There will be plenty of big issues this year, not least how and whether it will be possible to get the international negotiations on climate change back on track. Climate Change Negotiations Minister Tim Groser says at this stage he has “no idea” how the world will move forward from the disappointments of the Copenhagen climate change summit, but he suspects the current negotiating system will need either a radical shake-up or replacement.

If last year was dominated by climate change and electricity reform, this year’s domestic energy and environment agenda looks set to be dominated by water policy reform and the Govt’s enthusiasm for minerals exploitation. The water issues are huge, especially as a growing number of regions approach allocation limits for water. The questions: who owns water? Who has or should have rights to it? Should those rights be tradeable, and if so, how? What deal will Maori want to ease the path?

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And while the Govt knows productive farming is the lifeblood of NZ’s export competitiveness, the limits of said productivity under NZ’s traditional pastoral farming systems are arguably being tested by industrial farming techniques such as those proposed for the Mackenzie Basin. The deep national unease about the Mackenzie proposals is unusual in that on this occasion the sentiment is widely shared in both urban and rural communities, encompassing multi-nationals like Fonterra and eco-lobbyists alike. The Land and Water Forum, the consensus-seeking body appointed last year by Environment Minister Nick Smith, is reportedly making good progress under the diplomatic leadership of former Transport Secretary and trade negotiator Alistair Bisley. But there are signs already its June reportback deadline is slipping.

Meanwhile, electricity generators will be looking to move on retail prices this year. Most have been holding back on increases, absorbing some or all of the increases they’re seeing from Transpower and local networks, and under pressure to improve commercial returns. The SOEs will have their hands very full with implementation of Energy Minister Gerry Brownlee’s reforms, announced just before Christmas, and will be positioning to take advantage of the likelihood a re-elected National-led Govt will entertain at least partial privatisations after the 2011 election, especially now the Capital Markets Development Taskforce has reframed the issue in terms of lost opportunity for NZ investors.

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