In a world-leading move, the 34 core public service departments will begin immediate work to achieve carbon neutrality as part of the Labour-led government's push towards sustainability, State Services Minister Annette King and Climate Change Minister David Parker announced today.

All core public service departments will start reducing emissions immediately and a lead group of six agencies -- the Ministry for the Environment, Ministry of Health, Ministry of Economic Development, Inland Revenue, Department of Conservation and the Treasury - will have carbon neutral plans in place by early 2008.

David Parker said core government departments would achieve carbon neutrality by taking practical action without compromising the quality of service provision for the public.

"Achieving carbon neutrality from 2012 in the whole of the core public service will demonstrate nationally and internationally New Zealand's commitment to pulling its weight on climate change and creating a sustainable nation," David Parker said.

A number of central government agencies are already leading the way, cutting emissions by focusing energy efficiency measures, transport and fuel economy and waste minimisation. Examples include:

• The Ministry for the Environment uses 60 per cent less energy in its buildings compared to similar buildings in Wellington, delivering savings of around $140,000 per year in energy costs.
• ACC, IRD and MSD have all invested in vehicles with greater fuel efficiency. More than 93 per cent of their combined fleet are less than 2000cc.

Annette King said agencies would take a phased approach in reaching the carbon neutral goal, but it would be mandatory for all 34 central government agencies to be on a path to carbon neutrality by 2012.

"Agencies will be expected to reduce their emissions as far as possible before offsetting the residual emissions to minimise the environmental impact of government business and the reliance on offsetting projects," Annette King said.

"Because it will not be possible to reduce emissions to zero in a practical and cost effective manner, remaining emissions will be offset to achieve carbon neutrality, with New Zealand-based forestry related activities being one way to achieve this."

Full details will be announced later in the year, and in Budget 2007.

Q&A -- Carbon neutrality in the public sector

Why is the government doing this?
The core government agencies, especially the six agencies in the lead group, are leading by example in becoming carbon neutral. In doing so it will help set New Zealand on a long term path to lower emissions and provide a practical demonstration of the steps that can be taken to reduce and offset emissions. The programme has been divided into stages so that government can learn by doing and apply those lessons.

What is 'carbon neutrality'?
People or organisations can claim to be carbon neutral when they measure and reduce the greenhouse gas emissions associated with their activities (which come about mostly when fossil fuels are burnt to generate electricity or as transport fuel), and then undertake 'offset' projects to remove an equivalent amount of carbon dioxide from the atmosphere or prevent it being released. This offsetting process is sometimes called buying carbon credits.

How are we applying this definition in the public service?
We have looked at domestic and international examples to choose a credible definition (there is no set international definition of what should be counted for carbon neutrality). The programme counts emissions connected with energy use, domestic and international work-related travel, and waste. Other areas where government activities indirectly result in emissions include staff commuting and the 'embodied energy' in buildings and consumables. These are important but are not fully within government's control, so they are being targeted through the new sustainable government procurement policies and the Govt3 programme.

Why not aim for carbon neutrality before 2012?
Within the lead group, agencies will be expected to offset all emissions from now on and have processes to do that offsetting in place within a year. Because one of the options is for forestry-based offsets projects, and trees take time to grow and absorb carbon from the atmosphere, the lead agencies won't be able to claim to be carbon neutral immediately, but will be able to do so by 2012 at the latest.

Other agencies will also start to measure and reduce their emissions immediately, but will only complete the process by offsetting unavoidable emissions when the most environmentally appropriate and cost-effective ways of offsetting within New Zealand have been identified. This is likely to happen progressively once the lead group of agencies has established a good process.

What are the benefits of investing in carbon neutrality?
Climate change is a real and important issue, and operating in a low carbon way will become part of business as usual for government. By investing in reducing emissions through energy efficiency improvements to cut energy and fuel use and waste, the core agencies will save money over the long term. Investing in forestry related projects to produce carbon credits and deliver other economic and environmental benefits will also leave the government, and therefore taxpayers, better off in the long term.

Why not expand beyond the core agencies?
The government intends to encourage Crown entities, schools, DHBs, etc. to participate in emissions reduction measures, and the Govt3 programme will expand in the future to support those efforts. It is not planned at this stage to make it compulsory for schools or hospitals to become carbon neutral.

Is the focus on reducing emissions or offsetting them?
Emissions reductions are the most important element of this initiative as they will deliver long term savings of emissions, energy and money compared to business as usual.

How will emissions be reduced?
Investments will be made in cutting use of electricity (purchase of energy efficient appliances, energy efficient behaviours by staff, and investment in energy efficient building features such as sensor-controlled lights and modern air-conditioning systems), reductions in waste sent to landfill through greater recycling, and changes to transport behaviour (through purchase of more efficient vehicles and use of technology such as video-conferencing to cut down on flights).

What are the targets for emissions reductions?
Blanket emissions reductions targets for agencies have not been set at this stage, as many agencies have already made considerable efforts to reduce their emissions. The focus will instead be on best practice across the public sector. The New Zealand Energy Efficiency and Conservation Strategy, which is now under consultation, will include some energy efficiency targets for government agencies which will complement this programme.

Why not purchase carbon credits overseas instead of developing new offset programmes in New Zealand?
The government prefers to pursue forestry-related offset projects in New Zealand for the public service because of the additional environmental, social and economic co-benefits they offer (for example, encouraging native bush regeneration can help to lessen the impact of flooding and provide better habitat for native birds). Other New Zealand-based projects may form part of the eventual portfolio of offsets.

Will all offsets have to be funded from departmental baselines?
No. Funds will be budgeted for offset projects.

What sort of forestry activity is being considered, and where?
Options are still being investigated but the government's initial preference is to utilise Crown land. The planting of natives and exotics are being actively considered, as is pest control of goats and possums, to preserve biomass in forest areas. It is likely that a range of offset options will be chosen, to ensure land is used appropriately. While it is expected that most of the projects chosen will lessen our Kyoto liabilities, other projects may be chosen if they offer good carbon absorption and environmental benefits.

How does this relate to other government climate change initiatives?
The government is currently consulting on climate change policy options for the agriculture and forestry sectors ("Sustainable Land Management and Climate Change: Options for a Plan of Action"). The focus of this consultation is land that is in private ownership. While the forestry offset component of the carbon neutrality initiative is still being investigated, the government's initial preference is to utilise Crown land. The carbon neutrality project is therefore complementary to the "Sustainable Land Management and Climate Change " discussion.

There are also connections with the decision on preferred policy measures in New Zealand after 2012, that could, for example, include a role for price-based measures. (Current discussion paper: Measures to Reduce Greenhouse Gas Emissions in New Zealand Post-2012). While the carbon neutrality project certainly adds a new dimension to the post 2012 discussion, we think it can easily be integrated to a price-based measures framework, should this be the preferred policy setting.