Minister for Energy and Climate Change David Parker today released government papers on energy and energy efficiency, and a report looking at the government's direction on climate change policy.
He said the work on climate change policy was entwined with the work being done on the New Zealand Energy Strategy and the National Energy Efficiency and Conservation Strategy, drafts of which are expected later this year and in early 2007.
Parker did not release details of any measures that might adversely impact the oil and gas industries or the broader energy sector.
Last year the government scrapped its proposed carbon tax - of NZ$25 per tonne of emissions from next April - after a Ministry for the Environment report concluded the proposed charge would be unfair, inefficient and unlikely to substantially cut greenhouse gas emissions. That broad-based carbon tax had been expected to collect revenues of up to $NZ360 million annually.
Parker had then suggested a narrower tax aimed specifically at energy companies using fossil fuels and said energy companies would “factor-in” any carbon tax costs into future developments.
But today he spoke in only general terms, saying countries across the world were grappling with the challenges posed by dramatic energy price increases, constraints on traditional fuel supplies, and the impacts of climate change.
He said the New Zealand work program was focused on the long term.
"This does not mean that short term initiatives such as improving the efficiency of our vehicle fleet, enhancing building standards and encouraging forestry are not important, but they must be consistent with long term policy settings.”
Parker added there was little doubt that New Zealand's climate would be more unstable in the years ahead, bringing more drought to already drought-prone areas and more floods to those areas already vulnerable.
Government ministers and officials would be engaging extensively with affected groups over the coming months as the government progressed towards making final policy decisions.
