Emissions Trading Scheme: Unlikely To Spur Modal Transport Shifts
September 24th, 2009
Road Transport Forum CEO Tony Friedlander says road transport operators need not fear a loss of business to rail or other transport modes as the Emissions Trading Scheme drives up fuel costs. He says “we don’t see any problems in what is being prepared from the point of view of modal competitiveness.” Some 80% of freight hauled in NZ travels 100km or less, a distance where rail struggles to compete. He claims rail is also “far from a fuel efficient mode” in NZ, once carting to the railhead and shunting are taken into account.
The comments are the first response from the Forum, a member of the Greenhouse Gas Coalition. Environment Minister Nick Smith estimates the cost of carbon emissions on motorists will amount to 3c a litre of petrol. Transport fuels will enter the ETS from July next year, six months earlier than planned, and coinciding with the entry for industrial emitters. Friedlander says the forum is more concerned at the potential knock-on effect, or derived demand, if the ETS and measures the Govt proposes introducing disadvantage NZ industry versus international competitors. “We simply cart what is produced or what people consume.”
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