Friday, March 29, 2024

OECD heat goes on gas and water

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Substantial economic growth built on expanding primary exports has started to push the country to its environmental limits, the Organisation for Economic Co-operation and Development says.
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New Zealand’s environmental gains were offset by issues around greenhouse gas emissions, freshwater standards and biodiversity loss.

The latest OECD report on the country’s environmental performance gave NZ something of a C+ with significant room for improvement in areas where it now lagged behind other developed countries.

The report’s tone ran in a “well done … but” vein on the country’s efforts to maintain biodiversity, air and water quality.

It identified areas of strengths like the adoption of the National Policy Statement for Freshwater Management to encourage more collaborative community involvement.

But the report’s authors noted progress was slow and required more Government support to accelerate implementation of the reform to provide a more certain investment environment.

And in a week when water charges were kicked around by all political parties including those in the Government, the report also recommended charging water abstraction rentals.

It also detected conflicts between the national freshwater standards being set and the Government’s $400 million irrigation fund that failed to reconcile with those standards.

“There is a risk of financial support for irrigation increasing pressures on freshwater resources, especially if more efficient irrigation techniques simply allow an increase in irrigated volume or area,”  the report said.

It urged a more holistic “natural capital” accounting approach to help evaluate the costs and benefits of investment in those projects.

NZ Freshwater Sciences Society president Marc Shallenberg said the report highlighted some of the innovative things NZ had done in the past to deal with freshwater, including the Lake Taupo nitrogen cap and trade scheme and the collaborative approach to the Waikato River Healthy Rivers plan.

However, he shared its concerns over the conflict between irrigation and water quality.

“It suggests irrigation funding should be contingent on providing demonstrable environmental outcomes.”

He also agreed with the report’s recommendations to put pollution charges in place, giving some relief to taxpayers and putting dollar values on ecosystem services.

Irrigation NZ chief executive Andrew Curtis said he was intrigued about who the report authors spoke to.

“All projects that are under way including the Central Plains scheme are allowing for environmental outcomes.

“The Central Plains scheme has ground water controls, there is flow augmentation for the Selwyn River and a recharge programme on the Hinds system.”

Curtis said INZ was watching with concern Government and industry commentary on the possibility of charging for water.

“We do not think this is an intelligent move. What is the purpose here? If it is for irrigation efficiency or environmental management, there are better ways to achieve that.”

The irrigation sector already paid through higher rates charges on improved land and made increased economic contributions to rural districts through greater productivity.

Estimates were that a charge on water in a district like Waitaki could result in $60m-$80m taken out of its economy.

Massey University energy research centre director Professor Ralph Sims said the country also continued to get a fail grade on greenhouse gas losses in the report.

“There is no strategic plan to reduce emissions to meet our target under the Paris Climate Agreement, the Emissions Trading Scheme (ETS) has been ineffective and cannot solve the problem without implementing other policies.”

Despite the Government’s continued assertions agriculture would not be included in the ETS it had to play a part.

NZ’s emissions had continued to rise, up 6% since 2010 while the OECD average had dropped by 5%.

Sims said there had been “more than enough” reports on NZ’s lack of progress and opportunities for mitigation.

“It is time to get on with cost-effectively reducing our greenhouse gas emission and reaping the co-benefits, starting now.”

Environment Minister Nick Smith said challenges remained on climate change, freshwater management and biodiversity and he hoped the environmental report card would help sharpen future direction and aspirations.

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