarity might entail. A minimum charge? A fixed price now?
Those who wish that this would all just go away, or hope that it will if the Kyoto Protocol does not come into force, have missed a fundamental point about global energy politics.
Whether by Kyoto or some other mechanism, we are heading into what is now usually referred to as a carbon-constrained world. A price on carbon is being gradually and irreversibly embedded in the global economy.
New Zealand cannot shut itself off from this development. Attempting to do so would simply turn us into a museum for outdated energy technologies, just as we once managed to turn our nation into a quaint South Pacific car museum.
A carbon charge is not so much about pricing fossil fuels out of the market as about pricing alternative, low-emission and efficient energy technologies into it.
We might well see new coal-fired electricity generation built in New Zealand in the next decade. A carbon charge will not prevent that happening. It will simply ensure that the price we pay for that electricity will be a little more reflective of the environmental cost of choosing that source of energy.
Helen Clark says canning of Aqua does not mean NZ needs to use nuclear power or more coal fired stations
The Prime Minister has ruled out withdrawing from the Kyoto Protocol to facilitate the development of coal-fired power stations.
There are increasing calls for the Government to seriously consider coal as the solution to the nation's power problems, following the canning of Project Aqua.
Under the Kyoto Protocol on global warming, coal use would attract a carbon tax.
Helen Clark says New Zealand has already ratified the Protocol and that's that.
She says the Government sees Kyoto as a way of ensuring best practice in energy efficiency and renewable and clean technologies, which is the way of the future."
The Prime Minister has ruled out withdrawing from the Kyoto Protocol to facilitate the development of coal-fired power stations.
There are increasing calls for the Government to seriously consider coal as the solution to the nation's power problems, following the canning of Project Aqua.
Under the Kyoto Protocol on global warming, coal use would attract a carbon tax.
Helen Clark says New Zealand has already ratified the Protocol and that's that.
She says the Government sees Kyoto as a way of ensuring best practice in energy efficiency and renewable and clean technologies, which is the way of the future."
Ozone agreement faces challenge
The treaty has succeeded in reducing destruction of the ozone layer.
A plea by developed countries to be allowed to go on using a gas that destroys ozone is being debated at an international meeting in Canada.
They want the meeting of signatories to the ozone protection treaty, the Montreal Protocol, to allow continued use of methyl bromide.
Ozone rather than climate but.....
The treaty has succeeded in reducing destruction of the ozone layer.
A plea by developed countries to be allowed to go on using a gas that destroys ozone is being debated at an international meeting in Canada.
They want the meeting of signatories to the ozone protection treaty, the Montreal Protocol, to allow continued use of methyl bromide.
Ozone rather than climate but.....
Resource Management (Energy and Climate Change) Amendment Act 2004
The Resource Management (Energy and Climate Change) Amendment Act 2004 was passed on 26 February 2004, and came into force on 2 March 2004. This Act recognises the Government’s preference for national coordination of controls on greenhouse gas emissions and gives greater emphasis to climate change and energy matters in Resource Management Act planning and decision making.
The Resource Management (Energy and Climate Change) Amendment Act 2004 was passed on 26 February 2004, and came into force on 2 March 2004. This Act recognises the Government’s preference for national coordination of controls on greenhouse gas emissions and gives greater emphasis to climate change and energy matters in Resource Management Act planning and decision making.
EU draft rules threaten NZ carbon credit cash
Draft rules for the European Union's carbon credits market would exclude New Zealand's forest sink credits.
The rules proposed by the European Commission, and now adopted with some amendments by the European Parliament's environment committee, would shut out from the European emissions trading system credits arising from Kyoto forests - those planted since 1990 on land not previously forested - because 'they do not achieve permanent emission reduction from sources'. "
Draft rules for the European Union's carbon credits market would exclude New Zealand's forest sink credits.
The rules proposed by the European Commission, and now adopted with some amendments by the European Parliament's environment committee, would shut out from the European emissions trading system credits arising from Kyoto forests - those planted since 1990 on land not previously forested - because 'they do not achieve permanent emission reduction from sources'. "
Think-tanks want to bring US and Australia back into Kyoto
The Institute for Public Policy Research (UK), the Center for American Progress (US) and the Australia Institute yesterday launched an initiative to persuade the US and Australia to rejoin Kyoto.
The initiative brings together leaders from politics, business, science and civil society from around the world to create an International Task Force on Climate Change. The taskforce will be co-chaired by UK Labour MP Stephen Byers and US Republican Senator Olympia Snowe.
Upon the launch, the think-tanks announced that “The geographic representation of the taskforce reflects the need for full engagement and support from major European and developing countries and the desire to bring the two countries that have rejected the Kyoto Protocol, the US and Australia, back into the multilateral process”.
The taskforce is set to publish a set of proposals in early 2005.
The Institute for Public Policy Research (UK), the Center for American Progress (US) and the Australia Institute yesterday launched an initiative to persuade the US and Australia to rejoin Kyoto.
The initiative brings together leaders from politics, business, science and civil society from around the world to create an International Task Force on Climate Change. The taskforce will be co-chaired by UK Labour MP Stephen Byers and US Republican Senator Olympia Snowe.
Upon the launch, the think-tanks announced that “The geographic representation of the taskforce reflects the need for full engagement and support from major European and developing countries and the desire to bring the two countries that have rejected the Kyoto Protocol, the US and Australia, back into the multilateral process”.
The taskforce is set to publish a set of proposals in early 2005.
Aus government's head still in the sand on climate change
STUDYING the planet's climate record over thousands of years is no easy task. A more bite- size challenge is a review of the way the Coalition has blown hot and cold on the issue of climate-change policy - and such an analysis is timely as the Government readies its 'climate change forward strategy' for release in the next few weeks.
Choosing to call it a 'forward' strategy seems at first glance a strange decision - after all, what other kind of strategy is there? But in fact it is entirely appropriate, since this is a Government that has stepped forward and back on greenhouse issues so often that its approach is more analogous to a dance-steps card than a coherent approach to policy. "
STUDYING the planet's climate record over thousands of years is no easy task. A more bite- size challenge is a review of the way the Coalition has blown hot and cold on the issue of climate-change policy - and such an analysis is timely as the Government readies its 'climate change forward strategy' for release in the next few weeks.
Choosing to call it a 'forward' strategy seems at first glance a strange decision - after all, what other kind of strategy is there? But in fact it is entirely appropriate, since this is a Government that has stepped forward and back on greenhouse issues so often that its approach is more analogous to a dance-steps card than a coherent approach to policy. "
Silicon company applies for carbon charge exemption
The proposed development of a lignite-fired power plant in the south is the basis of a silicon company's case to the Government for an exemption from carbon charges.
A spokesman for ministerial group of climate change convener Pete Hodgson said today Silicon Metal Industries, which has plans for a 45,000 tonnes-a-year silicon metal refinery in the South Island, was "essentially seeking an exemption on the carbon tax on the fuel for the power station" to run the proposed refinery.
"That's predominantly the relief they're looking for – an agreement to enable them to escape having to pay the carbon charge on the fuel for the power station," he said.
Silicon Metal Industries spoke out last week on its plans for a silicon refinery using gravel deposits from Pebbly Hills in Southland.
However, chairman Michael Hawarden said the project still had hurdles to clear, including the securing of a stable power supply – possibly by way of a lignite-fired generator – and a negotiated greenhouse agreement (NGA) with the Government.
The proposed development of a lignite-fired power plant in the south is the basis of a silicon company's case to the Government for an exemption from carbon charges.
A spokesman for ministerial group of climate change convener Pete Hodgson said today Silicon Metal Industries, which has plans for a 45,000 tonnes-a-year silicon metal refinery in the South Island, was "essentially seeking an exemption on the carbon tax on the fuel for the power station" to run the proposed refinery.
"That's predominantly the relief they're looking for – an agreement to enable them to escape having to pay the carbon charge on the fuel for the power station," he said.
Silicon Metal Industries spoke out last week on its plans for a silicon refinery using gravel deposits from Pebbly Hills in Southland.
However, chairman Michael Hawarden said the project still had hurdles to clear, including the securing of a stable power supply – possibly by way of a lignite-fired generator – and a negotiated greenhouse agreement (NGA) with the Government.
Workshop on CDM and the Kyoto Protocol - Business opportunities for New Zealand in Asia and the Pacific
The Energy Federation of New Zealand invites you to this workshop:
Venue: InterContinental Wellington (Cnr. Grey & Featherston Streets, Wellington, NZ)
Date: Friday, 16 April 2004
Time: 9:00-17:00
Attendance is FREE (Maximum of 110 Attendees)
Lunch, plus Morning & Afternoon Teas will be provided
This workshop will examine possible business opportunities for New Zealand companies using the Clean Development Mechanism (CDM).
Its objectives are:
To inform and raise awareness amongst companies about CDM
To discuss the structure and market of the CDM
To discuss the business opportunities existing within the Asia and Pacific regions for CDM projects
To provide a list of institutions that provide funding for CDM projects
To provide a forum to allow different groups and companies to put forward their views on what businesses need to engage in CDM projects
To make suggestions and recommendations for developing CDM Projects from a New Zealand perspective
Speakers from New Zealand, Australia and Japan (TBC)
Sessions on the technical, legal and policy issues surrounding the CDM, viewpoint of New Zealand Companies involved in CDM, Local and overseas initiatives including CDM procurement opportunities, plus
Panel Discussion Session for companies to put view their suggestions on What New Zealand Companies need from the Government to engage in CDM Projects
Please direct enquiries to:
John Kessels or Cito Gazo
CRL Energy Ltd
PO Box 31-244, Lower Hutt
Phone: +644 5703712 Fax: +64 4 5703701
Email: J. Kessels@crl.co.nz
C.Gazo@crl.co.nz
BOOK NOW TO ENSURE A PLACE
The Energy Federation of New Zealand invites you to this workshop:
Venue: InterContinental Wellington (Cnr. Grey & Featherston Streets, Wellington, NZ)
Date: Friday, 16 April 2004
Time: 9:00-17:00
Attendance is FREE (Maximum of 110 Attendees)
Lunch, plus Morning & Afternoon Teas will be provided
This workshop will examine possible business opportunities for New Zealand companies using the Clean Development Mechanism (CDM).
Its objectives are:
To inform and raise awareness amongst companies about CDM
To discuss the structure and market of the CDM
To discuss the business opportunities existing within the Asia and Pacific regions for CDM projects
To provide a list of institutions that provide funding for CDM projects
To provide a forum to allow different groups and companies to put forward their views on what businesses need to engage in CDM projects
To make suggestions and recommendations for developing CDM Projects from a New Zealand perspective
Speakers from New Zealand, Australia and Japan (TBC)
Sessions on the technical, legal and policy issues surrounding the CDM, viewpoint of New Zealand Companies involved in CDM, Local and overseas initiatives including CDM procurement opportunities, plus
Panel Discussion Session for companies to put view their suggestions on What New Zealand Companies need from the Government to engage in CDM Projects
Please direct enquiries to:
John Kessels or Cito Gazo
CRL Energy Ltd
PO Box 31-244, Lower Hutt
Phone: +644 5703712 Fax: +64 4 5703701
Email: J. Kessels@crl.co.nz
C.Gazo@crl.co.nz
BOOK NOW TO ENSURE A PLACE
Kyoto policy sparks anger
Add this to the list of the Government's problems this year - the prospect that the smouldering resentment of Kyoto forest owners will turn into a forest fire of protest.
Kyoto forests are forests planted since 1990 on land not previously used for forestry.
More
Add this to the list of the Government's problems this year - the prospect that the smouldering resentment of Kyoto forest owners will turn into a forest fire of protest.
Kyoto forests are forests planted since 1990 on land not previously used for forestry.
More
Silicon Metal Industries, New Zealand Government AgreementThe New Zealand Government will enter negotiations for a Negotiated Greenhouse Agreement with Silicon Metal Industries (New Zealand) Limited.
Silicon Metal Industries (NZ) Ltd intends to convert gravel deposits in Southland into silicon metal, which is used in the manufacture of rubber tyres and high-technology products such as solar panels, silicon chips, liquid crystal displays, silicon plastics, light metal alloys and long-life silicon paints.
The company has an exploration permit and an access agreement for gravel deposits at Pebbly Hills, central Southland. Negotiated Greenhouse Agreements (NGAs) are a key element of New Zealand's climate change policy.
More
Silicon Metal Industries (NZ) Ltd intends to convert gravel deposits in Southland into silicon metal, which is used in the manufacture of rubber tyres and high-technology products such as solar panels, silicon chips, liquid crystal displays, silicon plastics, light metal alloys and long-life silicon paints.
The company has an exploration permit and an access agreement for gravel deposits at Pebbly Hills, central Southland. Negotiated Greenhouse Agreements (NGAs) are a key element of New Zealand's climate change policy.
More
Making Progress on Bioenergy
Bioenergy Association
and Massey University, Centre for Energy Research
INVITE YOU TO A SEMINAR
Two speakers for the price of one
We are fortunate to have two international experts in Wellington who have
agreed to speak on their experiences in getting value out of bioenergy.
³Converting bioenergy information to knowledge²
Neill Allan
"How Europe is extracting wealth from bioenergy?"
Andre Faaij, Utrecht University
Venue:
Urban Health Theatrette (Previously BP Theatrette)
BP House, cnr customhouse Quay & Johnston St
Wellington
Date: 19 March 2004
Time: Buffet Lunch 12.00pm
Speakers 12.30pm
Close 2.00pm
Cost:
Bioenergy Association Members $30
Massey University Staff and Students $30
Non members $45
RSVP: By 17 March 2004
To: Jeanette Turkington 04 385 3389
jeanette.turkington@bioenergy.org.nz
Bioenergy Association
and Massey University, Centre for Energy Research
INVITE YOU TO A SEMINAR
Two speakers for the price of one
We are fortunate to have two international experts in Wellington who have
agreed to speak on their experiences in getting value out of bioenergy.
³Converting bioenergy information to knowledge²
Neill Allan
"How Europe is extracting wealth from bioenergy?"
Andre Faaij, Utrecht University
Venue:
Urban Health Theatrette (Previously BP Theatrette)
BP House, cnr customhouse Quay & Johnston St
Wellington
Date: 19 March 2004
Time: Buffet Lunch 12.00pm
Speakers 12.30pm
Close 2.00pm
Cost:
Bioenergy Association Members $30
Massey University Staff and Students $30
Non members $45
RSVP: By 17 March 2004
To: Jeanette Turkington 04 385 3389
jeanette.turkington@bioenergy.org.nz
Greenhouse gas deal considered by states
Victoria and NSW are considering a Kyoto-style trading scheme for greenhouse gas emissions.
Officials from the states met a month ago to discuss a deal as a way to reduce carbon dioxide emissions, after an approach by NSW Premier Bob Carr.
Mr Carr wants to set up a national greenhouse emissions trading scheme as an alternative to the one set out in the Kyoto Protocol on climate change, which the Federal Government has refused to ratify.
'We need some form of scheme to drive emissions abatement,' James Golden, a policy analyst with the Victorian Department of Sustainability and Environment, said.
'We have commenced discussions with NSW on the potential for a bilateral emissions abatement scheme and at this stage everything is on the table.'"
Victoria and NSW are considering a Kyoto-style trading scheme for greenhouse gas emissions.
Officials from the states met a month ago to discuss a deal as a way to reduce carbon dioxide emissions, after an approach by NSW Premier Bob Carr.
Mr Carr wants to set up a national greenhouse emissions trading scheme as an alternative to the one set out in the Kyoto Protocol on climate change, which the Federal Government has refused to ratify.
'We need some form of scheme to drive emissions abatement,' James Golden, a policy analyst with the Victorian Department of Sustainability and Environment, said.
'We have commenced discussions with NSW on the potential for a bilateral emissions abatement scheme and at this stage everything is on the table.'"
Powerful exporter at the crossroads
The problem is that they will occur against a background of significant uncertainty about how much, and how quickly, wholesale electricity prices are set to rise.
Central to that uncertainty is the Government's climate change policy.
The Government plans to introduce a tax on the carbon content of fossil fuels in 2007 as part of a suite of measures to meet obligations under the Kyoto Protocol.
But it is an open question whether Kyoto will come into force; it will do so only if Russia ratifies it.
If it does not, will the carbon tax come in anyway? A case for a fiscally neutral carbon tax could be made on tax policy grounds alone.
Even if Kyoto gets up, its first commitment period, 2008 to 2012, will expire about the time the smelter's existing power contract does. There is even more uncertainty about whether there will be a second commitment period, or a third.
If a carbon tax is imposed, how heavy will it be? It will depend on the value of carbon credits on the international market, but the Government has initially put a cap of $25 a tonne on the tax.
: "Powerful exporter at the crossroads "
The problem is that they will occur against a background of significant uncertainty about how much, and how quickly, wholesale electricity prices are set to rise.
Central to that uncertainty is the Government's climate change policy.
The Government plans to introduce a tax on the carbon content of fossil fuels in 2007 as part of a suite of measures to meet obligations under the Kyoto Protocol.
But it is an open question whether Kyoto will come into force; it will do so only if Russia ratifies it.
If it does not, will the carbon tax come in anyway? A case for a fiscally neutral carbon tax could be made on tax policy grounds alone.
Even if Kyoto gets up, its first commitment period, 2008 to 2012, will expire about the time the smelter's existing power contract does. There is even more uncertainty about whether there will be a second commitment period, or a third.
If a carbon tax is imposed, how heavy will it be? It will depend on the value of carbon credits on the international market, but the Government has initially put a cap of $25 a tonne on the tax.
: "Powerful exporter at the crossroads "
National rethinking its tax policy
Aside from tax, National is reported by some sources to be taking a less aggressive position on selling state assets than some of Brash's early statements implied and reconsidering its opposition to the Kyoto Protocol. "
Aside from tax, National is reported by some sources to be taking a less aggressive position on selling state assets than some of Brash's early statements implied and reconsidering its opposition to the Kyoto Protocol. "
