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ENERGY

Catch 22 for new industry?

Rejection of a proposal for a new industry is disappointing, says BusinessNZ. The Environmental Protection Authority has turned down an application by Trans-Tasman Resources Ltd to start a new industry in the Exclusive Economic Zone off the coast of Taranaki. The proposed enterprise would have established an under-sea iron sand mining industry, diversifying New Zealand’s extraction sector and creating new income streams and jobs in the Taranaki region. Trans-Tasman Resources Ltd spent seven years and $60 million to research and develop the application. The EPA turned the application down because of uncertainty around environmental effects. BusinessNZ Chief Executive Phil O’Reilly says the decision is a blow for prospects for new industries and growth in the Exclusive Economic Zone. “Any new industry is bound to have some uncertainties. Millions can be invested in researching and estimating the likely effects of a new industry without realistically being able to achieve absolute certainty about all outcomes.” Mr O’Reilly said the decision made it clear ‘that there was uncertainty and that in these circumstance the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 requires the EPA to favour caution’. “Business wants to be responsible and supports regulations to protect the environment, but will be wondering how much certainty is realistic,” Mr O’Reilly said. “No doubt the EPA has carried out its mandate in good faith, but business will be wondering about the effect of the decision on other new and emerging industries. “The rejection of an application to establish a new industry on the grounds of uncertainty – when 100% certainty for a completely new industry is impossible – may raise the question of whether our regulatory settings themselves may be preventing new industry from being established. “It would be unfortunate if this was the message being heard by potential investors in […]

Electric cars bring environmental benefits

 If electric vehicles were widely available, New Zealanders would buy enough of them to reduce greenhouse gas emissions from the transport sector by one-fifth over the next 18 years, new research from Victoria University of Wellington shows.  PhD researcher Doug Clover says there are currently only a couple of hundred electric vehicles on the road in New Zealand, but his study into the preferences of potential car buyers shows people are keen to purchase them. “I surveyed people intending to buy a car in the next five years and found that if electric vehicles were easy to buy now, 20 percent of those surveyed would choose them.” Doug then used a type of behavioural modelling known as discrete choice to estimate demand for electric vehicles up until 2030. His projections used the information gathered in his survey and scenarios of different levels of government support and different rates of improvement in electric vehicle (EV) technology.  “In all the scenarios,” says Doug, “plug-in hybrid cars (which can be switched to fuel when battery life runs out) are the most popular option, followed by city EVs, or small electric vehicles, with a range of around 100 kilometres.” Family car replacements – larger EVs which can seat five to seven people, tow a trailer and have a range of around 300 kilometres – were consistently the least popular option due to the high cost of batteries says Doug, never making up more than 12 percent of the EV fleet by 2030. But while Doug’s research found that EVs have potential to make a significant dent in the greenhouse gas emissions produced by cars and light vehicles in New Zealand, the gains would be wiped out by continued use of coal-fired electricity generation.  “Under current conditions, with a low price on carbon, it still […]

New energy efficiency initiatives on target

The Sustainable Business Council (SBC) and the BusinessNZ Energy Council (BEC) welcome this morning’s announcements from the Hon. Simon Bridges, Minister of Energy and Resources, targeting business sustainability initiatives. At a time of rising energy prices, and a desire for energy security, New Zealand business is increasingly focused on energy initiatives that make good business sense. Penny Nelson, Executive Director of the SBC, says “New Zealand businesses have identified energy efficiency as an important priority in helping them become more internationally competitive. “The announcement complements our resource efficiency work programme. As part of that we are partnering with EECA Business to support our members to drive greater energy efficiency through their value-chain and become more resilient as we transition to a low carbon economy.” Rob Whitney, Chair of the BEC, says “The World Energy Council Energy 2050 Scenarios show that energy efficiency is the single most important initiative in helping us achieve the Energy Trilemma of a sustainable, affordable and secure energy for all. “To reduce CO2 emissions to sustainable levels, we will need to at least double the global rate of energy efficiency improvement currently being achieved. “Today’s announcement of two business-focused initiatives, plus a third that targets fuel-efficient tyres, recognises this challenge.” These initiatives hopefully reflect a different model of business and government working in partnership to unlock businesses energy efficiency potential. The SBC and BEC will be working closely with EECA as it rolls out these initiatives. Their success will be measured by the extent they catalyse energy efficiency action across the wider economy.  

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