Wagner Nicky: Estimates Debate — In Committee 
Wagner Nicky: Estimates Debate — In Committee 
[Volume:656;Page:5578] 
NICKY WAGNER (National) 
: 
 The National Government has increased its funding for environmental priorities in Budget 2009. Funding for Vote Climate Change is over $502 million. The Government’s priorities in Vote Climate Change are firstly the redesign and implementation of the New Zealand emissions trading scheme and secondly to present our climate change case in international negotiations. 
Climate change is one of the most important issues of our time and one of the most complex and challenging. New Zealand has a unique position. We are a developed annex 1 country with a developing world emissions profile. Our two major industries agriculture and tourism rely on our management of our natural resources in a clean green sustainable way. As customers become more environmentally discerning we need to ensure that our agricultural processes can provide food that is considered safe and to honour our “100% Pure New Zealand” tourist brand we need to show that we understand sustainability and care for our environment. How successfully we deal with climate change will reflect on these important industries. 
The Emissions Trading Scheme Review Committee is finalising its work and will report back in a matter of weeks. After that decisions will be made about amending New Zealand’s emissions trading scheme. The Government intends that amendments will be broadly in line with our 2008 policy. We want to create a pragmatic durable scheme that will ultimately create more business certainty. The Government will take into account the impacts of the global recession when considering amendments. We are also working with Australia to ensure that New Zealand’s emissions trading scheme is harmonised as far as possible with Australia’s carbon reduction scheme. However the longer New Zealand delays implementing policies the more difficult it will be to meet the more stringent targets that are likely under future global agreements. Earlier action will allow a smoother transition and will better prepare the New Zealand economy to compete in a carbon-constrained world. 
The international negotiations under the United Nations Framework Convention on Climate Change are headed towards a crucial meeting in Copenhagen this December. It is hoped that the main points of the future treaty will be agreed there. The Government’s intention is to announce New Zealand’s 2020 target prior to the beginning of the next negotiating meeting in Bonn on 10 August. All other developed countries have announced their 2020 targets. Australia has announced targets equivalent to reducing its emissions to below 1990 levels by 4 percent unilaterally or by 14 or 24 percent depending on the strength of global agreement. The European Union has announced a unilateral target of 20 percent below 1990 levels and 30 percent in the context of an ambitious international agreement. The US administration’s target is to return to 1990 levels by 2020 but more ambitious targets are still under consideration by the United States Congress. 
In setting a target for New Zealand the Government is considering scientific economic foreign affairs environmental and other factors including the findings of the Intergovernmental Panel on Climate Change and recent statements by the G8 and the Major Economies Forum on Energy and Climate in support of limiting global warming to 2 degrees centigrade. We are also taking into account public input from a series of meetings attended by over 1600 people an online panel discussion a national hui meetings with business people and over 150 written submissions. Recurring themes from the public input include the need to focus on the environmental and economic consequences of action or inaction New Zealand’s clean green image and the effects on international competitiveness. As well as making a fair contribution to global emission reduction New Zealand is also actively involved in getting right the shape and form of a future climate change agreement. It is a difficult challenge but New Zealand is up for it.