Pillar 3: Capitalising on business opportunities
Governments and businesses around the world are investing heavily in finding solutions to climate change problems. This creates tremendous opportunities to develop and commercialise new technologies, ideas and systems to both reduce greenhouse gas emissions and better manage the effects of climate change.
Agriculture and forestry are two areas where New Zealand has technical expertise and world-leading research capability. In agriculture particularly, New Zealand has powerful incentives to develop new ways to reduce greenhouse gas emissions. Some of the possibilities now being researched include new types of grass, new management regimes, feed and soil additives, and animal breeding.
If such technologies can be developed successfully, they may find ready markets in countries with strong pastorally-based agricultural sectors – for instance, Australia, Ireland, Brazil, Argentina, and parts of Africa.
Some other possible business opportunities include:
- Bioenergy from agriculture and forestry crops, residues and wastes
- International carbon markets creating demand for mitigation technologies in both forestry and agriculture
- Generation of carbon credits as a primary or additional income stream
- Development of energy efficient systems and products
- Distribution of renewable energy technologies for primary industry businesses to reduce costs and greenhouse gas impact, and enhance energy security
- Leasing of land for renewable energy production, including wind farms
- Development of sustainable, low-energy alternatives to high-energy products such as concrete, steel, and aluminium. These could include new wood products, polymers and other biomaterials[12]
- Provision of advisory services to land managers, both in New Zealand and around the world, on mitigating and adapting to climate change
- Promotion and development of initiatives such as carbon-neutral products
- Marketing our export dairy, meat and horticultural products on the basis of their low through-life net greenhouse gas impact.
New technologies and management regimes to enhance carbon sequestration in soils
Researching, developing, commercialising and marketing new ways to address climate change requires an integrated and managed approach. Some investors will keep this process in-house, reflecting both their internal capability and the competitive advantage they hope to gain from any new technologies. However, there may be areas where a more collaborative approach is required, including government-sector collaboration.
With this in mind, the Plan of Action could include agreed ways for the Government and sectors to work together in areas such as:
- Identifying specific initiatives to create business opportunities. For example, the Permanent Forest Sink Initiative has been put in place to provide owners of marginal farm land with the opportunity to ‘farm carbon’ as an alternative commercial land use
- Facilitating the creation of markets for emission-reducing technologies, so that the private sector can derive commercial benefit from investment in them
- Identifying where resources are needed for the research and development of technologies, and agreeing on ways to prioritise and fund such activities
- Raising public awareness of the advantages and importance of adopting new technologies
- Considering where regulation and procurement policies might be used to aid the adoption of emission reduction technologies.
Identifying and overcoming barriers to the development of business opportunities, and agreeing strategies to remove barriers such as domestic and international regulatory approval requirements
Questions: Business opportunities
Please record your answers in the submissions pages at the back of this publication, or you can file online at www.maf.govt.nz/climatechange .
11. Are there any other ideas you would like to put forward regarding potential business opportunities?
12. How important do you think it is that the proposed Plan of Action includes actions to capitalise on business opportunities?
13. If you think this is important, who do you think should lead the process of identifying and developing new business opportunities: the Government, sectors, or a Government-sector partnership?
14. Are there any other comments you would like to make on any of the business opportunities outlined in Pillar 3, or any other ideas you would like to raise?
Pillar 4: Working together
The Government recognises that aspects of climate change can be difficult and controversial. It wants to put in place a way of working that welcomes different views, and accepts that people have a right to disagree with proposals that may be made. We are looking for a durable and constructive relationship between the different groups and interests involved. Good relationships will help all concerned to identify key issues, create better solutions, make the most of opportunities and ensure informed decision-making.
Pillar 4 sets out how the agriculture and forestry sectors, and central and local government, can work together to develop, implement, monitor and review initiatives under the Plan of Action.
The Government is keen to establish active engagement between central government, local government and the land management sectors, not only under the pillars in the Plan of Action, but in other areas too, to achieve the best possible outcomes for New Zealand and the sectors. This could be done by:
- Making links between the Plan of Action and other initiatives with connections to climate change (discussed in the ‘Linkages’ sub-section below)
- The land management sectors providing the Government with strategic advice on climate change issues, and what these mean for the sectors and New Zealand’s export trade.
Developing and negotiating an international climate change framework for post-2012
Linkages to other initiatives
The Plan of Action will have important links with a number of other central government programmes aimed at addressing broader environmental issues, including water quality, water allocation, flood protection, soil erosion and industry development. Similarly, many of the actions taken under these other programmes have the potential to deliver climate change benefits. A summary of these government programmes is set out in Annex 1.
It is not only central government programmes that are relevant to the Plan of Action. Some sector groups are also developing and implementing their own major initiatives, such as the Dairying and Clean Streams Accord, the Pastoral Greenhouse Gas Research Consortium, the Dairy Industry Strategy for Sustainable Environmental Management and the Forest Industry Development Agenda. These, too, need to be considered in any Plan of Action. A more detailed list of sector initiatives is set out in Annex 2.
It is important that all parties remain informed on the actions and initiatives being undertaken. Equally, it is important that people working in each of these areas are informed about what is being done under the Plan of Action. This should minimise overlaps and help secure maximum shared benefits.
The Government does not believe other government and private sector initiatives are substitutes for a specific Plan of Action for the land management sectors. Rather, they are complementary.
A further point is that Resource Management Act-based measures relating to water use and management are being explored as part of the Water Programme of Action. Officials will report to Cabinet on this in March 2007. Their report will include specific analysis of National Policy Statements and National Environmental Standards covering the effects of agricultural production on water quality, including conversion of forests to farms.
Local authorities are also likely to continue assessing how their own rules may be developed to avoid or mitigate the undesirable environmental effects of land management activities, and how regulations could be used to complement land management incentives.
Developments under other programmes could have implications for climate change policies, and it will be important to develop and review the Plan of Action bearing all new measures in mind.
Joint engagement
The nature of engagement between the Government and sectors will depend on the circumstances and the actions being taken.
Some initiatives will require highly collaborative and more formalised engagement, perhaps to the extent of joint governance and funding of actions. The current research programme undertaken by the Pastoral Greenhouse Gas Research Consortium is one such example.
Other examples of where the Government would like to explore collaborative arrangements with the sector include:
- Rolling out new practices and technologies to land managers
- Communication to stakeholders and the public
- Identifying barriers to business opportunities
Demonstration farms
In other areas, engagement may take the form of consultation on proposals rather than full collaboration. Initiatives in this category might include:
- Measures to address deforestation
- Possible price-based or regulatory measures to reduce agricultural emissions.
Afforestation measures
Participation
Working together on climate change issues is complex and multifaceted. It also requires a degree of institutional knowledge and time commitment if it is to progress successfully. Parties who engage in the Plan of Action will need to be prepared to commit significant human resources over a sustained period of time.
Those who may not be in a position to commit such resources will continue to be consulted when key initiatives are developed.
What we are seeking from you
Indications of your commitment to, interest in, and creative ideas for the issues and questions discussed under Pillar 4: Working together.
Questions: Working together
Please record your answers in the submissions pages at the back of this publication, or you can file online at www.maf.govt.nz/climatechange .
15. Do you have any comments on the proposals and ideas about the Government, local government and sectors working together on the proposed Plan of Action? Your answer could include any different ideas you might have.
16. How supportive are you of the land management sectors working together with local and central government under the proposed Plan of Action?
[12] The rules of the Kyoto Protocol currently do not recognise the climate change value of storing carbon in the form of wood products. New Zealand is engaged in an international negotiation process to address this issue.
Contact for Enquiries
Sustainable Land Management and Climate Change
MAF
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 CLIMATE (254 628)
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