Author: Mr February

How fast shall we drive over the cliff? NZ’s ETS watered down (again)

How fast shall we drive over the cliffSimon Johnson looks at the Government’s amendments to the New Zealand Emissions Trading Scheme and concludes we are arguing about what gear to drive in as we speed towards the cliff. The Government has kindly given us the opportunity to make a submission about how fast fast we should go over the emissions cliff. Time to fasten your seatbelts.

Back in July, Tim Groser announced more watering-down of the New Zealand Emissions Trading Scheme (NZETS). About a week ago, on 23 August 2012, Groser introduced the amending legislation – the Climate Change Response (Emissions Trading and Other Matters) Amendment Bill. Consistent with previous emissions trading scheme legislation, the bill will be fully and rationally considered by Parliament’s Finance and Expenditure Select Committee in an insultingly short period of time – ten working days. The closing date for public submissions is Monday, 10 September 2012.

What does this ETS amending bill do?

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Moon-walking with due legal process to a very hot place – Neil Armstrong, coal mining & global warming

EarthApollo8.jpg

On the same day as the death of Neil Armstrong, the first astronaut to step onto the Moon, became public, the NZ High Court moonwalked its way to an off-the-world moment. It decided that greenhouse gas emissions and global warming are off-limits in the planning for an open cast coal mine. That’s as just as ‘out of this world’ as denying that the Moon landings ever happened, argues Simon Johnson.

On Saturday, two bits of news struck home to me very strongly. The first was the death of moon-landing astronaut Neil Armstrong. The second was the High Court decision that open-cast coal mines and global warming are legally and jurisdictionally unrelated in the Resource Management Act.

The moon landing in 1969 I remember very well. As a seven year old, I listened attentively to the ‘one small step’ broadcast. The whole class was silent under the spell of our teacher’s scratchy transistor radio. It’s one of my most strongly held memories of those days. I guess that reflects quite well on that class of seven year olds. They stopped playing bullrush, sniffing with colds, and fighting over lunches to listen attentively to the unfolding of one of humanity’s most historic moments.

While I was still fondly remembering the Moon landing, the next news item struck.

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NZ ETS, you are the weakest (international) link

Simon Johnson (Mr February) argues that the New Zealand Emissions Trading Scheme (NZETS) is “the weakest link” due to its high exposure to the international carbon market. The strong “international linkage” is the other side of the coin of the uncapped design of the NZETS. Both features reinforce just how ineffective the NZETS is in providing an incentive to reduce greenhouse gas emissions.

Who remembers the The Weakest Link? The quiz show with Anne Robinson the disciplinarian female host with the popular catchphrase “You are the weakest link. Goodbye!” Yes that’s today’s bonkers metaphor for another post on the NZETS. In addition to the observation that I would love to say “Goodbye!” to the ETS, there really is a relevant connection to the economics literature.

“Linking” of emissions trading schemes means that units from one ETS can be imported and surrendered by emitters regulated by a different ETS. There are papers and blog posts about international linkage. The key economic benefit claimed for linking two or more ETS, assuming that they are otherwise sensibly designed, is that the lowest-cost ways of reducing emissions within the linked schemes become available (via emissions trading) to the emitters of the linked schemes.

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Introducing the Kyoto Escalator: did anyone sign the protocol in good faith?

Simon Johnson introduces the Kyoto Escalator chart (inspired by the Skeptical Science Escalator chart) and argues that New Zealand was just as complicit as the major European countries in negotiating the Kyoto Protocol so that it could be complied with while gross and net emissions continued to increase.

New Zealand's Gross net and Kyoto greenhouse gas emissions 1990 to 2012
The Kyoto Escalator: New Zealand’s Gross greenhouse gas emissions (blue) increase by 19%; Net emissions (brown) increase by 23% and ‘Kyoto’ emissions (red) are less than average 1990 gross emissions.

Professor Dave Frame is the new director of the Climate Change Research Institute at Victoria University of Wellington. He is a University of Canterbury-trained scientist who has worked for some years in Britain. He has just joined the climate change fray with a very interesting opinion editorial “International focus needed over climate” in the Dominion Post. Welcome to climate change issues back in New Zealand, David.

Frame notes that New Zealand does not want to be thought of as the country that reneges on international treaties.

“Reputationally, accepting commitments and then failing to deliver on them is not a look New Zealand likes. “Doesn’t honour the treaties it’s signed” is not one of the few sentences we want people to remember about us.”

So, yes, I agree, New Zealand should honour the treaties it signs. I hate to nitpick, but isn’t New Zealand a country that is remembered for a treaty that we didn’t honour? Is our record on international climate change treaties any better?

Frame goes on to describe some of the different motivations underlying the negotiations that lead to the Kyoto Protocol.

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Business NZ: hands off our ETS handouts

Why is Business NZ putting its proverbial head above the parapet and expressing a view on the New Zealand Emissions Trading Scheme (the NZETS)? In this post, Simon Johnson argues that the ETS gives us the “Eyes Glaze Over” syndrome as it is a dead horse being flogged by the usual suspects. The NZETS is toothless by design. In both respects, Business NZ has got the Emissions Trading Scheme exactly how they want it.

Phil O’Reilly, the CEO of business lobby group Business NZ, has just written an opinion piece in the Herald on the New Zealand Emissions Trading Scheme (the NZETS).

I think I can guess what you are thinking.

“Oh no, an article about the NZETS…just the mention of it sucks the life out of me. I bet it has attracted a whole lot of crackpot denier comments. It’s so complex and full of jargon I don’t really know what to think about it. I find the whole subject just a turn-off. My Eyes are Glazing Over.

This is the entirely natural MEGO response, but you need to fight it! Most discussions of the NZETS descend into flogging the dead horse in order for the snake to swallow the elephant in the room sort of circularity.

We need to realise that this ETS inertia works to the advantage of the parties who gain from the current NZETS. That is of course, the big emitter business members of Business NZ. So, obtain a coffee or other stimulant and read on. I can help you through this. I have waded through Phil O’Reilly’s NZETS musings so you don’t have to.

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