Parker David: Climate Change Response Amendment Bill — Third Reading 
Parker David: Climate Change Response Amendment Bill — Third Reading 
[Volume:635;Page:6394] 
Hon DAVID PARKER (Minister responsible for Climate Change Issues) 
: 
 I move  
That the Climate Change Response Amendment Bill be now read a third time 
. Climate change presents very serious global risks and demands an urgent global response. The recent Stern review concluded that the scientific evidence is overwhelming. Taking action now must be viewed as investment in the future. The less we do now the greater the difficulty and the costs of adapting to climate change in the future. We must do what we can to reduce our emissions to protect our clean green image and to make our contribution to the global effort. 
The great outdoors is central to Kiwis’ lives. We need to protect it so that we can maintain our distinct New Zealand way of life. We need to take action balanced with the need for productivity gains and growth. This bill is about providing opportunities. The bill allows individuals the opportunity to hold accounts in New Zealand’s Emissions Unit Registry and to trade in emission units. It also provides a mechanism for landowners to establish forest sinks and earn Kyoto Protocol units. With these opportunities come risks. As with all investments individuals will need to make their own assessment of the risks and returns of entering the emerging carbon market. 
In regard to the Emissions Unit Registry the bill amends the principal Act to allow for individuals not only the Crown to hold accounts in the registry and therefore to hold emission units. The amendments made by the Commerce Committee were to clauses 5 13 and 23 in order to better protect the property rights and interests of unit and account holders. The Commerce Committee amended clauses 5 and 13 which relate to the powers of the Minister of Finance and the registrar to deal with units open accounts etc. by providing more specific criteria in circumstances in which the Ministers responsible for the registry may provide a direction to the registrar to close a holding account. The select committee also amended clause 23 which limits the bar to bringing an action against the Crown. This narrows the exclusion of Crown liability. 
In regard to the Permanent Forest Sink Initiative the bill amends the principal Act by inserting a new Part 3B into the Forests Act 1949. This will provide an opportunity for landowners to establish forest sinks and earn carbon credits. The mechanisms in this bill will enable landowners to make better productive use of their land particularly isolated and erosion-prone land that is currently marginal for uses such as agriculture or conventional forestry production. Landowners may wish to establish a forest to control soil erosion improve water quality and better manage flood peaks. This may in turn assist with maintaining land production averting damage to farm improvements and reducing downstream damage from siltation and pollution. Forestry of course can also diversify rural incomes thus reducing the impact of adverse events that may become more frequent with climate change. 
The Permanent Forest Sink Initiative provides an opportunity for landowners to assist in both mitigating and adapting to climate change. The aim of adapting to climate change is to minimise the risks and maximise the opportunities that will arise from the projected changes in our climate over the coming decades and century. Adaptation complements mitigation and mitigation is about reduction of emissions. Both are necessary responses to deal with the challenges that climate change poses to our economy environment and society. 
The Government moved amendments to the bill through a Supplementary Order Paper during the Committee of the whole House. Since the second reading in relation to the registry amendments have been made to clause 7(2)(a) clause 9 and clause 15(1). The amendments to clauses 7(2)(a) and 15(1) were made in order to ensure more efficient operation of the registry. The amendment to clause 9 was to provide better transparency and specificity in order to better protect the rights of unit and account holders. With regard to the Permanent Forest Sink Initiative amendments were made to clause 30. The amendments substitute new definitions of landholding carbon sequestration forest sink forest sink covenant and landowner. These are technical amendments and will assist the working of the legislation. The more substantive change to clause 30 concerns the regulation-making powers. It enables regulations to be promulgated by the Governor-General in Council concerning carbon sequestration calculation methodology the transfer of units the definition of a forest sink dispute resolution requirements for reporting and verification and harvest restrictions. 
Finally I thank all of those involved in developing the bill the Commerce Committee for its consideration of the bill and my parliamentary colleagues from both sides of the House who have supported the bill.