Advocacy Report Reader
Energy
Reforming the New Zealand Emissions Trading Scheme: Proposed Settings
Published: February 28, 2020
Submitting To: Ministry for the Environment (MfE)
Issue for Business: The key premise for our submission is that greater ambition, and therefore policy action, is not only increasingly accepted, but welcomed by many businesses (no more tangibly demonstrated than through leading businesses pledging to adopt science-based targets). However, the greater ambition needs to be balanced with the long-term durability of the framework and policy settings being put in place. To ensure this durability, a holistic approach must be taken to policy decisions, one that would recognise the inter-dependent nature of various Government work streams running in parallel. We are therefore concerned about what appears to be a fragmented and rushed policy push. The current array of consultations involve overlapping and sometimes contradicting proposals. In some cases, assumptions are based around unproven and/or yet to be implemented additional policy measures (e.g. EV incentives, Clean car standard and clean car discount programmes). In other cases, the impact assessment is incomplete. All this goes to undermine business confidence and the base on which investment decisions are made. We have previously commended MfE for having adopted a progressive approach to the development of an incredibly complex system by staging the consideration of the issues. It would be regretful to see this undone.
Energy
Accelerating Renewable Energy and Energy Efficiency
Published: February 28, 2020
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: With more than 40% of greenhouse gas emissions (GHG) coming from the energy sector, BEC welcomes the Government’s assessment of policy options that can help in accelerating the reduction of energy sector- related GHG emissions. BEC supports the acceleration of renewable energy (alongside other carbon reduction measures), particularly given the need to increase electricity capacity to support natural load growth and the decarbonisation of transport and heat.
Energy
Strategy Development Working Draft Emerging Themes
Published: February 24, 2020
Submitting To: Electricity Authority
Issue for Business: BEC notes with interest the release of the Authority’s strategy development working draft emerging themes discussion paper and is generally supportive of the general direction of this work. BEC expects that as the details emerge, additions or changes can be suggested and considered. The outcomes of the workings of each facet of the electricity market (e.g. wholesale and retail electricity, distribution and transmission, regulated and non-regulated) are of vital interest to all consumers, including individual consumers and businesses. In this brief response we highlight the approach we would like to see the Authority takes to changes in the market that will lead to different outcomes.
Energy
Review of the Crown Minerals Act 1991: Discussion Document
Published: January 27, 2020
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: Specifically, BEC wishes to comment on the role and purpose statement of the Crown Minerals Act 1991 (referred to as ‘the Crown Minerals Act’ or ‘the CMA’), as addressed in chapter 1 of the discussion document. We agree that a “clear, coherent, and fair regulatory regime” for the extraction of mineral resources is desirable. We note that the CMA is one of many legislative puzzle pieces that facilitates efficient, effective, and safe mineral extraction industries. We caution using the CMA as a vehicle for significant reform at a time where other parts of this legislative framework are also undergoing first-principles reform (for example the Resource Management Act 1991). While BEC is supportive of efforts to improve overall wellbeing, BEC suggests that explicit addition of specific wellbeing indicators and ‘capitals’ into the purpose statement is inappropriate with the potential of acting as a catalyst for unnecessary complexity.
Energy
Climate Change Response (Emissions Trading Reform) Amendment Bill
Published: January 17, 2020
Submitting To: Environment Select Committee
Issue for Business: An emissions trading scheme is a market-based policy instrument that provides a cost effective way to assist in controlling greenhouse gas emissions if designed properly. The nature and significance of the NZ ETS has evolved from a nested system under the Kyoto Protocol to a key policy instrument supporting the decarbonisation of the NZ economy at a low cost. Many of the current NZ ETS settings – reflecting legacy objectives or transitional measures – are incompatible, incomplete, or altogether lacking for the purpose of meeting emissions reduction budgets at a low cost. BusinessNZ accepts that the NZ ETS must be reformed. The nature of the changes proposed in the Amendment Bill – and which we address in this submission – is to enable the Minister to recommend regulations on various matters pertaining to the ETS (and specifically, if auctions are introduced). We therefore recognise that (except industrial allocation) the Amendment Bill addresses ETS design changes from a high-level perspective and expect that technical details on these changes will be consulted on separately in the context of amendments to ETS regulations (e.g. as per MfE’s most recent (2019) consultation document on auction price control levels and auction volumes).
Energy
A Vision for Green Hydrogen in New Zealand
Published: October 25, 2019
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: The BEC largely agrees with the identified challenges and opportunities. The paper recognises a bundle of complex issues that must be resolved in using hydrogen to support a successful transition to a low carbon economy. Looking ahead, the BEC supports the development of a hydrogen strategy but this needs to be a joined-up component of an overarching renewable energy strategy.
Resource
Responsibly Delivering Value: A Minerals and Petroleum Resource Strategy
Published: September 20, 2019
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: The purpose of a strategy is to help shape an eventual set of actions. Its purpose is to act as a touch-stone against which subsequent actions can be prioritised. It acts as a tool to guide the allocation of resources to highest value use. This then gives meaning to one of its other key roles – that is, to act as an accountability mechanism to ensure that the highest value outputs (as inferred by the strategy) are being delivered. As a broad, generally accepted characterisation of the purpose and role of a strategy, we are left somewhat confused by ‘Responsibly Delivering Value: A Minerals and Petroleum Resources Strategy for Aotearoa New Zealand: 2019 -2029’. We are quite simply unsure what to make of this ‘strategy’ – both in terms of how to understand its meaning and therefore impact, and what action to recommend to our members to take as a result of it
Energy
Market Study into the Retail Fuel Sector
Published: September 13, 2019
Submitting To: Commerce Commission
Issue for Business: In light of the passage of legislation giving the Commerce Commission new market inquiry powers, the Commerce Commission has commenced a fuel price inquiry. The purpose of the study is to consider and evaluate whether competition in the retail fuel market is promoting outcomes that benefit New Zealand consumers over the long term. (Tina Schirr [email protected])
Action: The BusinessNZ Energy Council submitted to the Commerce Commission on this issue. The submission has given us the opportunity to outline some initial thoughts and comments we would like the Commerce Commission to consider going forward.
Energy
Low Emission Vehicle Consultation Paper
Published: August 20, 2019
Submitting To: Ministry of Transport (MoT)
Issue for Business: This submission focuses on a systemic approach, but also comments on the two specific proposals – to introduce a ‘Clean Car Standard’ and/or a ‘Clean Car Discount’ as contained in the consultation document.
Economy
Climate Change Response (Zero Carbon) Amendment Bill
Published: July 12, 2019
Submitting To: Environment Select Committee
Issue for Business: This Bill is a defining Bill of our generation. If it achieves what it is set out to, it will reshape our economy and the way we live as a society. BusinessNZ supports this Bill.
Resource
Electricity Pricing Review
Published: March 22, 2019
Issue for Business: The BEC supports the Panel putting consumers at the heart of the electricity price review. The options paper outlines the importance for electricity prices to be fair and affordable for consumers, as well as efficient or competitive. We recognise that even with cost-reflective, efficient prices, outcomes can emerge that are undesirable for some consumer groups. However, a competitive electricity market is a desirable objective in itself, and a strategy of mostly using competitive tools to deliver on it an appropriate one. It is important to review the market multidimensionally including affordability as one of the dimensions. Understanding the conceptual gap between what the market can reasonably be expected to deliver, and the other outcomes the Panel wishes to achieve speaks to the identification of problems and the allocation of appropriate, matching solutions.
Energy
Process Heat in New Zealand: Opportunities and barriers to lowering emissions
Published: February 22, 2019
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: We largely agree with the identified barriers and other findings. We agree that it is important to better understand the barriers businesses face in lowering their emissions including those associated with process heat. Process heat has been identified as the second largest source of energy-related emissions, just behind transport. Better understanding barriers that prevent firms from investing in energy efficiency improvements or from switching to renewable alternatives is a good initial step. The paper recognises the bundle of complex issues which must be resolved to achieve a successful transition to a low carbon economy.