NZ’s emissions reductions go up in smoke as generators keep Huntly coal burning

Huntly thermal power station c/- Wikimedia Commons

The decision to keep the Huntly coal thermal power station open for another four years is not only contrary to all New Zealand’s commitments and climate targets, it also sends the Ministry for the Environment’s projections of stabilising energy emissions to 2020 up in a cloud of coal smoke.

We seem to have had an extra dose of announcements and activities about climate change in an action-packed month of April.

Climate change minister Paula Bennett signed the UN Paris Agreement. The Morgan Foundation’s “Climate Cheats” report made a big splash. That lead to Jack Tame’s grilling of Paula Bennett. And the Royal Society of New Zealand released two major reports on climate change; one on impacts and another on policy responses. The business-backed Pure Advantage group released a report about enhancing forestry sequestration.

So what did the New Zealand energy industry do to elbow it’s way into the climate change spotlight? How do you beat signing the Paris Agreement or compete with climate fraud?

You just say you are going to burn more coal!

On 28th April 2016, Genesis Energy and Meridian Energy announced they had reached an ‘arrangement’ that would keep the coal-burning Huntly thermal power station open for an extra four years. This deal postpones the expected shut down from the planned 2018 date to 2022.

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Did NZ Steel make windfall arbitrage profits from the ETS?

In the wake of the Morgan Foundations hard-hitting report “Climate Cheats”, Simon Johnson (aka Mr February) asks if New Zealand Steel received millions of emission units for free under the New Zealand Emissions Trading Scheme industrial allocation provisions and yet still bought millions of the dubious international Russian units (ERUs) to make windfall arbitrage profits.

The Morgan Foundation’s latest report “Climate Cheats” has been sizzling across the various media in the last week. The language of the report is refreshingly non-neutral and unashamedly emotive. It is in equal parts compelling and condemning.

Carbon credit scheme a farce, reported the Herald. Climate change cheating, said Radio New Zealand. Dodgy deals, climate swindle, climate fraudsters, junk carbon scam, said report author Geoff Simmons.

As a consequence, “Climate Cheats” is an easy and engaging read – no mean feat given the topic – that is also thoroughly well-researched. It really is a ‘high integrity’ credit to it’s authors (if you pardon the pun).

In this post I want to look specifically at one particular type of corporate conduct – arbitrage profiteering – covered in “Climate Cheats”.

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NZ uses dodgy Ukrainian carbon credits, minister in denial

Paula Bennett
Paula Bennett

In which Jack Tame conducts the toughest interview ever with a New Zealand Minister for Climate Change and Paula Bennett ends up denying that the Government cheated on its climate change commitments.

Minister for Climate Change Paula Bennett has just been in New York signing the UN Paris Agreement. While in New York, Bennett was interviewed by TV One USA correspondent and general nice guy Jack Tame for Television NZ’s Q + A news show. You can read a full transcript.

I wonder if Paula Bennett thought she would get a soft jokey interview with that nice young man Jack Tame. She certainly didn’t. Tame takes the interview 110% seriously. He does not smile. He delivers his questions and his interruptions through a taught stone-face. And his questions are good questions.

We perhaps need to remember about a year ago, Jack Tame stood in for Mike Hosking on ‘Mike’s Minute’ and gave us a month of refreshingly different short pieces to camera. In that month, Jack Tame talked about climate change. And he concluded with a minute titled climate tipping points. So Tame takes climate change and climate change policy seriously.

Tame gives Bennett a couple of minutes to gush enthusiastically about the signing of the Paris Agreement. Then he cuts straight to the Morgan Foundation’s Climate Cheats report which alleges that the New Zealand Government was complicit in allowing dubious international carbon credits (Russian and Ukrainian and emission reduction units or ‘ERUs’) into the New Zealand Emissions Trading Scheme.

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Fixing the NZ Emissions Trading Scheme is just flogging the dead horse

How fast shall we drive over the cliffSimon Johnson looks at ‘fix the ETS’ metaphors and argues that trying to incrementally ‘save’ or ‘fix’ the NZ Emissions Trading Scheme will ensure it remains ineffective in reducing domestic emissions for decades. Politically, its just flogging the dead horse. We don’t have time for a unending institutionalised cultural conflict over ‘fixing the NZETS’ like the one we have had for ‘fixing’ the Resource Management Act.

In my last post I used the metaphor or framing of ‘arguing over the gears while accelerating towards a cliff’ for the latest review of the New Zealand Emissions Trading Scheme.

Other commentators are using a very different framing for the review; that of ‘fixing the NZETS’. For me that raises some fundamental questions. What are the political advantages and disadvantages of the two framings? Where will each framing lead us? Which framing is more ‘science-informed’?

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How fast over the cliff? More tinkering with the train-wreck NZ Emissions Trading Scheme

How fast shall we drive over the cliffSimon Johnson aka Mr February looks at the Government’s latest token consultation about tinkering with the train-wreck New Zealand Emissions Trading Scheme. We are still driving fast towards a cliff but the argument has moved from which gear to air-con versus heater. The Government has kindly given us the opportunity to make a submission about how hot or cold we should be as we go over the emissions cliff.

Back in September 2012, when Tim Groser and the National Government were last watering down the New Zealand Emissions Trading Scheme (NZETS), I wrote a post that used an excellent metaphor for amending the NZETS, tinkering with the gears while driving a car fast towards a cliff.

All credit should go to former Greens co-leader Jeanette Fitzsimons who had absolutely nailed her answer to questions from TVNZ about the relevance of amendments to the NZETS.

“Look, its like we are in a very fast car, we are heading towards a cliff, which is getting really close, and we are arguing whether to change from fifth to fourth gear”.

Now we roll forward and there is another review of the woeful NZETS.

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