O'Connor GregClimate ChangeCHAIRPERSON (Greg O'Connor): Members the committees is now resumed. The Minister of Climate Change is now available for 30 minutes to respond to members questions.David MacLeod (Chairperson of the Environment Committee): Mr Chair thank you thank you. Hey I'm pleased to provide this opening address on climate change during the committee stage of the appropriations bill. The Environment Committee in its short time together this electoral term has performed several reviews of agencies and I'd like to talk to a few of those in particular that relate to climate change.Firstly the Climate Change Commission. We all would have a good general understanding of the emissions trading scheme (ETS) and its intent to send price signals that are intended to cause individuals and businesses to change their practices and explore using low-emissions technology. The commission's review included feedback on the four 2023 ETS auctions which failed to sell any New Zealand units. Although the commission is not responsible for setting the price of New Zealand units they convey that there appears to be a significant overhang of previously issued emissions rights in the carbon market. The commission went on to say that evidently emitters were able to satisfy the obligations by surrendering units without going to auction in 2023.In the Environment Committee's review of the Energy Efficiency and Conservation Authority (EECA) we heard how they support people and organisations to switch to low-emissions transport technology and fuel. In 2022-23 ECA supported 45 low-emissions transport projects and helped fund the installation of 60 public electric vehicle (EV) charging stations. It's fair to say that the Government's commitment to have a nationwide network of 10000 public EV chargers by the year 2030 will go a long way to accelerate the adoption of electric vehicles and give more New Zealanders the confidence to make the switch to electric.The Ministry for the Environment spoke during their review of the work they're doing to transition to a climate resilient low-emissions circular economy. They conveyed how they were working with the Ministry for Primary Industries to develop a standardised emissions calculator for the agricultural industry. The Ministry for the Environment believes that both individuals and organisations will act voluntarily to reduce their emissions if their choices are supported by good data. The work being conducted by these two organisations will go some way towards setting up a pathway to price agricultural emissions by 2030 as agreed by this Government. Also it is essential to reforming the biotech industry so its potential can be unleashed and assist in harnessing emissions-reduction technology.One area I'd like to talk to that's significant in the emissions reduction debate is all the extra electricity the country needs and we will need. It is estimated New Zealand will require approximately double the amount of electricity we currently generate to satisfy the demands by the year 2050. It could be more. Just think about that. All of the current hydro dams geothermal plants wind farms solar arrays gas generators and occasionally the coal generation at Huntly would need to double by 2050. Clearly we want any new generation to be green but if we think we can achieve building these very important infrastructural projects with our current consenting and permitting regimes we're dreaming. We are already at risk of having the lights go out every winter. And yet every year the consumption of electricity goes up without arguably the commensurate required increase in generation capacity.We are also very exposed by not having enough peaker plants. These are the electricity generation plants that can turn on rapidly when peak generation demand requires it. Peak electricity is currently provided by hydro and gas generation so if we're in a low hydrological year and we don't have enough water in the lakes to turn on hydro we're left with gas peaker plants to fill the gap—hence this Government's propensity to encourage gas exploration in New Zealand. Gas is nowhere near as bad as coal emissions-wise and we should understand that clearly.CHAIRPERSON (Greg O'Connor): Mr MacLeod by convention this is usually a non-political speech by the chair of the committee but I'll leave you to finish.DAVID MacLEOD: I think it's very important for the climate change though to understand our challenges as a country. It's not perfect in a green sense to your point but it is a necessity while transitioning our country to our green electricity goals that we have. You can perhaps tell that I'm from Taranaki but I don't say this out—CHAIRPERSON (Greg O'Connor): The member's time has expired.