9 June 2015

Climate change response requires dialogue with business

New Zealand energy leaders want an agreed global framework for tackling climate change.

Their views and those of energy leaders world-wide are highlighted in a just released World Energy Council (WEC) report (1) that says uncertainty about how to respond to climate change is the main factor holding back investment in the energy sector.

The World Energy Council estimates up to $US53 trillion of investment is needed globally to achieve the low-carbon energy infrastructure required for cutting greenhouse gas emissions.

For New Zealand the critical issues are transport and agricultural emissions, while in other countries the investment is mostly needed for de-carbonising electricity systems – but all countries require large-scale investment in new technologies.

BusinessNZ Energy Council (BEC) Chair Dr Rob Whitney says the WECs report is timely, given the domestic process underway for setting a New Zealand emission reduction target.

He said research (2) undertaken last year by the BEC showed climate change uncertainty was the most critical issue reported by New Zealand energy executives.

“We need better dialogue between business and policy makers to achieve a sound framework for tackling climate change and begin to unlock the investment required.

“The report indicates that an ambitious response to climate change is impossible without a deeper, more informed conversation with business.

“Well-designed policies could support new business models, reduced market and regulatory barriers to new technologies and their diffusion, and faster uptake of financial innovations such as green bonds and risk sharing instruments and products.

“The New Zealand energy sector is committed to utilising cleaner technologies and improving energy efficiency and wants to work with policy makers to achieve a robust, durable framework for tackling climate change and unlocking the investment required.

“This could achieve more resilient infrastructure, greater energy security and more economic growth in the quest for carbon reduction and cement New Zealand’s leadership position in the top 10 of the 129 countries as ranked by the WEC across the three dimensions of energy security, energy equity and environmental sustainability.”

(1) World Energy Trilemma 2015: Priority actions on climate change

(2) 2015 World Energy Issues Monitor New Zealand Map

ends

© Scoop Media