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New NZIER report on Kyoto Protocol: Hodgson’s view

Sunday, 24 February 2002 Media Statement

New NZIER report on Kyoto Protocol: Hodgson’s view

The latest NZIER report on the Kyoto Protocol fails to improve the Institute’s poor standard of research and commentary on the issue, says the Convenor of the Ministerial Group on Climate Change, Pete Hodgson.

“The Kyoto Protocol: issues for New Zealand’s participation” [Eds: released Friday with embargo to 1am Monday 25 February 2002] was prepared by the New Zealand Institute of Economic Research (NZIER) for the Climate Change Pan Industry Group.

“The report repeats the mistaken claim that New Zealand will be an early ratifying nation,” Mr Hodgson said. “By our intended ratification date in August, more than half of all nations with emissions targets under the Protocol will have ratified.

“The report repeats the mistaken claim that adjustment costs will fall disproportionately on New Zealand. This country will be a net seller – not a net buyer – of emission units on the global carbon market, which is just one reason why ratification is New Zealand’s economic interests.

“The report repeats the mistaken claim that New Zealand’s ratification of the Protocol would be irreversible – it wouldn’t be – and that New Zealand is unable to manage uncertainty about when other nations will join. The uncertainty is manageable, as our preferred policy outline to be released in April will show.

“The report argues that the cost of reducing the rate of climate change must not exceed the cost of mitigation, but does so without attempting to quantify the cost of doing nothing. There is good reason to expect it would be huge.

“The big industry groups that have funded this report have not received good value for their money. There are no facts in the report that are not already on the public record and the accompanying commentary is closer to polemic than analysis.”


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