Address to the 2nd International Conference on Sustainability Engineering and Science.
9am, 21 February 2007, University of Auckland

Good morning and welcome to you all. I am pleased to be here today to talk to you about sustainability, and how we must prepare for and adapt to climate change impacts on New Zealand and globally.

It is a pleasure to have local and international visitors in our audience who will share their research and technical expertise with us. Good policy formulation relies on good science and the government acknowledges the role played by scientists, engineers and businesses in shaping our strategies for a sustainable New Zealand - it is an invaluable partnership.

I would like to begin with a small discussion on sustainability, before moving on to talk about one very important aspect of that - climate change.

Sustainability is a goal that can be applied in many areas of the work we do as a government. In an environmental sense, we have many programmes already underway to preserve and conserve our precious resources for future generations.

• The Sustainable Water Programme of Action

• The Draft New Zealand Energy Strategy, with its focus on renewable energy and reduced greenhouse gas emissions
• Energy Efficiency and Conservation Strategy
• Proposals for carbon pricing, pre and post-2012
• The Clean Air Programme
• The Biodiversity Strategy
• And a range of transport related initiatives.

Sustainability is not just about the environment. This government see it as an economic, social and cultural goal. Our Prime Minister, Helen Clark, outlined this last week. She said:

• Our challenge is to build a sustainable economy based on innovation and quality in a world where high volume, low quality goods and services will always undercut us on price.

• Our challenge is to sustain family and community living standards in our open, competitive economy.
• Our challenge is to sustain our unique culture, values, and national identity in a world of globalised media and culture.

What happens when we live unsustainably? Climate change is an example of this. Humans are producing more greenhouse gases than the earth's atmosphere can absorb - and we are already seeing signs of the predicted results - increasing temperatures, rising sea levels and more extreme weather events like floods and droughts.

The recent Stern Review and the latest report from the Intergovernmental Panel on Climate Change leaves little room for doubt that the world must take urgent action, and that action will be much less costly than the consequences of taking no action. Climate change has moved beyond being just an environmental debate, to being an ethical and economic issue that requires a long-term vision, enduring policies and responsible actions.
This government has responded to this urgency.
Late last year we released a set of policies dealing with energy and climate change.
The New Zealand Energy Strategy focuses on a renewable energy future, and says that all new generation should be renewable, except to the extent needed to maintain security of supply.
It also says that investment should occur in energy efficiency measures where this is cheaper than the long-term costs of building extra generation capacity, including environmental costs.
We also released proposals to introduce a price on carbon.
The Prime Minister built on this with announcements last week, about priorities for this year. They include:

• Moving the Public Service towards carbon neutrality

• Developing a single procurement policy for government requiring sustainably produced goods and services to be used whenever possible
• Supporting households to become more sustainable
• Supporting business partnerships for sustainability
• And improving waste management

This government is determined to provide leadership for New Zealand business in adapting to and responding to impacts of climate change.

The initiatives announced last week will reduce New Zealand’s greenhouse gas emissions and boost business opportunities for businesses that provide sustainable goods and services.

Starting April 2008, oil companies will start having to sell biofuels along with the petrol and diesel they sell. The proportion will gradually increase, reaching 3.4 percent of total fuel sold by 2012. This requirement will reduce greenhouse gas emissions from transport by 3.4 percent - equivalent to more than 100,000 carbon neutral cars and trucks. It will also ensure our transport infrastructure transitions to a lower carbon future. This obligation provides new business opportunities for the agricultural sector as most of the biofuels are expected to be made in New Zealand.

The government sector is a significant purchaser of services within the economy and intends to use its purchasing power to help drive innovation, cleaner production and improved cost effectiveness over the whole lifecycle of goods and services.

Already in underway is the Govt3 Program - an initiative which accelerates adoption of sustainable building practices. Ministry for the Environment have an exhibition at this conference and a more detailed presentation this program will be given during this conference.

These are initiatives that will grow the market for environmentally friendly products including paper, cleaners, plastics and fuel efficient vehicles. Sustainable public purchasing will provide significant market opportunities, encourage technological innovation and help to create new export opportunities for New Zealand companies.

The government intends to lead by example by moving the public service towards carbon neutrality. This year the first group of six departments will commit to reaching carbon neutrality by 2012. By early next year, the Ministries for the Environment, Health, and Economic Development, the Departments of Inland Revenue and Conservation, and Treasury will have reduced their carbon footprint significantly. Their objective will be to reduce their department’s emissions, but at the point that it is not feasible to reduce further, they will offset them; for example, by supporting tree planting on Crown land, which will also contribute to our sustainable land management policies.

Some climate change is inevitable, as a result of greenhouse gases already in the atmosphere. Therefore we must be ready to adapt to these new conditions.

At a local government level, a number of local authorities have developed initiatives to improve their long term planning for vulnerable areas, such as storm water management, flood control and reducing the risk of coastal erosion. Examples include storm water projects developed by Kapiti Coast District Council and North Shore City Council, and tidal inundation work undertaken by Rodney District and Hawke’s Bay Regional councils.
In other areas, agencies with responsibilities for infrastructure are beginning to plan how to minimise the costs to infrastructure. Some of the future costs of climate change can be avoided or reduced by sensible planning now to protect roads, sewerage, electricity transmission, water and telecommunications.
We are committed to helping industries assess and manage the risks of climate change in their planning processes. Guidance material, technical reports and case studies have been developed to help industries assess and manage the risks of climate change in their planning processes. The number of businesses holding, or in the process of qualifying for, Environmental Choice certification has doubled in 2006 and more than 700 products are accredited to use this eco-label. Partnerships with business will continue to be a core feature of government strategy in this area.

Business has a big contribution to make towards improving New Zealand’s overall sustainability performance. Many businesses are already involved and many more are interested.

The new government initiatives recognise the value of business involvement through research, science and technological innovation. Scientists and engineers have an important role to play in ensuring our world lives sustainably and need to be thinking about climate change in new designs. Science and innovation enhance policy formulation and decision-making, by providing cost-effective and means for mitigation, adaptation and reducing uncertainty around climate change impacts.

As such, the government is committed to making sustainability part of the design and innovation process. Last year the government’s support of the Designers Institute of New Zealand’s decision last year to introduce a Sustainable Product design category into its annual Best Design Awards is an example of that commitment.

The partnership with the Institution of Professional Engineers is a similar example of the government’s serious commitment to working with business and industry in developing strategies to achieve sustainability and adaptation for climate change.

This year the government will work with leading business networks, like the Business council for Sustainable Development and the Sustainable Business Network, to promote awareness by companies of what they can do to improve their sustainability and their profitability.

We are already starting to see sustainable practices being fully embraced in both public and private sector. I congratulate Meridian Energy, IAG NZ and Formway Furniture for taking a lead in sustainable business practices in their respective industry.

Meridian Energy’s new office accommodation on the Wellington waterfront, currently under construction, will set new best practice environmental performance standards particularly for minimising the use of energy and water in commercial office buildings. The approach Meridian Energy has taken to the planning and design of this building is a great example of what sustainability is all about, particularly the collaboration with others and a willingness to share what they’ve learnt.

Sustainability also featured strongly in the design of IAG’s new Christchurch building. IAG has not only worked on strategies for their own sustainability, but on encouraging both the insurance industry and community to act responsibly on climate change matters through sponsoring research and awareness programmes. The likely impact of climate change on insurers is potentially huge. Changing weather patterns have already had huge implications to the insurance industry. Weather related disasters represent 19 of the top 20 insurance losses in New Zealand since 1968 - a trend expected to continue. Over the last 10 years, the average cost of floods in New Zealand has been about a $120 million dollars per annum, and the total cost of the February 2004 floods is estimated to be well over $300 million. So, if the incidence of such events increase as expected, we could be approaching costs of a billion dollars per annum. These costs could be a reality if we do nothing to prepare ourselves.

In the furniture industry, Formway Furniture represents an important example of how innovation, strategic planning and phased practical implementation are delivering sustainable design solutions in the office furniture sector. Through the smarter and more responsible specification of all material types, Formway is striving to cut greenhouse gas emissions and reduce solid waste, as well as minimising and where possible, eliminating, the presence of potentially hazardous substances in products and processes.
I applaud these actions by industry. Such initiatives will make the difference in preparing New Zealand for the effects of inevitable climate change. I encourage other sectors to follow their example.
Thank you for your invitation to speak at this conference today. I look forward to hearing of your discussions and I wish you every success in rising to the challenge of climate change and sustainability.