Crystal Clear on Climate Change

20 September 2007
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Crystal Clear on Climate Change

The Institution of Professional Engineers New Zealand (IPENZ) supports government’s moves towards a broad-based scheme as announced in its Climate Change Solutions.

“We support a broad-based scheme and also the inclusion of a timeline and targets, as this provides clarity and will assist business and investment”, says Director Engineering Charles Willmot.

Mr Willmot says the Institution is also pleased to see a range of policy options and a real commitment to investing in research and development. IPENZ also believes investment in operational research will be vital to implement the range of initiatives.

However, Mr Willmot says, to reduce emissions we need to reduce or remove demand for energy. Large users can respond to pricing mechanisms, but private users and SMEs do not have the ability to do so and so will require separate measures such as minimum standards.

“Large energy consumers such as businesses are also likely to have energy efficiency measures in place already as these consumers have access to technical capability to make informed decisions.

In our 2006 document Engineering a National Energy Strategy, we considered other measures including pricing policies, such as incentivising research or promoting public transport, where there is sufficient public good. Other suggested approaches include clarification of market rules, public education, compulsory information and setting minimum standards.

While price measures are likely to lead to some improvements, major reductions in greenhouse gas emissions will involve significant technological change, and most likely the adoption of transformational technologies. We note in this respect that Government has referred to the introduction of electric cars.

People’s behaviour and attitudes will be just as important if New Zealand is to achieve its climate change goals cost-effectively.

As a general principle, IPENZ considers that energy prices should reflect actual costs and include environmental externalities. On this basis, consumers will be moved to options with the lowest minimum lifecycle costs.”

ENDS

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