Deputy PM Michael Cullen has sent a pointed message to business lobby groups critical of the Govt’s Emissions Trading Scheme.

He’s made it clear the Govt will not back down on the scheme and has told critics they’re “failing in their moral and economic responsibilities” if they fail to support it.

Cullen has particularly taken a swipe at the “alarmist” Castalia report commissioned by the Greenhouse Policy Coalition, which warns of a serious impact on NZ’s economy from emissions trading in its proposed form.

He notes there is now a broad consensus supporting the Emissions Trading Scheme, adding most businesses understand the scheme will “necessarily change the relative competitiveness of firms,” both domestically and internationally.

The Govt believes this will transform NZ’s economy into a more sustainable one, better prepared to compete in a global economy, which increasingly places a premium on sustainable practice. Cullen argues NZ’s long-term economic competitiveness hinges on the country’s clean and green national branding.

Thus, the Govt intends to pursue sustainability in every way possible and “we must be seen internationally to be pursuing sustainability in every way.”

He adds the days when major emitters of greenhouse gases can deny the existence of climate change “and have half of Parliament stand behind them” are gone.

Cullen counters the Castalia report by noting research by Infometrics, showing the impact of the Emissions Trading Scheme on GDP growth will be very small during the first Kyoto commitment period.

He adds, “The cost of doing nothing cannot be ignored, but our critics still cannot seem to grasp that basic fact.” Cullen notes many NZ businesses already realise their future success hinges on being seen as sustainable and becoming world-leaders in sustainable practice.

For example, Air NZ is trialling bio-fuels; the wine industry wants all its businesses in accredited sustainability schemes by 2012; sustainability is at the core of the new tourism industry strategy; the BNZ has announced plans to be carbon neutral by 2010, and Westpac has launched a Green Home Loans scheme to help make houses more energy efficient.

Greenhouse Policy Coalition Executive Director Catherine Beard has hit back, describing Cullen’s attack as a political tactic to shut down debate and “avoid having to address the serious issues raised on closer examination of the scheme.”

Beard believes most business groups agree NZ has a moral and economic responsibility to develop an emissions trading scheme which fulfils our international responsibilities, but does so in a way that doesn’t drive highly-efficient industries offshore.

Beard adds if the Castalia report is “alarmist” about the negative impact the Emissions Trading Scheme on NZ’s economy, it was equally “alarmist” when it was the first economic consultancy to predict NZ would have a big Kyoto deficit due to deforestation and economic growth.

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