Climate Change: The biggest disruption and opportunity in our lifetime

14 February 2018

9. Abbie ReynoldsThe Sustainable Business Council has publicly released its submission to the Productivity Commission on the transition to a low emissions economy. It represents the views of New Zealand’s leading businesses like Air New Zealand, Vector and The Warehouse. Executive Director, Abbie Reynolds, introduces the key themes, urging businesses to take advantage of the opportunities for innovation and investment.

Climate Change is arguably the single greatest issue facing society today.

Already, we are seeing the effects creep into our daily lives, with an increasing number of extreme weather events causing destructive storm surges, hurricanes, floods and droughts.

And in business we are also seeing the effects, as consumers, shareholders and businesses move their investments away from fossil fuels, and demand to know more about the environmental impact of the goods and services they buy.

The Sustainable Business Council believes Aotearoa’s transition to a low emissions economy is an enormous business opportunity. Dr Matthew Bell, from Ernst and Young, has described it as not only the largest economic disruption in our lifetimes, but also the greatest driver of innovation since World War Two.

Research from the international Business and Sustainable Development Commission estimates global development to meet the UN Global Goals could unlock new markets worth US $12 trillion and a whopping 380 million jobs.

Forward-thinking companies get it. Many of our members know they cannot afford to be left behind, as the world makes transformative change and embraces new, low emissions business models. They want to position New Zealand so it can benefit from the challenge. They want to be part of the solution.

And already, we are in a great position to do this. We are the envy of Energy Ministers around the world, with our electricity system that is 85 per cent renewable. We have invented and invested significantly in geothermal and wind technologies, putting us well ahead of the pack. We have the fourth largest installed geothermal power generating capacity in the world. And enough renewable electricity sources consented to charge every car in New Zealand for the equivalent of just 30 cents a litre. The electrification of transport remains one of our largest green growth opportunities.

And there are other opportunities for innovation and investment. We can build on the hundreds of emissions reductions initiatives already underway. Companies like Waste Management are converting their car and truck fleets to electric alternatives. Countdown is reducing their waste to landfill and emissions, with innovative food waste and refrigeration schemes. Vector is trialling peer-to-peer technology that could one day see individual households’ trade energy. And smart meters have been rolled out across the country, allowing households to monitor and improve their energy use.

None of this is to ignore the challenge ahead of us, and the urgency of action. But too much of a focus on the likely challenges and costs, and what we stand to lose, results in paralysis. If you are negative, it is difficult to inspire action. As a country we need to engage in positive and consistent storytelling, which will normalise the transition and motivate action.

And it’s time to take the politics out of climate change. Businesses need long-term certainty, beyond the election cycle, to make the right investments and changes to their business operations. They need consensus across all political parties. We need a broad-based agreement on future action.

SBC believes a successful transition needs to be underpinned by cross-sector dialogue and collaboration between businesses, government, academia and the community. We think open dialogue and transparent analysis is critical to shaping a successful framework of solutions, policies, incentives and legislation.

That dialogue needs to take a holistic view of the changes ahead to ensure low-carbon solutions don’t have unintended consequences that undermine New Zealand’s long-term interests. We must consider all aspects of society as we make decisions; could there be a negative effect on the community, with job losses or further degradation of waterways or soils? And if so, how do we mitigate those effects? Treasury has framework for policy assessment called the ‘Living Standards Framework’, which helps analysts consider economic, environmental and social policy in an integrated way. Let’s do more of this.

We already know that emissions intensive sectors risk losing their competitiveness offshore, if they have to internalise the cost of carbon ahead of their competitors. We need to be thoughtful about how we manage this, which is why a national conversation is so important.

Climate Change can be an opportunity for New Zealand. Not only can we do our bit to reduce global emissions, we can be an innovation leader and better everyone’s lives. Let’s tap into that Kiwi psyche, which has already given us so many world firsts.


Abbie Reynolds | Executive Director | Sustainable Business Council

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