The Climate Change Commission Advice Report: A review and submission Tailrisk Economics Principal: Ian Harrison Contact: e-mail:
[email protected] Ph. 0221753669 Part one: Introduction and overview This suBmission focuses primarily on the transport section the of Climate Change Commission’s report. We also comment on several structural decisions that drive many of the specific recommendations, in particular the decision to effectively move from a net to a gross zero carBon target. Our narrower focus does not mean that we necessarily agree with the Commission’s recommendations that we have not covered. The key recommendations on transport are that: electric vehicle suBsidies should introduced as a matter of urgency; no imported light internal comBustion engine (ICE) vehicles should Be registered from 2032 and that some form of emission standard should Be imposed Before that. The effect of these measures could Be to disrupt much of the used import car market, impacting primarily on the lower income people the Commission purports to 1 support. EV suBsidies could Be very expensive But the Commission has withheld any detail on these costs. In terms of getting to a suBstantially electrified vehicle fleet By 2050 this is all unnecessary. The electric car revolution is coming, But it may just Be a few years later arriving in New Zealand. If we simply impose a realistic carBon price and leave the market to work we will get were we want to Be. Moving early could initially cost well over $1000 per ton of carBon saved to the Benefit of urBan elites and virtue signalling corporates.