SUBMISSION Climate Change Policy Proposals

This submission by Oxfam New Zealand has been prepared in response to the five government position papers on climate change: • Measures to Reduce Greenhouse Gas Emissions in New Zealand Post-2012 (Ministry for the Environment) • Transitional Measures to Reduce New Zealand Greenhouse Gas Emissions Prior to 2012 (Ministry of Economic Development) • Draft New Zealand Energy Strategy to 2050 (Ministry of Economic Development) • Draft New Zealand Energy Efficiency and Conservation Strategy (Energy Efficiency and Conservation Authority) • Sustainable Land Management and Climate Change (Ministry of Agriculture & Forestry)

Contact Oxfam New Zealand Attn: Barry Coates, Executive Director 62 Aitken Terrace, Kingsland Auckland 1145 Tel: (9) 355-6500 www.oxfam.org.nz

Oxfam New Zealand Submission: Climate Change (30 March 2007) 1 I. Recommendations Oxfam New Zealand is a non-profit development organisation with programme activities concentrated in the Pacific and East Asia. We are principally concerned with assisting poor and vulnerable people in developing countries to mitigate and adapt to climate change (see Conclusion). We welcome this opportunity to comment on the set of five climate change policy proposals released for public consultation in December 2006. This submission is our first in-depth policy statement on climate change. Oxfam New Zealand is working closely with the other affiliates of Oxfam International, who have collectively identified climate change as one of the strategic priorities for the forthcoming five years. In New Zealand, Oxfam joined the Climate Defence Network (www.climatedefence.org.nz) in August 2006 and is seeking to build links with other organizations and scientific institutes. Oxfam New Zealand welcomes this initiative to develop coherent climate change policy, but is concerned that the five policy documents do not establish an overarching framework for how to address the significant and pressing challenges posed by climate change. The policies lack bold, achievable and measurable targets for action with staged milestones. There are also major omissions with respect to our international obligations under Kyoto and our ethical commitment to assist developing countries to adapt and mitigate against climate change. Oxfam New Zealand believes the government should: • Establish an overarching framework for climate change policy with bold, achievable and measurable targets for action including staged milestones; • Institute a carbon pricing system without delay. • Preserve and expand existing sinks, both land and sea, and engage in off-setting; • Initiate a range of measures to reduce emissions and to reduce demand for private road transport and non-renewable energy; • Address aviation emissions and demonstrate that goods produced domestically for export meet the highest environmental standards possible; • Push for strong, universal emissions reduction targets in international negotiations; • Commit funding, additional to the existing aid budget, and political support to a far larger global Adaptation Fund; • Mainstream climate change assessments into New Zealand’s development assistance programmes and advocate for international financial institutions and others to also undertake climate change mainstreaming; • Ensure that ethical dimensions of climate change, including both international and inter-generational equity, underlie New Zealand’s climate change policy framework.

Oxfam New Zealand Submission: Climate Change (30 March 2007) 2 II. Policy Comments 1. Oxfam New Zealand is concerned that New Zealand still does not have a set of policies to address climate change despite being a member of the 1997 Kyoto Protocol with a firm target to reduce our carbon emissions to what they were in 1990. Disappointingly little of the government’s 2002 policy package on climate change has been implemented. In 1999, New Zealand’s carbon emissions were caused primarily by the agriculture (49%) and energy (42%) sectors. The transport sector is however the fastest growing source of emissions. 2. Strong political leadership on climate change is needed if we are to achieve a truly sustainable economy. We welcome Prime Minister Helen Clark’s recent calls for New Zealand to aspire to be carbon neutral and the initiative to move the public service towards carbon neutrality. Such statements should not, however, obscure the fundamental need to set and meet emissions reductions targets. 3. New Zealand’s climate change policy requires bold, achievable and measurable objectives and targets. We need absolute and measurable targets to reduce greenhouse gas emissions, to increase energy efficiency, to shift transport modes, and for conversion to renewable energy. For instance, the overall transport goal proposes a resilient, low carbon transport system yet neither ‘resilient’ nor ‘low carbon’ is defined and the measures proposed are inadequate to meet this goal. 4. New Zealand urgently needs a robust cap on its greenhouse gas emissions including a comprehensive pricing system that ultimately covers all sectors. We must put a price on carbon. 5. The allocation of emissions permits must be carefully considered. Mechanisms for permit distribution are key considerations in developing an equitable system. We are concerned that “grand-parenting” could provide substantial windfall gains to polluters. Permits should not be issued in perpetuity. Much could be learned from New Zealand’s experience implementing the fisheries quota system. 6. Other options not covered by the policy proposals include auctions and a tradable permits scheme based upon individually allocated emissions entitlements. Both have their merits and should be considered. Permit auctioning gives the revenue to government, which can then be smartly recycled to achieve further emissions reductions and ensure equitable outcomes. 7. Priority should be given to preserving and expanding existing carbon sinks. The retention of existing sinks in marine areas, fisheries, wetlands, and soil are absent from the policy proposals. Greater emphasis should be placed on improving carbon storage in existing indigenous forests. 8. Measures to offset our carbon emissions are important and necessary, but second in priority to establishing a cap. Offsetting alters the short-term carbon cycle and could be used as a justification for continuing to add long-term carbon into this cycle. In planting new forests, for example, the policy proposals must consider the biodiversity implications and ecological impacts of offsetting with radiata pine or other non-natives.

Oxfam New Zealand Submission: Climate Change (30 March 2007) 3 9. Throughout the policy proposals too much focus is placed on the kind of power generation or transport needed (supply side) as opposed to reducing emissions and significantly reducing demand for motorized transport and for new energy generation. For example, by emphasizing fuel efficiencies and biofuels, the proposed transportation policy does little to encourage alternatives to private road transport and doesn't address the imperative to reduce the need for individualised motorised travel. A broader overview of the importance of sound urban planning is missing. There is a need for greater public education campaigns to create informed consumers. 10. The rapidly emerging demand for biofuels represents a significant opportunity for many developing countries, yet there are many drawbacks. Indonesia and Malaysia are experiencing severe deforestation brought about in part by the creation of massive oil palm plantations that has resulted in massive loss of biodiversity and numerous cases of abuse of customary land rights, displacement and violent conflict. In Brazil, soy production has displaced smallholder farmers and indigenous peoples and is currently held to be responsible for more destruction of the Amazon than either logging or ranching. New Zealand should carefully consider these and other issues in the importation and use of biofuels. A holistic understanding of the biodiversity and other impacts is essential in the development of a domestic biofuel industry. 11. The transportation section of the policy proposals includes some useful principles, but carbon emissions from aviation are conspicuously absent. While these are not included in the Kyoto Protocol, aviation emissions are significant and should be considered not least because their growth has the potential to swamp carbon reductions in other areas. 12. New Zealand cannot afford to sidetrack aviation issues. Our economy is heavily dependent upon sending produce long distance as well as revenue from international tourism. Internationally, major buyers of NZ products are beginning to initiate full carbon accounting on both distance travel and the production system. The calculation of these food miles could potentially discriminate unfairly against long distance trade. As a leader in global trade talks our actions will be closely watched. Our actions and stance on aviation emissions could assist developing countries facing similar constraints on their exports. As a proponent of free trade, we have a responsibility to develop climate- friendly trade for a world of carbon conscious consumers. 13. We must consider our own carbon footprint as well as our greenhouse gas footprint from aviation and other emissions. For example, New Zealand dairy products may have a low carbon footprint if shipped by sea and not air, but our greenhouse gas emissions could be high if methane is factored in. We need to be able to show that our domestic production meets the highest environmental standards possible by reducing energy intensive land uses. We need to reducing methane emissions, particularly from dairy, as well as control nitrogen use on agricultural land. 14. The world urgently needs strong leadership to deliver a fair, effective and equitable international agreement on climate change. Negotiations on carbon emission reduction commitments need to commence immediately if they are to be concluded in time for the next Kyoto Protocol period (post -2012) of the United Nations Framework Convention on Climate Change.

Oxfam New Zealand Submission: Climate Change (30 March 2007) 4 15. Current levels of emissions quotas under the Kyoto Protocol are not strong enough to prevent dangerous climate change. To avoid catastrophic climate change, the average global temperature increase must be kept under 2 degrees centigrade relative to pre- industrial levels, roughly the equivalent of keeping emissions below 450 parts per million (CO2 equivalent) with a peak and irreversible decline in global emissions by 2015. 16. New Zealand should use its influence on the international stage to push for strong, mandatory emission reduction targets for the second Kyoto commitment period (post 2012). We should pressure the Protocol’s non-States Parties, especially Australia and the United States, to take aggressive steps to reduce their greenhouse gas emissions. We should ensure that major international meetings, such as the 13th Conference of Parties to the Kyoto Protocol to be held in Bali in December 2007, set measurable goals that are defined by concrete timelines. 17. Most developing countries, especially those in the Pacific, are not major polluters yet they are facing a multitude of threats brought on by climate change. Developing countries require assistance to deal with these threats and the World Bank has estimated that the cost of ‘climate proofing’ development will require between $10 and $30 billion per year. Yet the global Climate Adaptation Fund, supported by a two per cent levy on proceeds of carbon sales from Clean Development Mechanism projects, had just $3 million committed as of November 2006. New Zealand should work to ensure that by the end of 2007 the Adaptation Fund is operational and adequately funded, including by commit funding that is additional to the existing aid budget. 18. New climate-proof and climate-friendly models of development are needed. Poor people must be at the centre of planning responses that affect them, and empowered to be part of solutions. A systematic approach should be taken to ‘mainstream’ climate change into New Zealand’s development assistance programme. New Zealand should encourage the development and use of sustainable energy in the Pacific and increase its focus on conservation of natural resources, such as coral reefs and forests to maintain and, where possible expand existing carbon sinks. Climate change risks should be incorporated into the design and implementation of disaster risk reduction strategies. New Zealand should increase its assistance to so-called climate refugees, those people displaced by climate change, as we have done for Tuvalu. 19. Much of the growth in fossil fuel use for power generation has been funded by the multilateral institutions, notably the World Bank in countries such as India and China. New Zealand should use its shareholding in international financial institutions and other multilateral bodies to press for an assessment of the ways in which developing countries can be supported to pursue sustainable development, rather than growth at any cost. 20. In addition, it is vital that New Zealand makes available additional resources to support the development and implementation of mitigation strategies for development partners. These resources should not represent a diversion away from existing poverty reduction programmes, but must be truly additional. 21. Oxfam New Zealand is concerned that climate change will further increase inequalities between generations and internationally. Poor people and countries are least responsible for climate change, but affected first and worst. Northern societies are primarily responsible for global warming. Current and historical emissions of rich

Oxfam New Zealand Submission: Climate Change (30 March 2007) 5 countries have exceeded their equal (per-capita) share. Increasingly, developing country governments bear some responsibility for climate-related disasters too (e.g. deforestation, flooding, drought, desertification), and need to intensify their efforts to reverse local environmental degradation. 22. It is increasingly evident that no amount of funds will enable some communities to survive climate change. For instance, certain small island states face complete eradication from rising sea levels. Their plight raises important legal and moral policy issues. What compensation and/or other obligations do developed countries such as New Zealand have to vulnerable states that face complete eradication from climate change? III. Conclusion This submission reflects the views of Oxfam New Zealand, one of 13 Oxfam affiliates comprising the Oxfam International confederation that is active in over 100 countries worldwide. Oxfam’s programmes in Africa, Asia, and Latin America are already witnessing the serious impacts of climate change as demonstrated by worsening food and water shortages, more health epidemics, and devastated agricultural livelihoods. In the Pacific, we are increasingly finding our work challenged by climate change as sea levels rise, fresh water becomes less available, and severe weather events such as cyclones increase in their frequency and intensity. We are primarily concerned with the devastating impact that climate change will have, and is already having, on the lives and livelihoods of poor people in developing countries. Climate change threatens to undermine decades of poverty alleviation and human development by non-governmental organizations such as Oxfam. Achievement of the Millennium Development Goals is under threat from unmitigated climate change. Developed nations have a responsibility to take urgent action to control emissions and support more sustainable forms of development in the developing world. New Zealand potentially has an important role to play. Oxfam is committed to working toward a collective understanding of the threats posed by climate change. We intend to share the best of our knowledge about how to build human and ecosystem resilience and live with the degree of global warming that is now unstoppable. Oxfam intends to do everything in its power to stop dangerous climate change and help bring about a global solution that is fair and rooted in intra-generational and inter-generational equity. ends

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