Future generations will thank us for the NZ Steel emissions deal
Cristiano Marantes is chief executive of Ara Ake, New Zealands National Future Energy Centre. OPINION: Future generations will thank us for the Governments decision to spend $140 million co-funding NZ Steels Glenbrook $300 million decarbonisation initiative . To borrow the Maori proverb: E hara taku toa i te toa takitahi, engari he toa takimano, takitini. Success is not the work of one, but the work of many. That has never resonated more than on the topic of climate change. Whats not well understood is that the funding for this initiative will come from the Emissions Trading Scheme, which means it will be financed by the biggest polluters themselves. READ MORE: * The real deal on NZ Steel: Climate change win or corporate welfare? * Corporate welfare or co-investment? Role of state back in play for election * Government announces massive emissions-cutting deal with NZ Steel, Contact Energy These polluters have previously contributed to a separate industry decarbonisation fund called the GIDI Fund, which specifically aims to reduce emissions from industries that are complex to decarbonise. Steel production is one example. Therefore, in this context, the funding can be seen as polluters paying for the decarbonisation of other polluters, not the taxpayers. It is understandable that there have been opposing viewpoints and passionate debates surrounding this co-funding support, but climate change is an existential issue. Urgency, pragmatism, and partnership are essential in addressing this global challenge effectively. Above all, addressing climate change demands bold and decisive actions. While financial considerations are important, it is crucial to recognise that there is a limited and rapidly closing window of opportunity to ensure a liveable and sustainable future for us all. The choices and actions implemented in this decade will have impacts now and for thousands of years. This was spelled out very clearly by the Intergovernmental Panel on Climate Change (IPCC) this year. This collaboration between business and government will address 1% of the countrys total greenhouse gas emissions, which has been likened to taking 300,000 petrol cars off our roads. This will be the biggest emissions reduction initiative in New Zealand to date. But the pace and scale of what has been done so far in Aotearoa and globally is woefully insufficient to tackle climate change. There are significant gaps, or even chasms, between the expected emissions reductions and the current level of action required to meet climate goals. Enhanced access to decarbonising technology and finance is more essential than ever before, so we need to see more collaborative projects like this one. This project would not have been possible without a joined-up effort. The reality is that NZ Steel was not willing to do this without government support, and thats rubbed some people up the wrong way. I see the tension, but what would the alternative be? If the electric arc furnace was not built, NZ Steel would have to continue using coal furnaces for the foreseeable future. This is undesirable and unsustainable for future generations. Theres no doubt in my mind that for humanity to have a chance to limit the impacts of climate change, we need to collaborate much, much more. But meaningful collaboration must drive action. This is what I call collabor-action. Id put the partnership between NZ Steel and the government in this camp, rather than a corporate handout . We have many similar examples from the work were doing at Ara Ake too. One example is our recent Electricity Distribution Business (EDB) decarbonisation challenge, which last year brought together eight EDBs from across the motu to agree on the big challenges they face as a key enabler of energy decarbonisation. By bringing together these disparate parties, we were able to undertake a global search for innovative and market-ready solutions to address their big challenges and deliver real-world pilots that are in the market today. From power beaming to energy sharing. From this work, I have learnt a few things. Firstly, building collaborative opportunities takes time and energy, but they have the greatest opportunity to shift the dial. We see this clearly with NZ Steel 1 per cent of all emissions. Secondly, bringing multiple sector participants together demonstrates a depth of market that we know attracts technology to Aotearoa. This is relevant across all sectors. Finally, we have more in common than the differences that separate us. I firmly believe that a shared aspiration unites us all to forge a future that is sustainable and enduring. Over the course of time, Aotearoa New Zealand has consistently demonstrated its global leadership in matters of significance. Today, it falls upon us to ensure that future generations will also look back upon us with gratitude. By fostering strong collabor-action, we have the potential to forge a sustainable future that will benefit the generations to come.