10. Climate Change—Consultation Economic Opportunities and ImpactGARETH HUGHES (Green) to the Minister for Climate ChangeClimate Change—Consultation Economic Opportunities and Impact10. GARETH HUGHES (Green) to the Minister for Climate Change: Why has he announced that he will be consulting with New Zealanders on a Zero Carbon Act setting new targets and plans to reduce climate pollution?Hon JAMES SHAW (Minister for Climate Change): That is because we are embarking on what will be a significant and far-reaching piece of legislation to guide New Zealand's economic transformation over the next 30 years. We need to make sure that we bring all New Zealanders along with us especially people who work in industries and in communities that might change over the next few decades and also because we want to achieve as broad political support as possible. We want this to be a just and effective transition which is why we've agreed that it will be guided by principles like predictability for business ambition when it comes to setting goals being evidence led and creating enduring institutional arrangements.Gareth Hughes: Why is an independent climate commission important?Hon JAMES SHAW: It's because we are talking about a long-term economic—Hon Simon Bridges: Because James won't make the hard decisions.Hon JAMES SHAW: I'm sorry Simon?Hon Simon Bridges: I said because you won't make the hard decisions.Hon JAMES SHAW: It is because we are talking about a long-term economic transition—30 years—and we need to be able to maintain a level of consistency around policy and actions that will survive changes in Government and shifts in the economy that can't be predicted today. An independent climate commission helps to achieve that. The United Kingdom pioneered the independent commission model and it's now been implemented in about half a dozen other jurisdictions around the world.Gareth Hughes: What steps will he take to give local government Māori business farmers unions and other communities the opportunity to have input into the Government's climate change policies?Hon JAMES SHAW: I took the first step this morning meeting with business representatives from a number of sectors across the economy—Māori business interests and environmental campaigners—over coffee and Christmas mince pies to discuss yesterday's announcement and the Government's plans. The next step will be to gather some very robust economic research so we can make fully informed decisions. Then in May next year the Government intends to hold a very broad and inclusive public consultation around the country. We'll be engaging with specific sectors such as unions iwi and Māori businesses farmers local government and communities. Everyone needs to play their part and we are all in this together.Todd Muller: If the independent climate change commissioner recommends that agriculture is not to be brought into the emissions trading scheme (ETS) will the Minister accept that recommendation?Hon JAMES SHAW: We'll cross that bridge when we get to it.Todd Muller: How many countries include agriculture in their emissions trading scheme or equivalent?Hon JAMES SHAW: At the present there are none. There are a number of countries that are moving in that direction. So one of the things that I've observed at the Bonn climate conference is that the vast—Mr Speaker I'm just waiting to see if his colleagues would like him to hear the answer to the question.Mr SPEAKER: I shouldn't really give the member advice but he could be waiting a long time. So have a go anyway.Hon JAMES SHAW: Mr Muller one of the things that I noticed at the Bonn conference is that the vast majority of our trading partners in OECD countries are at present dealing with transport and energy emissions which in those countries form the bulk of their emissions profile but as they deal with them agriculture will become a much larger portion of their emissions and they are interested in dealing with those in time. So we are all moving in that direction and I can see that New Zealand has an incredible opportunity to play the lead role.Todd Muller: Is the Minister aware of any possible way to produce—through farming—dairy beef and lamb products without resulting in methane emissions either under current technologies or technologies in development?Hon JAMES SHAW: In gross terms no. By definition anything that has ruminant animals will have methane emissions associated with it. However as the member will probably well know in fact gross emissions from that sector are actually falling at the moment and as farmers become more productive—and New Zealand farmers are amongst the most productive in the world—emissions per unit can come down meaning that over time we can get to a situation where we do have a net zero emissions economy including agriculture in that. I think that that means that New Zealand has a tremendous leadership role to play for the rest of the world and that it represents the single greatest economic opportunity for us in at least a generation.Gareth Hughes: What advice has the Minister received about the impacts that climate change is already having on New Zealand?Hon JAMES SHAW: I've been advised that climate change is already affecting our coastal communities and our farmers Mr Muller and it is not too late to do anything about it. Mr SPEAKER: Mr Hughes.Hon JAMES SHAW: The climate change adaptation technical working group's updated assessment which I released last Friday along with the coastal hazards guidance for local government laid out what I see as grim reading and some big-picture challenges to address the risks and impacts of climate change. But forewarned is forearmed and these documents together with the information that we will gather from consultation over the zero carbon Act are important to meet those challenges around future infrastructure resilience local government planning decisions and also to help businesses communities and farmers to build resilience and to adapt.Gareth Hughes: What reports has the Minister seen about the economic opportunities to be gained from transitioning New Zealand to a low-carbon economy?Hon JAMES SHAW: I have seen recently that the Sustainable Business Council's members see climate change and the clean technologies and solutions required as a real opportunity for innovation and investment." I've seen reports that in countries like the United States jobs in the solar energy industry are growing 17 times faster than the entire rest of the economy. I've seen reports that the global clean energy investment this year will be almost US$300 billion which is up 40 percent on last year alone and I'd like to see a bit more of that in New Zealand. I'm looking forward to the Productivity Commission's report next year about the opportunities that a low-carbon economy will have for New Zealand. Our transition to a net zero economy by the year 2050 will be a great economic transformation that sets up New Zealanders and our communities to prosper for decades to come."