The Kyoto Protocol: A New Zealand Industry View

The extent to which man's activities are influencing the earth's climate is subject to considerable debate. Internationally however, this debate has been put aside somewhat by the Kyoto Protocol. This international agreement is the political response to the threat of Global warming, predicated on the precautionary principle.NZ is seeking to be a leader in the Kyoto Protocol. Given our unique GHG emission profile and the structure of our economy, and the major uncertainties in both the science of climate change and the Kyoto Protocol itself, this desire to lead is absolutely inappropriate in this instance. We face a different, and often more severe, set of challenges in an economy that prices C emissions than virtually all of our trading partners. Unfortunately, these differences have not been reflected in climate change policy development to date. This represents a major threat to New Zealand's economy, wealth and jobs, particularly in the sectors that have been the core drivers of our economy over the last 20 years or so - agriculture, energy, primary processing. We do not, and should not, seek to avoid the issue but we must protect our economy and move with or follow our trading partners and competitors, not lead them.