He has also signaled that the government's ratification of the Kyoto Protocol is likely before the end of the year.
Yesterday the minister said this country's future energy prospects and climate change objectives would be significantly enhanced if the government achieved its renewable energy target, which was an extra 30 PJ of renewable energy, or about 8,300 GWh, a year by 2012. New Zealand currently generated 133 PJ a year from renewable sources, which would increase to 163 PJ a year by 2012 if the target was achieved. The increase would be equivalent to the energy produced by an additional 60 Tararua wind farms.
Hodgson said the renewable energy target demonstrated the government's commitment to a broad-based action plan to achieve a sustainable energy future.
Hodgson, who is also convenor of the ministerial group on climate change, said the government had confirmed a policy package on climate change that put New Zealand in the best possible position to meet its international obligations under the Kyoto Protocol.
The only remaining matter to be concluded before ratification was the passage of the Climate Change Response Bill, dealing with the gathering of necessary information on greenhouse gas emissions and forest "sinks", and that was expected before Christmas.
Under the proposed climate change policy package, New Zealand will have a carbon tax, but not before April 2007, which will be capped at $NZ25 a tonne of carbon dioxide equivalent.
This will add about 6c a litre to the cost of petrol, 7c a litre to diesel and about 9 per cent to an average residential electricity bill. Agriculture, the source of more than half of New Zealand's emissions, will be exempt.
Energy industries whose international competitiveness would otherwise be at risk - such as the Methanex Taranaki methanol plants and the Marsden Point oil refinery - will be able to negotiate the terms of a partial or total exemption from the tax, provided they showing they are moving to the world's best practice in minimising emissions.
The government is also retaining the option of "emissions trading" as an alternative to an emissions charge if the international carbon market is functional and the price is reliably below the $NZ25 per tonne cap.
Hodgson said some firms that entered into negotiated greenhouse agreements, the binding commitments to manage greenhouse gas emissions, might source renewable energy as a way to meet their commitments. The eventual introduction of an emissions charge on fossil fuels would also provide an incentive for greater use of renewable energy.
However, commentators say they are unsure what effect the planned amendment of the Resource Management Act will have on the oil and gas sector and such organisations as the Taranaki Regional Council. The government plans to remove regional councils' ability to directly control greenhouse gas emissions through resource consents and regional plans. This is because emissions are to be dealt with through national policies.
Further amendments are being considered relating to prioritising renewable energy and adaptation to the effects of climate change.
Hodgson said the drive for new renewable energy would produce valuable new business opportunities, given that New Zealand was already renowned for technical expertise in geothermal and hydro energy. This could be extended to biomass, wind and other technologies as they were developed and installed.
There would also be the provision of incentives to accelerate the uptake of emission reduction initiatives, including new technologies and practices, that would otherwise be uneconomic.
"With the confirmation of this policy package New Zealand is now very well positioned for the entry into force of the Kyoto Protocol, which is likely to occur next year following ratification by Russia," he concluded.
