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Where's the business case for Kyoto?

Media release 3 December 2001

Where's the business case for Kyoto?

The Kyoto Protocol is fundamentally an economic agreement in terms of what it sets out to do - but the business case for it has not been made, says Business New Zealand.

Chief Executive Simon Carlaw says it's up to the Government to produce an economic cost-benefit analysis to make the case for Kyoto, but so far this has not happened.

"Where's the business case for Kyoto?

"The only economic analysis so far done has been by industries that stand to lose out from the Protocol - in other words, analysis for the case against Kyoto.

"Those in favour of ratification haven't yet made their business case.

"As a result, we have a situation where the Government can discount the "analytical limitations" of analysis like that of the NZ Institute for Economic Research - but does not come up with analysis of its own.

"It is the Government's economic analysis of the case for Kyoto that should be focused on - but there is none to date.

"It is not enough for Government to merely say that the environmental case is compelling. The Government also has to demonstrate that the limited application of this agreement - NZ would be the only Southern Hemisphere country impacted - will come at a cost that New Zealanders are able to pay," Mr Carlaw said.

ENDS



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