The scent around the Beehive is unmistakable. Is it the whiff of carbon dioxide, which continues to shatter records at measurement stations around the world? The answer is no – carbon dioxide is odorless. The unmistakable smell, however, seems to be that of decay in the government’s enthusiasm to limit climate change.
Ministers and politicians are quick to downplay the issue, often citing economic growth as the reason for not taking drastic measures to reduce emissions. They give the impression that it’s impossible to reduce emissions without sacrificing economic growth. But is this really the case? The Facts
- Carbon dioxide emissions have broken records, according to measurements at Baring Head off the Wainuiomata coast and in Hawai’i.
- New Zealand First’s Shane Jones wrote on Facebook in November that the planet is not boiling, and in March, he claimed to not be a climate denier.
- The Prime Minister repeatedly refused to confirm his commitment to meeting New Zealand’s emissions-reduction pledge under the Paris Agreement in Parliament last month.
Despite this, New Zealand has made significant progress in reducing energy use. According to Robert McLachlan, professor of applied mathematics at Massey University, energy use has dropped by nearly 10% since it peaked in 2017. Even more remarkably, energy use per person has steadily declined since 2001 and is now 28% lower. Yet our per-person real GDP grew by 38% in that time.
This trend is not unique to New Zealand. The OECD reports that more than 40 countries have lifted GDP while cutting emissions, and that well-designed climate policies can deliver stronger economic growth than business-as-usual pathways.
“If we invest in clean things, we can get better economic growth,” says Christina Hood, climate and energy expert at Compass Climate. “There’s also the flipside, which is that if we keep burning fossil fuels, it causes damage to the global economy and to New Zealand because we have more climate disasters to clean up.”
Other climate impacts like excess heat and crop damage affect productivity and inflation. So a good chunk of the growth we think we’re getting today through fossil fuels ends up being illusory,” Hood adds.
According to calculations from Rewiring Aotearoa, a climate and energy charity, electrifying household heating, hot water, cooking, and cars would save $95 billion worth of fuel by 2040. This would have huge, positive macroeconomic knock-ons for New Zealand’s balance of payments and productivity.
New Zealand has already made significant progress in reducing energy use, with renewables generating an increasing proportion of our energy. New projects that would more than treble current renewable generation are planned, according to the Electricity Authority’s “Investment Pipeline” website.
However, to press “go” on these projects, developers need to know demand will be there. Such demand comes from phasing out fossil fuels. But there’s that odour – predictions by the Ministry for Business, Innovation and Employment state that resuming offshore oil and gas exploration and mining would lead to a substantial increase in emissions, largely from prolonged gas usage in the electricity, commercial, and industrial sectors.
The Economic Benefits of Climate Action
- Global GDP grew by 22% from 2015-22, while emissions grew by only 7%.
- The OECD reports that more than 40 countries have lifted GDP while cutting emissions.
- Well-designed climate policies can deliver stronger economic growth than business-as-usual pathways.
Christina Hood emphasizes that investing in clean technologies can lead to better economic growth. “The flipside is that if we keep burning fossil fuels, it causes damage to the global economy and to New Zealand because we have more climate disasters to clean up,” she says.
This is not a new concept. The idea that reducing emissions doesn’t have to come at the cost of economic growth is supported by numerous studies. The European Union’s climate and energy policies have been shown to boost economic growth while reducing emissions.
The Role of Renewables in the Energy Mix
- Renewsables are generating an increasing proportion of our energy.
- New projects that would more than treble current renewable generation are planned, according to the Electricity Authority’s “Investment Pipeline” website.
The Climate Change Response (Zero Carbon) Amendment Act was passed in 2019, which has helped to drive the growth of the renewable energy sector. New Zealand has already made significant progress in reducing energy use, with renewables generating an increasing proportion of our energy.
However, to press “go” on these projects, developers need to know demand will be there. But there’s that odour – predictions by the Ministry for Business, Innovation and Employment state that resuming offshore oil and gas exploration and mining would lead to a substantial increase in emissions, largely from prolonged gas usage in the electricity, commercial, and industrial sectors.
Despite this, New Zealand has made significant progress in reducing energy use, and renewables are expected to play a major role in the future energy mix.
Conclusion
As we move forward, it’s clear that the government needs to take a more proactive approach to addressing climate change.
