EnergyWatch The Journal of the Sustainable Energy Forum “Facilitating the use of energy for economic, environmental and social sustainability” ISSN 1173-5449 Issue 15, July/August 2000 Published by the Sustainable Energy Forum Inc, P O Box 11 152, Wellington E-mail [email protected] Editor: Kerry Wood Change in the wind After nine months in power, this government’s only necessary or possible remedy for every real or sustainable energy outlook is moving from fingers- imagined ill. But it is quite another to mistake crossed to hopeful, encouraging and even very intentions, expectations and plans for ‘real’ action. encouraging. The EECA Act and the commitment Greater efforts are needed now if the government’s to ratifying the Kyoto Protocol were covered in our very laudable aims are to be met, such as: last issue. In this issue we cover: • A focus on the long-term. New technologies • Prime Minister Helen Clark’s speech to the such as windfarms or hypercars need the Redesigning Resources conference, setting out a spadework done now if they are to be effective wide-ranging agenda on page 2 by the start of the Kyoto commitment period. • Less positively, Molly Melhuish’s paper from the SEF conference, outlining the tangle of • A ‘think resources’ campaign aimed at both contracts, contacts and culture to be cut out individuals and businesses, focusing on before electricity reform is effective. See page 4 attitudes to the squandering of resources. • The recommendations of the Caygill Inquiry, • A close look at what can be salvaged from the presented with some comment by others—and wreck of the Maui Contract, and the balance of at least half a cheer—on page 8 payments blowout that must follow. • A report on the SEF conference, and Ralph • A broad interpretation of the recommendations Sims’ missing paper, starting on page 10 of the Caygill Inquiry when draughting • Some encouraging slants on sustainability from legislation, to favour embedded generation: see a transport forum run by Wellington Regional the commentary on page 9. Council, on page 15 • Buy Annette King a bicycle, not a Beetle. • A report on the EECA cycling conference at Massey, another encouraging sign of change, on page 17 SEF Conference • A summary of the environmental performance The French phone system seemed to wreck indicators proposed by MfE, on page 19 Ralph Sims’ teleconference presentation to the • Amory Lovins’ visit to New Zealand. (Sorry, SEF conference, on the World Renewable EnergyWatch is full: try the September edition) Energy Conference; a test run from the UK was fine. His presentation-that-never-was is in So what has been achieved? Well, more-or-less shortened form on page 11, and will be in the nothing actually. It is too much to expect on-the- conference proceedings in full. ground results so soon, especially when following Our apologies to conference delegates and a government committed to ‘more market’ as the especially the link’s sponsor, WEL Energy. EnergyWatch 15 Page 1 July/August 2000 by some business elements, but that will not stop New directions for us engaging with the vast majority of NZ business, large and small, which does not want to spend its New Zealand precious time and energy fighting the government for no good reason. An edited version of Prime Minister Helen We have set up a joint central–local government Clark’s speech to the Redesigning Resources forum to take forward our shared vision for local Conference, Christchurch 26/6/2000 economic development, social cohesion, and environmental sustainability—that triple bottom The written work on the natural capitalism concept line again. We have a deep commitment to civil which is central to this conference provides many society and to participation by it in addressing the insights. Within our country there are corporates, challenges the country faces. government agencies, and local government councils committed to a sustainable future: The In this year’s Budget we announced the steps we Warehouse, committed to a goal of zero waste to were taking to build a more sustainable economy landfill; Christchurch City, committed to the same and society and to sustain our environment. Let goal by 2020; and Landcare Research, which has me focus briefly on each of these areas. incorporated the concepts of natural capitalism into not only its own operations, but into its The Economy science as well. Through investing significantly more in education, I particularly applaud the leadership given by the science and research, we are working to speed our NZ Business Council for Sustainable Development, transition away from a low value, commodity- which has committed itself to the triple bottom line based economy to higher value enterprise driven of economic, environmental, and social by knowledge, skill, and technology. That’s why sustainability. The Council is working for: we are lowering the costs of tertiary education. That’s why we have increased funding for science, • A healthy and diverse economy which adapts research and technology by 10% or $M 43. Half of to change, provides long term security and that extra funding will go out to the private sector recognises social and ecological limits; in grants to back smart ideas for new products and services. There is also greatly increased funding for • A healthy and diverse ecological system which basic research which has the potential long term to continually performs life-sustaining functions create new areas of potential for business. and provides other resources; and And surely one of the growth areas of business in • A social foundation NZ today and for our exports which provides health, These challenges are huge—and is in the area of applying fosters participation, the biggest of them is meeting our smart solutions to business, respects cultural international commitments under like those being trialed in our diversity, is equitable, the Kyoto Protocol on climate progressive companies, cities, and considers the needs change. and research institutes today. of future generations. We have established a I have set out the Council’s Ministry of Economic goals in detail because they are entirely consistent Development, required to promote sustainable with our goals for the future of our country. I development which meets the needs of the present cannot overstate how excited I was to find in the generation without compromising the ability of corporate sector a group willing to stand up for a future generations to meet their own needs. The vision for our future which combines the Ministry and an associated agency, Industry New economic, the environmental, and the social. My Zealand, have $M 330 over four years for their challenge today is to groups across these three programmes. They will be able to back new often compartmentalised sectors to buy into that innovative companies with early stage financing, integrated vision. and support the development and promotion of sustainable economic strategies in the regions. We have had very useful contact with the Council, They will have industry specialists and grants to and with countless individual companies. I am work with and support New Zealand companies frankly disappointed with the politicised attacks with growth potential as yet untapped. They will on this mainstream social democratic government work with Trade New Zealand to attract smart EnergyWatch 15 Page 2 July/August 2000 investment which contributes to development of enhancing the capacity to use and manage an enhanced skills and technology base. ecosystems efficiently and effectively; Addressing the Environmental Challenges • Sustainable management of the productive sector’s environment. These challenges are huge—and the biggest of them is meeting our international commitments All New Zealanders know of the steps the new under the Kyoto Protocol, which we want to ratify government has taken to stop the extraction of by the time of the Rio Plus Ten Conference in mid- native timber from Crown owned forests. The 2002. That means that we must stabilise our decision embroiled us in an unpleasant debate greenhouse gas emissions at 1990 levels, on with some West Coast interests. But the outcome, average, over the period 2008-2012. Unfortunately we believe, is a win for New Zealand and for the that is easier said than done. The latest information Coast. Those great forests are preserved for we have suggests that New Zealand’s gross CO2 posterity, for future recreational use, and for their emissions have risen 19.2% since 1990, up from the intrinsic values, and the West Coast gets a fresh 14% growth between 1990 and 1998, and an start for truly sustainable development with a average annual growth of 2%. large regional development fund. Energy efficiency in New Zealand is poor, so Closing the Gaps improving it must be one of the first steps in containing emissions. The Energy Efficiency and New Zealand has had faster growth in inequality Conservation Authority, EECA, has been set up as in the past fifteen years than any other country in a Crown entity with an enduring role to promote the developed world. That inequality has had a energy efficiency and renewable energy across all unique and unfortunate dimension. There has been sectors of the economy. It also empowers a growing disparity between the life chances of regulations to implement Maori and other New product energy efficiency Zealanders, and Pacific standards and labeling, as well As a nation we can commit to peoples and other New as the disclosure of energy that triple bottom line—and be Zealanders. It is simply not efficiency statistics. It has been the better for it. tolerable to our government given a $M 3.0 funding boost. to see tangata whenua consigned permanently to the The Act also mandates status of disadvantaged development of a National Energy Efficiency and citizens in their own land.