Vector Welcomes Release of Productivity Commission Report
Vector Welcomes Release of Productivity Commission Report into Transitioning to a Low Emissions Economy
Vector welcomes the release of the Productivity Commission’s report on transitioning to a low emissions economy.
Vector Chief Executive Simon Mackenzie said it was positive to see the risks from climate change being explored in an economic context, as well as more broadly, and that the release would lay the foundation for further debate on how to ensure a just transition to a low carbon future.
“The physical, social, environmental and economic impacts of climate change present risks for business. Progressive companies, like Vector, are already exploring how we can create economic and social value in a carbon constrained world”, Mr Mackenzie said.
“We’re pleased to see the report has picked up on points from Vector’s submission, especially recommending an ‘all-sectors’ approach to carbon reduction, and the importance of creating a stable policy environment for climate action.”
The report also highlighted the importance of electricity distribution businesses in helping the sector reduce carbon emissions.
“New technologies like intelligent demand response and distributed energy resources like residential solar and batteries or microgrids will help bring down emissions, improve resilience, and reinforce security of supply”, Mr Mackenzie said.
“These new technologies may be especially beneficial to rural or remote customers, where the cost of traditional network reinforcement may be higher”.
The report also outlines the need to ensure the costs of transitioning do not fall disproportionately to those least able to absorb them.
“Vector is majority community-owned through Entrust, and so our primary concern is the need to ensure the costs and benefits of the transition are shared fairly, especially with respect to lower income households and individuals.”
Vector has already signalled its intention to achieving Net Zero carbon emissions by 2030.