Coal to be phased out without ban

The Government insists there has been no work, plans or announcements on banning coal exploration, despite New Zealand signing up to a pact to phase coal out of power generation by 2030.

In November – shortly after the coalition government was formed – Climate Change Minister James Shaw headed to Germany where he told the COP23 conference that New Zealand intended to become a leader in the global fight against climate change.

While there, he signed New Zealand up to the international ‘‘Powering Past Coal’’ alliance, which is committed to phasing out the use of coal for electricity generation.

The alliance is led by Canada and the United Kingdom. Australia and some of the world’s biggest coal users – including China, India, the United States, Germany and Russia – didn’t sign.

Yesterday, Energy Minister Megan Woods said that no work had been done by the Government on banning coal.

‘‘We have made no announcements about ending coal, and we certainly haven’t done any work,’’ she told TV programme

‘‘What I’m saying is there are no plans to do that. We haven’t done anything.’’

National Party climate change spokesman Todd Muller said that Woods’ comments were ‘‘incredulous’’.

‘‘It’s absolutely incredulous is Q+A. what it is. For her to come out and say nothing’s been done when the other part of that Government is proactively, and with some fanfare, signing up to a commitment pre-Christmas suggests she doesn’t know what the other half is doing or she’s not being straight with New Zealand.’’

But Shaw said the alliance was not about banning coal exploration, it’s focus was on coal for electricity generation.

‘‘There’s a difference between mining for coal and stopping using it in your electricity generation as part of the national grid. That’s what we signed up to.’’

Genesis Energy has already pledged to stop using coal to generate electricity, except in exceptional circumstances, by 2025.

‘‘As part of the national grid, they have got the only coal-fired units in the country,’’ Shaw said.

That meant it would not take a lot of work for the Government to phase them out, he said.

At the COP23 summit, Shaw said: ‘‘We know that the future of our electricity system is in renewables, not coal, so I was delighted we could recognise that formally at this important international meeting.’’

Muller, who used to be a Fonterra executive and attended the COP23 conference with Shaw, said there was a complete disconnect between the Government’s policy and the ability of businesses to deliver on it.

Woods said yesterday that Fonterra wanted to be carbon neutral by 2050 and that the multinational dairy co-operative ‘‘going to move away from using coal’’.

Fonterra was always looking to transition away from coal to gas, Muller said.

However, to replace ‘‘capital assets of the size of Fonterra’s, you’re looking at needing 40 or 50-year lifespans’’, which the banning of oil and gas exploration permits was not going to allow for.

That meant the country was being set up for ‘‘failure’’, Muller added.

‘‘This is another example of a Government that has a high-ended ideal around where it would like to position the country but is not connecting with the businesses who will ultimately deliver against that promise.

‘‘Because it’s the change that happens at a business level that will largely deliver our ability to meet the targets we signed up to.’’

"We have made no announcements about ending coal, and we certainly haven’t done any work."

Energy Minister Megan Woods