New Zealand

General energy system and GHG emissions

Information on the New Zealand Energy System is published annually in the Energy Data File by the Ministry of Economic Development. It shows energy flows for 2000. It starts on the left with primary energy carriers - oil gas, hydro, geothermal, other renewables and coal, then looks at the transformation to its final use - international transport, domestic transport, non energy use, industrial and agricultural, commercial and residential. In 2000 New Zealand the total consumer energy amounted to 453.3PJ. This came from oil (48.5%), electricity (26.9%), coal (7.7%), gas (7.3%) other renewables (6.6%, includes biogas, industrial waste and wood) and geothermal (3.0%).

The Second National Communication provides a mid-course report on New Zealand's progress towards meeting all its commitments under the UNFCC. The Third National Communication is also already available.

A report of the Climate Change Impacts on New Zealand is provided by the Ministry for the Environment. It examines the likely impacts of climate change and global warming based on expert reports and scientific studies.

A Summary of the New Zealand GHG emissions in the year 2000 provides data for all energy sector emissions of GHGs. It augments the energy sector emissions of CO₂ with CO₂ emissions from the industrial processes sector so as to give the total CO₂ emission estimates for New Zealand.

General description of bioenergy systems

Hydro and geothermal are the main Renewable energy sources in New Zealand. During the year ended March 2001 renewable energy is estimated to have contributed about 73% of electricity generation (hydro 64%, and geothermal 6%) and other renewables (biogas wastes, wood and wind). In 2000 woody biomass and animal products accounted for 29.2 PJ of energy consumption.
Most of the biomass used is from timber, pulp and paper industries. The bioenergy plants are used to power several sawmills, and also used to produce process heat for kiln drying of timber. Biomass is also used for residential space heating.

Land use, land use change, and forestry

New Zealand has a land mass of 27 million hectares. The major land use is pasture and arable land (51%0 followed by natural unproductive forest (24%). Plantation forests make up 6% of the land use.

The Climate Change Working Paper on Land Use and Forests (Sinks) Sector provides additional information on land use and forest (sinks) issues to support the consultation on climate change policy options.

Every year carbon stocks in the total forest estate and the 'Kyoto' forest estate, under a range of new planting scenarios, is calculated by Forest Research (see reference below). Information on carbon sinks in New Zealand are also available from the 2nd National Communication. The 3rd National Communication will be out shortly with updated figures.
Marshall, H.D, Wakelin, S.J., and Robertson, K. (2001): New Zealand Planted Forest Carbon Inventory (calculations revised as at April 2001). Contract report for the Ministry of Agriculture and Forestry and the Ministry for the Environment.

The size of the national plantation estate carbon reservoir increases under all scenarios modelled until about 2020. At this point a steady state is reached unless net afforestation continues beyond 1999. The total carbon stock estimated for the year ending 1990 is 113.2 Mt C, compared with 113.3 MtC previously reported.

Total carbon stock net of harvest removals by scenario

Scenario	New Planting Rate (from 2000)	Target rotation Age	Total Carbon Stock (Mt C)
Scenario	New Planting Rate (from 2000)	Target rotation Age	1990	2000	2010	2020
1. Base 2. Low 3. Medium 4. High	none -0 low - 20,000ha Medium - 40,000 ha high - 60,000 ha	28 28 28 28	113.2 113.2 113.2 113.2	169.3 169.3 169.3 169.3	215.6 218.5 222.6 226.5	223.9 239.9 264.2 287.2

Annual sequestration net of harvesting fluctuates due to the uneven age class structure and assumptions made about changes in the level of harvesting.

Carbon sequestration was estimated separately for stands established since 1990. The size of the carbon reservoir in these stands collectively increases under all scenarios modelled until harvesting begins in 2019. The onset of harvesting results in a decline in average stand age which can only be compensated for by the higher new planting rates.

Carbon Stock - since - 1990 new stands only

Scenario	New Planting Rate (from 2000)	Target rotation Age	Total Carbon Stock (Mt C)
Scenario	New Planting Rate (from 2000)	Target rotation Age	1990	2000	2010	2020
1. Base 2. Low 3. Medium 4. High	none -0 low - 20,000ha Medium - 40,000 ha high - 60,000 ha	28 28 28 28	00. 0.0 0.0 0.0	7.4 7.4 7.4 7.4	49.6 53.5 57.4 61.3	90.8 111.7 134.2 157.2

National policies and measures

The Energy Efficiency Conservation Authority has developed a draft energy efficiency and conservation strategy and the final document will be released in September. The Draft Strategy reinforces the New Zealand Government's commitment to energy efficiency and renewable energy. The release last year of both the Energy Policy Framework and Power Package, focused attention on sustainable economic, energy and environmental policies. This Strategy is a response to global climate change. Government intends ratifying the Kyoto Protocol on climate change next year. That means New Zealand taking responsibility by 2008-12 for any surplus in its greenhouse gas emissions over 1990 levels.

Energy Efficiency and Conservation Strategy
The overall energy outcomes that the Government is seeking are a progressive transition to renewable sources of energy through increasing energy efficiency and increasing the use of renewable energy. The strategy provides a broad outline of policies and measures to be used to achieve the overall goals.
The paper "Mechanisms for Increasing the Proportion of Electricity from Renewable Sources in New Zealand" provides information on the five options listed in the National Energy Efficiency and Conservation Strategy as possible mechanisms to achieve an increase in electricity from renewable sources.

Regional and local policies and measures

New Zealand is in the process of developing policy surrounding Climate Change and the Land Use, Land-Change and Forestry sector. It has released a series of Consultation Documents on domestic policy options for dealing with climate change. Of particular interest is the general overview document and the technical papers on land use, land-use change and forestry (sinks.doc) and projects.

Earlier consultation documents on domestic policy options discuss how best to respond to New Zealand's Kyoto Protocol commitments. The document sets out the proposed long-term policy package for the first commitment period (2008-2012) - a central element of which will be domestic emissions trading interfacing with an international system. The document also sets out three options for a central price signalling measure as well as complementary measures for addressing emissions in the period prior to 2008, and criteria for assessing these. There is also a document specifically addressing policy option for sinks.

There is also a information document out on Forest Sinks and the Kyoto Protocol (NZ Climate Change Programme)

The Climate Change Working Paper "The Use of Projects, Negotiated Greenhouse Agreements and Levies to Reduce Greenhouse Gas Emissions" provides additional information on projects, Negotiated Greenhouse Agreements and levies issues to support the consultation on climate change policy options. This is an officials' working paper and is not Government policy.

Implementation projects

The Bioenergy Association of New Zealand has been established to promote and coordinate the development of a bioenergy industry in New Zealand. The Association provides a central focus point for liaison with Government agencies, the dissemination of information amongst the industry and long-term positioning of bioenergy into New Zealand's energy system.
Members include anyone with a commercial interest in bioenergy - sawmillers, wood processors, energy researchers, consultants, manufacturers and investors. The Association has been formed with assistance from the following founding organisations:

Energy Efficiency and Conservation Authority (EECA)
Forest Research
Meridian Solutions
CHH Biogrid
East Harbour Management Services
Renewable Energy Corporation
Massey University
CRL Energy

Research programms

Forest Research has a Bioenergy research programme which focuses on:

Assessment of biomass resource availability
Fuel characterisation
Environmental assessment
Combustion/Gasification systems
Economic assessment

Recently the bioenergy Association of New Zealand (BANZ) was formed and it represents the bioenergy interests of commercial companies, research and development groups and individuals.

Forest Research has a Climate change mitigation research programme that focuses on climate change mitigation options in plantation forest, indigenous forest and harvested wood products. Some of the current projects include

Development of a carbon monitoring system (CMS) for indigenous forest, scrub, and soils in New Zealand in collaboration with Landcare Research.
Carbon stock estimates and sequestration by plantation forests in New Zealand
Development of tree component biomass functions for other plantation species
Development of a biologically based carbon forecasting model for plantation species in New Zealand.
An Assessment of the Significance to New Zealand of Article 3.4 Activities under the Kyoto Protocol
The Effect of Carbon Credits on the Economics of Forestry
Implications of carbon accounting methods for harvested wood products in New Zealand

Landcare Research focuses on understanding the processes which regulate the carbon balance in our own ecosystems. Programmes investigate and quantify the way physical and biological processes regulate the exchange of energy, water vapour, CO₂ and other greenhouse gases between land surfaces and atmosphere, the response of indigenous terrestrial ecosystems to global change, how changes in land use and climate affect soil CO₂ and nitrous oxide N₂O emissions, and how changes in soil-stored carbon affect the national carbon balance.