NZ Can Profit From Climate Change

NZ Can Profit From Climate Change - Business Council

New Zealand can profit hugely from the right response to climate change, the certainty of which has been further confirmed in the latest UN report on climate change science.

Climate change needs to be approached in a positive way, and as an exciting opportunity for New Zealand, the Chief Executive of the New Zealand Business Council for Sustainable Development, Peter Neilson, says.

New Zealand has an immense opportunity to benefit from the challenge of managing climate change, if

The country encourages rapid commercialisation of home-grown and world-leading technological innovations which cut greenhouse gases
Government agencies, representing a third of the economy, immediately "go green" when buying billions of dollars worth of goods and services
Businesses step up efforts to reduce emissions and achieve huge cost savings
Households engage in doing a host of things which cut emissions, save them money, and improve the environment.

"Many people and businesses feel totally disempowered by the climate change threat, turn off and disengage. That's totally unnecessary. The gloom and doom doesn't help. We need to focus on the opportunities it provides to actually improve our way of life and trading position in the world.

"Some innovative world leading ideas are already in hand, some businesses here are now adding millions to the bottom line by behaving sustainably, and there are scores of actions households would love to take which means this country gets on top of climate change issues and secures a better future," Mr Neilson says.

Moves could be made to ensure venture capital is available for the quick commercialisation of New Zealand ideas, like one which would turn gas emissions from some major industrial processes, into bio fuels, including for the airline industry.

The country had made a world-first break though in using sewage pond algae to produce bio fuel.

Research was underway to lower methane emissions from ruminant animals.
"Each of these has the potential to earn billions globally, and position New Zealand as a climate change management leader, and protect and improve our trade position," Mr Neilson says.

Crown Research Institutes should be given incentives to advance research which will lower greenhouse gas emissions.

Procurement of sustainable goods and services by the Government's 47 core agencies would immediately see $6 billion in spending weighted toward products which were cheapest to run or use over their whole life and better for the environment and people. Research released yesterday by the Business Council shows 70% of business people would support this.

It also shows 90% believe sustainable development, to manage climate change and protect the country's trading position, is the way to go.

Mr Neilson says Business Council research showed Kiwis were eager to help and the country now needed to launch some major initiatives to generate a mass response to do simple things like households switching to energy saving light bulbs, going light on the car accelerator, buying a more fuel efficient car and cutting down waste to landfill.

"We believe, if asked, Kiwis would plant a million trees in a million backyards in quick time."

Mr Neilson says many leading world corporates have already learned that the reality has moved from not being able to use the words business and environment together in one sentence, to one where it isn't profitable to do otherwise.

GE's 'eco-imagination' initiative, launched in 2005 and aimed at providing customers with new products and services delivering clean air and water, was now forecast to treble its environmental technologies revenue to US$20 billion a year in the next three years. The revenue comes from making wind turbines, solar panels, water desalination plants and energy efficient appliances.

Toyota was this year poised to become the world's largest vehicle manufacturer, helped in part by its launch into hybrid vehicles back in 1990.

Du Pont was forecast to grow revenues by US$6 billion by 2015 from its sustainable business goals programme.

In New Zealand, many companies were enjoying multi million dollar benefits from reducing energy consumption; requiring suppliers to provide more sustainable products, introducing online ordering, and recycling energy.

"Businesses which adopt sustainable practices, to make a profit while also achieving environmental and social goals, are securing a long-term advantage. Our research says tomorrow's customers will severely punish those who don't. If New Zealand doesn't see the opportunities inherent in climate change our trading partners will punish us too. In a world rapidly going green, the key message for New Zealanders is to get in behind and benefit from the changes."

New Business Council research on business decision makers' views on approaches to sustainable development and procurement has just been published at http://www.nzbcsd.org.nz/story.asp?id=731

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