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Viewing cable 06WELLINGTON670, NEW ZEALAND RE-THINKS CLIMATE CHANGE

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Reference ID Created Released Classification Origin
06WELLINGTON670 2006-08-28 03:33 2011-04-28 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Wellington
VZCZCXYZ0000
RR RUEHWEB

DE RUEHWL #0670/01 2400333
ZNR UUUUU ZZH
R 280333Z AUG 06
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 3194
INFO RUEHBY/AMEMBASSY CANBERRA 4519
RHHJJAA/JICPAC HONOLULU HI
RUCPDOC/USDOC WASHDC 0071
RHHMUNA/USCINCPAC HONOLULU HI
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
UNCLAS WELLINGTON 000670 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/ANP AND OES/EGC 
COMMERCE FOR 4530/ITA/MAC/AP/OSAO/ABENAISSA 
PACOM FOR JO1E/J2/J233/J5/SJFHQ 
 
E.O. 12958: N/A 
TAGS: SENV ENRG NZ XV
SUBJECT: NEW ZEALAND RE-THINKS CLIMATE CHANGE 
 
REF: A. 05 WELLINGTON 603 
     B. 05 WELLINGTON 991 
 
1. (SBU) Summary: While many Kiwis view the United States and 
Australia as the big bad wolves of global climate change, NZ 
officials are quietly turning the country's policies away 
from the Kyoto Agreement and towards longer-term energy and 
climate change strategies. The officials are motivated by the 
rising costs of the country's Kyoto obligations, concern 
about the potential negative impact of those obligations on 
the New Zealand economy, and the recognition that NZ's 
changing energy needs must be managed in a way that does not 
clash with its goal of reducing carbon emissions.  In 
practice, this means GNZ wants to build on its bilateral 
climate change partnerships with key non-Kyoto partners, 
Australia and the United States.  The Government's new focus 
away from Kyoto will likely be evident when Adrian Macey, 
GNZ's new Ambassador for Climate Change, participates in 
August 29-30 US-NZ bilateral climate change talks in 
Washington.  End Summary. 
 
New Zealand Climate Change Policy: A House of Straw 
--------------------------------------------- ------ 
2. (U) In June 2005, the NZ government announced for the 
first time that New Zealand's green houses gases would likely 
exceed its targets under the Kyoto Protocol, costing GNZ an 
estimated NZD 307 million (USD 195 million) in carbon credit 
purchases (Ref A). The admission was doubly embarrassing 
because the Government claimed when it signed onto Kyoto that 
New Zealand would be a net seller of carbon credits.  The 
Government's admissions led to months of opposition party and 
business criticism of the Government's commitment to Kyoto in 
light of the costs of compliance and failure of countries 
such as China and the U.S. to sign the agreement.  As a 
result of this pressure, GNZ was forced in December 2005 to 
scrap its only policy instrument to implement Kyoto -- a 
proposed tax on carbon content of petrol and diesel fuel. 
Without the tax's anticipated inhibiting effect on carbon 
consumption, New Zealand calculated its estimated deficit 
position would be 64 million tons of carbon dioxide 
equivalent, at a cost of NZD 606 million (USD 385 million) 
(Ref B). Elimination of the tax proposal also left the 
Government few options to comply with Kyoto by discouraging 
consumption. 
 
3. (U) Faced with a reduced menu of options, GNZ ordered a 
review of its domestic climate change policy.  Last month, 
Minister for Climate Change David Parker released a Cabinet 
report based on the results of the Government's review. 
Citing challenges to New Zealand's future energy needs, the 
report for the first time links the government's long-term 
climate change and energy policies, while de-emphasizing New 
Zealand's more immediate Kyoto Protocol obligations. 
 
4. (U) Also last month, Parker said that thanks to rising oil 
prices, New Zealand's projected carbon deficit for the first 
Kyoto commitment period (2008-12) has been reduced from last 
year's estimates.  However it is still a sizable 41.2 million 
tons of carbon dioxide equivalent (NZD 390 million; USD 248 
million based on a carbon price of USD 6 per ton). 
 
5. (SBU) As it quietly backs away from its public emphasis on 
Kyoto, GNZ is simultaneously developing New Zealand's Energy 
Strategy (NZES) and a National Energy Efficiency and 
Conservation Strategy (NEECS).  GNZ announced that a draft of 
the NZES would be released in September; however, this has 
reportedly slipped until October (or later).  GNZ still aims 
to complete the three strategy documents in advance of the 
United Nations Climate Change Conference in Nairobi in 
November. 
 
Asia Pacific Partnership: "Let me in, Let me in" 
--------------------------------------------- --- 
6. (SBU) According to Australian High Commission contacts, 
New Zealand has repeatedly asked Australia about NZ's joining 
the Asia-Pacific Partnership on Clean Development and 
Climate.  Australian officials have reportedly told GNZ that 
the Partnership is at an early stage and that Partners wish 
to consolidate before considering expansion.  Canberra has 
also said that despite GNZ requests climate change is not 
going to be on the agenda at annual bilateral Australia-New 
Zealand consultations. 
 
7. (SBU) Left outside the Asia-Pacific Partnership club, New 
Zealand is building on its existing, sizable climate change 
cooperation with Australia and the United States.  In doing 
so, GNZ is also hoping that by increasing its bilateral work 
with us, it can show the Kiwi public that New Zealand is 
exerting a global influence on climate change even as it 
de-emphasizes the importance of adherence to Kyoto.  Among 
other things, Australia's Minister for the Environment Ian 
Campbell recently approved grant funding of AUS$224,000 
(US$170,000) for GOA participation in two trilateral projects 
(United States, Australia and New Zealand) to assist the 
Pacific region in adapting to the possible impact of climate 
change.  One project is designed to enhance the quality of 
climate data generated in the Pacific.  The second will 
develop a high-quality cyclone database for the South Pacific 
and Indian Oceans. 
 
Foreign Minister appoints Climate Change Ambassador 
--------------------------------------------- ------ 
8. (SBU) In a further sign of moving away from Kyoto-centered 
policies, at the end of July, Foreign Minister Winston Peters 
announced the appointment of diplomat Adrian Macey to the new 
position of Climate Change Ambassador.  Macey, most recently 
NZ's Ambassador to France and the OECD, will be responsible 
for handling New Zealand's international negotiations on 
climate change, and for increasing cooperation with key 
bilateral partners and international stakeholders. 
Ambassador Macey will lead the New Zealand delegation to 
Washington August 29 to 30, as part of the fourth round of 
partnership talks of the U.S.-New Zealand Bilateral Climate 
Change Partnership, initiated in 2002. 
We have not been able to meet with Macey since his 
appointment just a few weeks ago.  But we predict his 
approach to the meetings will be designed to help New Zealand 
meet its goals of enhancing its bilateral climate change 
relationship with the U.S. and developing ties with the 
Asia-Pacific Partnership. 
McCormick