Climate Change Services

The world is experiencing a rise in temperature, increasing sea levels, more frequent extreme weather events and a change in rainfall patterns. These climatic changes will potentially impact native ecosystems, industries, infrastructure, health, biosecurity and our economy.

The Kyoto Protocol - the international agreement to address global warming and to delay the impact of climate change - came into force on 16 February 2005.

On 20 September 2007, the Government released its much anticipated framework for an Emissions Trading Scheme (ETS) and measures to encourage forestry and more sustainable land use. Emission Critical provides an overview of the Government’s announcements and proposed solutions, describes the ETS, how it will function, who will be captured under the proposals, and the implications for businesses.

Background

New Zealand ratified the Kyoto Protocol in 2002 committing New Zealand to a legally binding greenhouse gas target between 2008 and 2012 (the First Commitment Period). New Zealand’s target is to maintain its average annual emissions over this period at 1990 levels. However, emissions data released by the Government yesterday shows New Zealand’s expected deficit position for the First Commitment Period is projected to rise from 41.2Mt to 45.5Mt. The ETS and the forestry and land use proposals announced by the Government are designed to assist the country to reduce its deficit during the First Commitment Period to 25Mt and to establish a downward trend into the future. The Government will continue to accept some Kyoto liability during the First Commitment Period.

How PwC can help

The assistance we can provide encompasses a range of services – from greenhouse gas data management, reporting and verification, financial modelling, valuations, benchmarking, to due diligence, accounting for carbon credits, carbon measurement, and tax advice.

Our Climate Change Team will be happy to talk to you about the issues facing your business.