Author: Mr February

New minister for Climate Change Paula Bennett confirms NZ uses ‘Hot Air’ creative accounting to meet emissions targets

New Minister for Climate Change, Paula Bennett New Zealand’s new Minister for Climate Change, Paula Bennett, has just confirmed New Zealand will be “carrying forward” 127 million “Hot Air” emissions units (or offsets) under Kyoto Protocol rules. These units mostly do not represent a tonne of carbon dioxide equivalent reduced somewhere else and yet the Government intends to use them to allow New Zealand’s greenhouse gas emissions to continue to increase.

On Thursday 17 December 2015, Ms Bennett released a statement stating that New Zealand had met its 2008 to 2012 Kyoto Protocol emissions reduction target and was well on the way to meeting the 2013 to 2020 target.

The Minister’s statement linked to four reports on the Ministry for the Environment’s website;

In two scathing posts last week, blogger No Right Turn assessed the dubious use of the Ukrainian and Russian units derived from — of all things — coal stockpile projects; Climate change: A policy based on fraud and Climate change: How bad is NZ’s climate fraud?.

My previous estimate of the amount of surplus units likely to be used was 86 million units. The reports confirm the number to be 127 million units. I did a back-of-envelope calculation to relate the numbers of units cancelled (to match 2008-2012 emissions) and the numbers left over as ‘surplus’ which may be carried forward.

Surplus units
The Kyoto Protocol “true-up” of units and ‘carry-over’ of surplus units

The updated Latest update on New Zealand’s 2020 net position explicitly confirms that New Zealand is ‘re-using’ the surplus units in assessing compliance with the 2020 target of a 5% reduction in emissions from a 1990 gross emissions base. So we will ‘meet’ the 2020 target in spite of projected increases in both gross emissions and net emissions. Gross emissions in 2020 are estimated to be 83 million tonnes, or 24% higher than 1990’s 67 million. Net emissions in 2020 are estimated to be 59 million tonnes, or 24% higher than 1990’s 38 million tonnes.

Manipulating accounting rules like this — so that an adverse trend is systematically misrepresented is as its opposite, a positive trend — is the text-book definition of creative accounting. I agree with No Right Turn that this is another example of New Zealand’s completely unethical climate change policy.

NZ’s emissions target scam – Groser & Co’s creative accounting exposed

Simon Johnson (aka MrFebruary) looks at how climate change minister Tim Groser and the National-led government intend to use creative carbon accounting to ensure that New Zealand meets its 2020 climate change target (a five percent reduction) in spite of emissions of greenhouse gases (GHG) projected to increase to 2020 and beyond.

On 10 April 2015, when he was releasing the latest inventory of greenhouse gases, the Minister for Climate Change Issues Tim Groser made this very confident statement about the NZ 2020 climate change target; “We’re well on track to meet our 2020 target”

That target is to reduce greenhouse gas emissions to five per cent below 1990 levels by 2020.

When this was announced in 2013 the target was criticised as useless, pathetic and inadequate.

The five percent reduction stands in stark contrast to the Ministry for the Environments projections of increasing emissions out to 2020. The Ministry estimates that the increase in gross (total) emissions in 2020 will be 29% above the 1990 baseline (from 60 to 77 million tonnes) and the increase in net emissions (gross less any increase in the stock of carbon stored in forests) to 2020 will be 130% (from 33 to 75 million tonnes). So why is Tim Groser so confident that the target will be achieved?

Simon Terry of the Sustainability Council has commented on the ‘kicking the can down the road’ features of the Government’s climate change policies: the mismatch between the emissions target and the predicted emissions, the absence of a credible plan or carbon budget approach and the deferring of liabilities into the future.

Taking Simon Terry’s work as a starting point, I am going to look at how the Government intends to apply the accounting rules for carbon credits to achieve the 2020 target in spite of the likely predicted increase in gross and net greenhouse gas emissions.

So how is NZ going to reduce emissions by five percent by 2020?

Continue reading “NZ’s emissions target scam – Groser & Co’s creative accounting exposed”

Something old, something blue, something borrowed, not much new: Labour’s climate policy

Mr February (aka Simon Johnson) looks at the Labour Party’s climate change policy and concludes it’s not exactly innovative.

As I was saying in my previous post Labour do have a seven page climate change policy that is at first look pretty comprehensive.

Labour will

  • begin the transition to a low carbon clean energy economy
  • set ambitious greenhouse gas reduction targets and plans to achieve them
  • set up an independent climate change commission
  • will implement a comprehensive risk assessment framework in order to develop a comprehensive climate change response plan
  • establish a carbon budget process
  • achieve 90% renewable electricity generation target by 2025
  • reduce per capita domestic transport emissions 50% by 2040 from a base year of 2007
  • ensure that there is no retail carbon price gouging of consumers
  • manage the transition to ensure social justice particularly with respect to low income families
  • restore the carbon price to the NZETS (NZ Emissions Trading Scheme)
  • require emitters to cover at least half their emissions with NZ issued Units (not the cheap international ‘hot air’ units).
  • bring agriculture into the NZETS from 1 January 2016
  • give agriculture a free allocation of NZ units equal to 90% of 2007 production

Continue reading “Something old, something blue, something borrowed, not much new: Labour’s climate policy”

Memo to Labour: Calling fossil fuels “transition fuels” doesn’t make the carbon go away

The New Zealand Labour Party announced their climate change policy on 24 August; the Sunday before last Sunday.

At first glance, it sounds refreshingly like a policy that takes anthropogenic global warming seriously. From the announcement:

A Labour Government will put in place a comprehensive climate change strategy focusing on both mitigation and adaptation, establish an independent Climate Commission and implement carbon budgeting, says Labour Climate Change spokesperson Moana Mackey.

“This is about future-proofing our economy. Making the transition to a low-carbon clean technology economy is not a ‘nice to have’ as the current Government would have us believe. It is a transition we must make and the sooner we begin, the easier that transition will be.”

How did the media respond? Well they ignored it. I haven’t seen any reporting of Labour’s climate change policy in the Herald, or Stuff/Fairfax, or Radio NZ or TV1 or TV3. I only stumbled onto it via Scoop a week after the release.

Like the 2011 election, the issue of climate change has been notable for it’s absence (the snake swallowing the elephant in the room).

However, some climate change focused NGOs responded positively to Labour’s policy. Simon Terry at the Sustainability Council said a carbon budget was the single most important reform. Generation Zero and the Iwi Leaders Group and forest owners welcomed the policy. The mainstream media of course also ignored these NGO views.

However, before I get into the detail of Labour’s climate change policy (a topic for another post), it’s important to ask “are the dots connected with Labour’s energy policy?” Unfortunately, the dots are not connected and the energy policy is 180 degrees contrary to the concept of a carbon budget.

Continue reading “Memo to Labour: Calling fossil fuels “transition fuels” doesn’t make the carbon go away”

the kyoto – new zealand break-up – when unfaithful new zealand said ‘commitment’ he never meant it

In this post Simon Johnson argues the best analogy for New Zealand’s choice to opt out of a second commitment period (of reducing emissions) under the Kyoto Protocol – is: unfaithful men who won’t commit to their partners! New Zealand governments have behaved faithlessly towards Kyoto. The current National Government under Climate Minister Tim Groser won’t commit to Kyoto stage 2. And the 1990s National Government gave a commitment they had no intention of being faithful to. New Zealand politicians and diplomats intentionally negotiated Kyoto so that New Zealand’s Kyoto target would be met without reducing either gross or net emissions of greenhouse gases

I have argued before that New Zealand did not sign the Kyoto Protocol in good faith. As we seem unable to commit to Kyoto stage 2 in good faith, I have had another look at how faithful New Zealand’s position was at the beginnings of Kyoto and at ratification in 2002.

According to a UNFCCC account of the Kyoto negotiations ‘Tracing the Origins of the Kyoto Protocol: An Article-by-Article Textual History’ on page 48;

“New Zealand was the only Party which made an early, more comprehensive proposal on the treatment of sinks, suggesting that sequestration of greenhouse gases from certain listed categories should be added to a Party’s emission budget” (paragraph 226)

“New Zealand…faxed through a proposal for the treatment of sinks…sinks would not be included in a Party’s baseline, but removals would be credited to a Partys budget (the so-called ‘gross-net’ approach).” (para 227)

(NB ‘Sinks’ meaning forests or land-use or land-use-change that sequesters carbon dioxide from the atmosphere. So the New Zealand diplomats were ‘ahead of the curve’ in negotiating to get forest sinks recognised so they could offset other emissions.)

In October 1997,three weeks before the UNFCCC meeting in Kyoto, Simon Upton, the Minister for the Environment in Jim Bolger’s National Government said in a speech:

Continue reading “the kyoto – new zealand break-up – when unfaithful new zealand said ‘commitment’ he never meant it”