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Official Information Act Response 20190590

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Official Information Act Response 20190590 Reference: 20190590 20 September 2019 s9(2)(a) Thank you for your Official Information Act request, received on 25 August 2019. You requested the following: I request a copy of the following documents: 1. Treasury Report T2019/974: Framework for policy intervention for climate change – 17 April 2019 2. Treasury Report T2019/1000: New Zealand Green Investment Finance: Due Diligence Meetings Outcomes – 24 April 2019 3. Aide Memoire T2019/1028: Aide Memoire: Commercial Performance State of Play as at 11 April 2019 – 17 April 2019 4. Treasury Report T2019/573: The Treasury’s 2018/19 Quarter Two Performance Report – 12 March 2019 5. Aide Memoire T2019/701: Public service protocols for costing political party policies – 15 March 2019 Information being released Please find enclosed the following documents: Item Date Document Description 1. 17 April 2019 Treasury Report T2019/974: Framework for policy intervention for climate change 2. 24 April 2019 Treasury Report T2019/1000: New Zealand Green Investment Finance: Due Diligence Meetings Outcomes 3. 17 April 2019 Aide Memoire T2019/1028: Aide Memoire: Commercial Performance State of Play as at 11 April 2019 I have decided to release the documents listed above, subject to information being withheld under one or more of the following sections of the Official Information Act, as applicable: 1 The Terrace PO Box 3724 Wellington 6140 New Zealand tel. +64-4-472-2733 https://treasury.govt.nz • personal contact details of officials, under section 9(2)(a) – to protect the privacy of natural persons, including that of deceased natural persons, • advice still under consideration, section 9(2)(f)(iv) – to maintain the current constitutional conventions protecting the confidentiality of advice tendered by Ministers and officials, • 9(2)(ba)(i) – to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied • names and contact details of junior officials and certain sensitive advice, under section 9(2)(g)(i) – to maintain the effective conduct of public affairs through the free and frank expression of opinions, • commercially sensitive information, under section 9(2)(b)(ii) – to protect the commercial position of the person who supplied the information, or who is the subject of the information, • direct dial phone numbers of officials, under section 9(2)(k) – to prevent the disclosure of information for improper gain or improper advantage. Direct dial phone numbers of officials have been redacted under section 9(2)(k) in order to reduce the possibility of staff being exposed to phishing and other scams. This is because information released under the OIA may end up in the public domain, for example, on websites including Treasury’s website. Information to be Withheld I have decided to withhold the document listed in the table below in full, under the following section of the Official Information Act: • advice still under consideration, section 9(2)(f)(iv) – to maintain the current constitutional conventions protecting the confidentiality of advice tendered by Ministers and officials, and Item Date Document Description Public service protocols for costing political party policies – 15 1. 15 March 2019 March 2019 In making my decision, I have considered the public interest considerations in section 9(1) of the Official Information Act. 2 Partial Extension of Request Under section 15(a) of the Official Information Act I have decided to extend the deadline for making a decision on your request for the document listed in the table below by 20 working days. This is to allow for the consultations required in order to make a decision on your request. Item Date Document Description 1. 12 March 2019 Treasury Report T2019/573: The Treasury’s 2018/19 Quarter Two Performance Report Subsequently the due date for making a decision on the request for this information will be 18 October 2019. Notwithstanding this extension I will communicate my decision to you on this information as soon as possible. Please note that this letter (with your personal details removed) and enclosed documents may be published on the Treasury website. This reply addresses the information you requested. You have the right to ask the Ombudsman to investigate and review my decision. Yours sincerely David Hammond Team Leader Ministerial Advisory 3 20190590 Table Of Contents 1. Treasury Report Framework for policy intervention for climate change 1 2. Treasury Report New Zealand Green Investment Finance Due Diligence Meetings 10 Outcomes 3. Aide Memoire Commercial Performance State of Play as at 28 March 2019 17 20190590 Doc 1 Page 1 of 21 IN-CONFIDENCE Treasury Report: Framework for policy intervention for climate change Date: 5 April 2019 Report No: T2019/974 File Number: SH-10-8 Action Sought Action Sought Deadline Minister of Finance (Hon Grant Note the contents of this report. 19 April 2019 Robertson) Associate Minister of Finance (Hon Note the contents of this report. 19 April 2019 David Parker) Associate Minister of Finance (Hon Note the contents of this report. 19 April 2019 Shane Jones) Associate Minister of Finance (Hon Note the contents of this report. 19 April 2019 James Shaw) Contact for Telephone Discussion (if required) Name Position Telephone 1st Contact Maria-Krystyna Duval Senior Analyst, Transition s9(2)(k) N/A and Regional Economic (mob) Development Natalie Labuschagne Policy Manager, Transition N/A and Regional Economic (mob) Development Actions for the Minister’s Office Staff (if required) Return the signed report to Treasury. Note any feedback on the quality of the report Enclosure: No Treasury:4093144v1 IN-CONFIDENCE 20190590 Doc 1 Page 2 of 21 IN-CONFIDENCE Treasury Report: Framework for policy intervention for climate change Executive Summary s9(2)(f)(iv) s9(2)(g)(i) The primary way to mitigate the distributional impacts on households associated with a rising price is through the adoption of a well-designed price ceiling, which if set at an appropriate level, can still drive necessary abatement but mitigate the impact on households, sectors and regions. The Government also has a toolbox of support measures at its disposal to smooth the transition over time and share the burden of the transition in a just and equitable way. Support measures can be costly, but they should be considered in the context of the co- benefits of early climate action and this Government’s aims for a just transition. We can predict some of the likely distributional impacts of climate change policy, but considerable uncertainty will remain for the time being, making a whole-of-government approach to climate change policy essential. Recommended Action We recommend that you: a note that there are some important upcoming policy decisions on climate change policy b note that the most critical decisions over the next few months relate to reform of the Emissions Trading Scheme (ETS) c note that the Treasury recommends an ETS-first approach to the transition to a low- emissions economy d note that the adoption of substituting complementary measures should be carefully considered because such measures interact with the ETS in unpredictable ways and will increase the overall cost of abatement without lowering the overall amount of emissions T2019/974 : Treasury Report: Framework for policy intervention for climate change Page 2 IN-CONFIDENCE 20190590 Doc 1 Page 3 of 21 IN-CONFIDENCE e note that Ministers have a toolbox of support measures that they can deploy to mitigate the regressive impacts of the ETS Natalie Labuschagne Policy Manager Hon Grant Robertson Minister of Finance Hon David Parker Associate Minister of Finance Hon Shane Jones Associate Minister of Finance Hon James Shaw Associate Minister of Finance T2019/974 : Treasury Report: Framework for policy intervention for climate change Page 3 IN-CONFIDENCE 20190590 Doc 1 Page 4 of 21 IN-CONFIDENCE Treasury Report: Framework for policy intervention for climate change Purpose of Report 1. Over the next few months, Cabinet will consider a series of policy interventions to lower emissions to meet New Zealand’s greenhouse gas emissions reduction targets to meet both its (upcoming) domestic 2050 targets and its international 2030 target under the Paris Agreement (the Targets). These will include decisions on how to reform the Emissions Trading Scheme (the ETS), policy packages to drive down emissions in the transport and process heat sectors, as well as decisions that will target the agricultural sector from a climate change and freshwater perspective. 2. This report aims to provide you with a framework to consider how to prioritise these decisions to ensure that the Targets are met in a manner that shares the burden across the economy and supports increased living standards for New Zealanders throughout the transition. Analysis Purpose and strength of the ETS 3. The Government has signalled a firm intention to considerably lower greenhouse gas (GHG) emissions by 2030 under the Paris Agreement and by 2050 at the domestic level. To achieve success with these twin goals, policy intervention will be needed to correct three market failures: unpriced environmental externalities; the public good nature of investment in research and innovation; and imperfect information which may prevent sufficient knowledge spillovers, take-up in new technologies, or ways of doing things to drive the transition Pricing environmental externalities 4. The first market failure can be overcome by effectively pricing environmental externalities. The Government can price environmental externalities either through a new emissions tax or the existing ETS. The Treasury’s view is that a reformed ETS remains the key policy tool to achieve the Targets.
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