Big business split on plan for carbon transparency
Big business is divided over whether the public should be told about the emissions of individual companies.
The Government is working to reform the Emissions Trading Scheme (ETS) to provide a progressively stronger financial cost on businesses for emitting each tonne of carbon dioxide.
But the Climate Change Response (Emissions Trading Reform) Amendment Bill, which is part of the Government’s bid to decarbonise the economy, would see the publication of emissions data of companies captured by the ETS.
While some large companies such as Z Energy, Countdown and Air New Zealand all support the data being released, many companies and their industry associations do not, fearing the reason for publication is ‘‘naming and shaming’’.
‘‘We do not consider there are sound public policy reasons for publishing individual emissions data reported by NZ ETS participants,’’ the Petroleum Exploration and Production Association of New Zealand said.
The Government was already getting the data it needed to ensure the ETS functioned efficiently, the oil industry body said.
‘‘The desire to publicise details about individual entities therefore seems gratuitous and appears to be driven by a desire to ‘name and shame’ emitters,’’ it said.
Paul Goldstone from the Meat Industry Association, which represents a sector employing 25,000 people and is responsible for 8.8 per cent of New Zealand’s total exports, said ETS data for individual companies was commercially sensitive, and should be kept private.
The association, which includes Affco and Silver Fern Farms among its members, believed the likely format for releasing the data was arbitrary, flawed and misleading.
‘‘If there is to be emissions reporting then it must be accurate and scientifically credible, and shortlived methane emissions should be reported separately from CO and other long-lived gases,’’ it said.2
The Dairy Companies Association (DCA), which represents dairy processors, was concerned the publishing of ETS data for individual companies had ‘‘a high risk of data being misinterpreted or result in unintended disclosure of commercially sensitive information’’.
It would prefer companies to voluntarily disclose emissions, and said that if data were to be released it should happen on a specific date each year, with companies given prior notice, which was a call that all businesses submitting views on the proposed ETS reforms backed.
The DCA predicted a possible bureaucratic nightmare.
‘‘If agricultural emissions enter the ETS at a farm level of point of obligation, this requirement would see the EPA [Environmental Protection Authority] publishing the names and emissions data for all 12,000 dairy farmers. We see this as being an additional bureaucratic task which would not materially advance public understanding of agricultural emissions.’’
It could also hinder ‘‘engagement’’ with farmers, the DCA said.
Refining NZ, which operates New Zealand’s only oil refinery and is listed on the New Zealand stock exchange, was one of many businesses to call for a period of notice before data was released so that businesses could prepare, including by notifying investors.
Z Energy, Countdown and Air New Zealand are all members of the Climate Leaders Coalition, which includes Stuff, and all already publish emissions data.
Many companies with shares listed on the NZX and the Australian sharemarket already publish emissions data and sustainability reports.
While all businesses said they supported the bill, submissions to Parliament included dissenting voices, including from people who were concerned New Zealand would handicap its own economy.
They feared the possibility of economic activity closing down here only to be replaced with economic activity overseas, which would not result in global emissions falling and could result in even higher emissions as overseas companies may be less efficient than those in this country.
‘‘If there is to be emissions reporting then it must be accurate and scientifically credible.’’Meat Industry Association statement