Anderson’s message is that although the Paris Agreement was a diplomatic triumph, it relies on speculative utopian technological fixes (bio-energy carbon capture and storage) in the future in order to reconcile the now extremely limited carbon budgets consistent with the desired 2C (and 1.5C) temperature limits with business-as-usual economics and politics. In other words, the Paris Agreement locks out the 2C target.
Why do I mention that? Because I want to run a ‘Kevin Anderson’ ruler over the New Zealand Government’s recently announced ratification of the Paris Agreement. To conduct a bare assessment of New Zealand’s emissions taking account that it is the cumulative emissions that determine warming. I want to ask the question ‘does the New Zealand ratification also lock out any policies for emissions reductions consistent with a fair share of a 2 degrees Celsius carbon budget?’
Geoff Simmons of the Morgan Foundation tells a good story about dodgy uncle Trev, fake bank notes and real moro bars while he fact-checks Paula Bennett on the integrity of the surplus emission units. It’s a real triple-dip!
Simon Johnson looks at how New Zealand Aluminium Smelter Limited is behind the Meridian/Genesis deal keeping the Huntly Thermal Power Station burning coal as the threat of closing the Tiwai Point smelter is stalling the construction of consented renewable energy projects.
My post really just noted how backwards the decision was in terms of reducing emissions of greenhouse gases. And that the expected shut-down of Huntly represented the only predicted drop in energy emissions New Zealand had advised to the UNFCCC. And that reduction has just gone up in smoke.
However, New Zealand Aluminium Smelters Limited and the Tiwai Point smelter have a malignant background role in the Huntly deal.
Meridian Energy said the deal was necessary to provide security of energy supply if the hydro lakes are low. That is only the case if the next ‘cab off the rank’ of renewable energy capacity is not built to replace Huntly. The generators don’t want to build any new renewable capacity if the smelter closes and Meridian then releases cheaper Manapouri hydro electricity onto the grid.
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.
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”.