Business lobbyists need to produce quality research, and take lead on managing climate change
Business lobby groups need to produce well-researched studies on the impact of efforts to lower greenhouse gas emissions
here, and could look to British industry leaders for an example of how to lead on addressing climate change.
The most recent positions taken by the major Confederation of Business Industry (CBI) provide a stark contrast to the
latest effort of the Business Roundtable lobby group here.
Unfortunately, the value of economic modelling released today by the Business Roundtable and PEANZ "does not rise above
the quality of its heroic assumptions", the Chief Executive of the New Zealand Business Council for Sustainable
Development, Peter Neilson says.
These include ones of a 4.9% annual economic growth target, assuming complete carbon neutrality by 2050 and that no
other country takes steps to reduce emissions over the next 17 years. It also assumes no new emission-cutting technology
is introduced.
"None of those assumptions are well based. Unsurprisingly, the Roundtable leads itself to believe that there will be
'devastating' impacts on many industries, output will be cut 30 to 40% for sheep and dairy farming and that major
industrial firms could close. The Roundtable also says 'There are currently no low-cost ways for New Zealand to reduce
emissions significantly'.
"This of course would come as an absolute shock to the scientists at Lincoln University who, with the Ravensdown
fertiliser company, have developed a world-leading nitrogen inhibitor.. It not only promotes growth and boosts
production but cuts nitrous oxide emissions, which form a third of our agricultural emissions. New Zealand can cut
agriculture's emissions by 10% before 2012 by applying best practice technologies, including nitrogen inhibitors – and
make money while doing so. New Zealand companies are developing new world leading bio fuels from algae in sewage or
organisms fed on carbon monoxide emitted by steel mills. Overseas, Sargas in Norway believes it can remove 95% of CO2
from coal power stations for US$20 per tonne of CO2. None of this can be incorporated in the type of modelling
undertaken from the Roundtable and PEANZ.
"We need to move on from reports based on unrealistic assumptions and look at how our counterparts are leading in other
countries, while representing industry's concerns in a balanced way," Mr Neilson says.
The CBI said on January 24: "Businesses support the bold lead that the EU is taking on climate change. A robust cap for
emissions, while challenging, will help create the effective carbon market that firms need to plan and invest in new,
greener, technologies… Effort to cut emissions must be shared across the whole economy." The full statement is at http://www.morethanbusiness.com/Knowledge-Centre/Business-News/
2008-01-24/CBI-responds-to-new-EU-emissions-targets/350
The CBI recently commissioned McKinsey to advise it on emission abatement opportunities in the UK. That report shows it
is possible to cut emissions – grow an economy and profit.
Matthew Farrow, head of environment at the CBI, said on this report: "As the CBI's Climate Change Task Force made clear,
businesses, Government and individuals need to make climate change a shared national priority if we are to achieve the
urgent changes needed to avert the worst effects of climate change."
The CBI's statements and full climate change report are at http://www.cbi.org.uk/ndbs/press.nsf/0363c1f07c6ca12a8025671c00381cc7/
7b855aab02422f568025738b00446e19?OpenDocument
A recent UK Carbon Trust study also found that "for more than 90 per cent of manufacturing industry, carbon costs will
remain trivial compared to … other influences on international competitiveness."
Michael Grubb, chief economist at the Carbon Trust, said: "This analysis is a nail in the coffin for the myth that the
EU Emissions Trading System presents a threat to overall business competitiveness."
Mr Neilson says: "One wonders how they can envisage cutting emissions, when the Roundtable says that here we don't have
any options, only problems.
"New Zealanders want businesses to act to help manage climate change. A majority of business people also believe more
economic opportunities will be created rather than removed by addressing climate change."
Mr Neilson says the Business Council – whose 66 member companies' annual sales equate to 34% of the gross domestic
product – will make considered submissions on the Government emissions trading bill late this month.
"There are areas where the bill can be approved. But there is absolutely no doubt we need to put a price of carbon, cut
our emissions – protect our trade prospects and encourage all other major emitting countries to do the same."
ENDS