Solid Energy, NZ’s state-owned coal mining company, is promoting an alternative to an economy wide emissions trading scheme. According to Carbon News, the approach is being “heavily peddled to policy makers and others in Wellington”, and it is seen to have “great simplistic appeal”. Carbon News has made the document, A Durable Climate Change Strategy for New Zealand, available here.
The essence of the scheme, once you plough through Solid Energy’s reasons for disliking the ETS as currently proposed, is that the government should plant lots of trees, funded by a $1/tonne carbon levy applied across the economy. Lots and lots of trees — a million hectares of new exotic and native forest planted over the next 20-30 years. Solid Energy claims that “Kiwiforest” would provide enough cheap carbon sequestration to allow the economy to grow without the need to impose steep carbon prices. An ETS would only be introduced when there was a truly global interlinked network of carbon markets.
Sounds attractive, on the face of it. Who could object to planting lots of trees? Certainly not me. Unfortunately, as a national emissions strategy it looks too simplistic to be realistic, and on Solid Energy’s numbers delivers emissions reductions that aren’t credible.
