Dec 6, 2024
Rewiring Aotearoa applauds Climate Change Commission's ambition, pushes for rapid electrification rather than overseas trees

New advice to the Government should be heeded, but more focus is needed on homes, small businesses and farms.

Rewiring Aotearoa commends the Climate Change Commission’s review of the 2050 targets and more ambitious emissions budgets and agrees with its assertion that the country will be able to meet our medium and long-term goals while growing the economy - as long as the Government prioritises and supports rapid electrification for real emissions reductions.

Rewiring Aotearoa CEO Mike Casey says it’s clear we cannot rely on increasingly expensive offshore offsets to meet our targets. 

“We believe more attention needs to be paid to households and the role they can play in the transition,” says Casey. “Approximately 25% of our gross emissions come from small fossil fuel machines in homes and businesses that could be replaced with electric equivalents today.” 

As outgoing Climate Change Commission chair Rod Carr summarised: “As a country, we can move further and faster to reduce the country’s gross emissions of greenhouse gases and still grow the economy, reduce energy costs, upgrade the security of our energy supply, and improve public health and our local environment."

“Our advice shows the recommended 2050 target is both realistic and affordable. Our modelling shows that existing technologies can help achieve more ambitious cost-effective emissions reductions in the short and medium term, and that research and innovation is vital to achieving low cost emissions reductions in the 2040s and beyond.”

Carr said in an interview on Q&A recently that “acceleration of decarbonisation through electrification” would be the most effective and affordable option for New Zealand to meet its targets.

Casey says it’s good to see a more ambitious budget for the fourth period (2036–2040) to ensure we reach our 2050 target, as well as revised budgets for the first three periods. 

“It’s good to see the Commission has updated battery costs and uptake and stood firm on the increased role and importance of renewables, batteries and demand response.”

Trade Minister Todd McClay said in an interview with RNZ that the government would not buy offshore carbon credits to meet its 2030 target

"The idea of sending billions overseas is not palatable to anybody in New Zealand,” he said. 

Casey also believes looking offshore is foolish when we could be picking the low-hanging fruit at home. 

“We need a strategy that goes after the easy emissions now. The priority should be in fossil fuel reductions that also bring down our cost of living. We collectively spend $40 million a day on fossil fuels. Climate action isn’t a cost, it’s in our economic best interest.”

Rewiring Aotearoa’s analysis for the Investing in Tomorrow report showed that New Zealand households could cumulatively save $95 billion by 2040 with an aggressive electrification campaign and also avoid millions of tonnes of carbon emissions per year by removing the need for expensive and mostly imported fossil fuels in exchange for more electricity generated in New Zealand. 

“If all the ‘dinner table decisions’ about how to heat the rooms and water, cook the food and get around are electric, it will make a significant dent in our emissions and help us reach our targets - and it will save New Zealanders billions every year by 2040."

While Rewiring Aotearoa doesn’t believe subsidies are required, Casey believes it’s in the Government’s interests to facilitate access to finance for electrification upgrades that are tied to property so that households can benefit from the technology.

“If we started counting ‘committed emissions’ as future reductions we could give the many billions we’d save to New Zealanders as loans instead of buying overseas trees.”

Casey says electrification would bring down the cost of living for every New Zealander, keep more money in the domestic economy, raise tax revenue, create jobs and improve our current account. 

Dr Carr said that “many of the investments made in low emissions technologies included in our advice would more than pay for themselves in the long term, through fuel savings and lower maintenance costs.”

“Change is coming – the question is how much the country chooses to steer this change. Doing nothing will likely lead to worse outcomes and higher costs, because delaying action will make the transition more expensive, and more difficult for some sectors and communities. It also risks Aotearoa New Zealand falling behind other countries.”

Casey agrees we need to move quickly and says the Government should heed the CCC’s advice. 

“This needs to be seen as a generational opportunity to invest, not as a cost to bear. The argument that it is too expensive to solve climate change doesn’t stack up anymore. It’s actually more expensive not to and more expensive still if we wait. This is a chance for New Zealand to nation-build through our households, small businesses and farms and become the world’s most electric economy. Whakahiko te ao / Let’s electrify everything!”

Read moreDownload the document here

More News