A new report shows firms with high energy use working responsibly towards climate goals.
A report by Castalia Strategic Advisors shows that EITE (Emission Intensive and Trade Exposed) businesses are proactively reducing emissions and have a common interest in helping the Government to meet its international climate change obligations.
(Emissions-intensive firms use significant amounts of energy to create their products. Trade-exposed firms sell products overseas in competition with overseas firms. Firms that are both emissions-intensive and trade-exposed bear the cost of reducing emissions while competing against overseas firms that do not bear similar costs.)
The report shows that New Zealand’s EITE businesses are a significant segment of the economy, employing around 15,000 New Zealanders.
The businesses, members of a BusinessNZ EITE working group, want to help the Government achieve workable emissions reduction policies and an energy-intensive sector that is responsive to climate change policies.
BusinessNZ Chief Executive Kirk Hope says EITE businesses want to see emissions reduction policies that take account of unintended consequences and potential risks to the economy.
“For example, there is a risk of uncompetitive emissions pricing forcing domestic businesses to close, with production shifting to countries with higher emissions intensity.
“The EITE group is seeking ongoing and constructive dialogue with the Government to help ensure that unnecessary trade-offs are avoided, and investment can be encouraged.
“EITE businesses produce goods that form the backbone of our economy including fresh food, building materials, critical industrial chemicals, and industrial metals.
“EITE businesses create jobs, wealth and regional diversification, and contribute significantly to higher living standards for all New Zealanders.
“Any emissions reduction policy must consider the economic and social impacts it will have on this important sector.
“Predictable and durable policy settings are the cornerstone to unlocking greater investment in low-emission initiatives, and we welcome any opportunity to work with the Government as it develops its plan to achieve its emissions reduction targets.”
The Castalia report: