Climate Change Leadership Forum report number: 9

Business Opportunities Cluster Group meeting

Briefing for the Climate Change Leadership Forum

Prepared by the Business Opportunities Cluster
Date: 24 June 2008

Minutes

Climate Change Leadership Forum
Business Opportunities Cluster
20 June 2008

  1. Introduction
  2. Role of the CCLF and cluster group
  3. Phase 1 : Educate the market
  4. Phase 2 : Innovation

1. Introduction

The aim of the cluster is to recognise the climate change business opportunities and to identify/address/recommend solutions to any barriers to realising these opportunities.  The starting point is within a framework of reducing emissions, reducing economic risks and identifying “incentives” and opportunities to create the right behaviours for New Zealand businesses to move forward in a carbon constrained environment.

At the last meeting it was agreed that the future direction of the cluster should focus on four key areas:

  • The supply side,
  • Legislative barriers/ issues,
  • Pure opportunities,
  • CDM.

To streamline the work in relation to these areas, it was agreed that they could be further defined into two key work streams:

  1. Supply side: including market/commercial opportunities to create carbon savings, carbon development funds, CDM, voluntary market carbon creation, and identifying barriers to supply.
  2. Demand side: including new business/revenue generation, cost reduction, protecting value, environmental integrity and community opportunities.

After discussion, it was agreed that the cluster group would work together focusing initially on the demand side issues and then, later, in more detail on supply side issues rather than attempt to break into separate workstreams.  In addressing the demand framework, it was further broadly agreed that a phased approach should be taken identifying key issues and phases.

There was considerable discussion on the role of the cluster group and how it may be able to encourage business to think creatively and move forward on opportunities.  The boundaries between private sector initiatives and the role of Government as a driver were explored.

2. Role of the CCLF and cluster group

The role of the cluster was discussed.  Should the CCLF give clear advice and direction to Government on business opportunities?  Can the CCLF facilitate outputs which encourage business to think more creatively? How can the CCLF make a difference and be effective? How can the CCLF get any messages spread more widely?

It was generally agreed that the CCLF does have a role but this conclusion is subject to the outcomes of the discussions at the next CCLF meeting on the wider future role of the CCLF.

The next steps include recommending to Government that a phased approach is required.  The first phase is a clear education and communications strategy.  The second phase is to move mindsets more widely towards innovation and growing the economy.

3. Phase 1: Educate the market

There was a general consensus that knowledge in the New Zealand market on climate change opportunities is patchy.  There are clearly businesses which have already taken leadership positions and seized opportunities, but wider participation, engagement and consideration is limited. It is vital this is addressed, not only to assist businesses in their carbon management practices but also to shift the current negative mindsets, leverage new opportunities, and cement New Zealand’s international position and export markets.

A clear education and communication strategy is required to be formulated and delivered such that it is not just the first 50,000 who are enlightened but rather this education is extended to the next 450,000.  Broadly, the preliminary phase would highlight how businesses could manage their environmental strategy (and create cost reductions).  Specifically, this would include how to measure carbon within their businesses, understand what the footprint means, and suggest a small suite of top initiatives to reduce.

The delivery of the education and communication strategy would need to consider market segmentation and how different industries may best approach their own strategies.  It should also draw on international learnings and opportunities identified offshore. Issues relevant to energy intensive industries will differ from many of those relevant to SMEs, farmers, forestry, fishing and service industries. Where possible, sectoral case studies would be valuable.

The general view was that it would be preferable that this initially be supported/ initiated by Government. Materials already prepared by Government agencies, such as MfE’s voluntary GHG reporting guidelines and MAF’s carbon footprinting tools could be disseminated more widely.  In this process, the role of Government would be to guide and assist rather than to regulate.

In communicating and delivering, there would be a strong role for business organisations such as Chambers of Commerce and EMA.  It should also draw on other non-Government initiatives such as the Tindall Foundation’s Carbon Farming Group.

Action point: An employee from Vector agreed to draft a phase 1 plan for discussion at the next meeting.

4. Phase 2: Innovation

The second phase should focus on innovation, moving  NZ businesses forward and  growing the economy.  This phase is likely to include other ways to invest, bottom line impacts, demonstrating how a price on carbon will alter investment decisions, making NZ attractive to international investment and creating exportable technology.  A one size fits all model will not work and the challenge will be to implement innovation more widely across different sectors.

The strategy for this phase will be developed at the next meeting.