Freight costs to rise if emissions target set in stone
August 13th, 2009
The Govt’s target of 10-20% greenhouse gas emissions reductions against 1990 levels by 2020 is a middle ground compared to the ’40% by 2020′ cut promoted by Greenpeace, a target which may have driven some businesses to the wall by lifting costs. To get anywhere near the top of the proposed range, other nations, particularly developing countries, need to make meaningful commitments. Even so the Road User Forum says the target “is going to be difficult to achieve.” Spokesman Clive Litt says “it’s far more realistic than the extreme positions advocated by organisations like Greenpeace.”
Petrol prices could rise by between 3.7c a litre and 12.3c a litre depending on the price of carbon. Litt says it’s a cost which will be passed on to transport sector customers by way of increased freight rates. Transport makes up about 20% of NZ’s emissions, putting it second behind agricultural output of nitrous oxide and methane.
The forum concurs with the Greenhouse Policy Coalition, which represents the nation’s major emitters, and says the targets are “ambitious.” The coalition members represent the transport industry’s biggest customers, including Fonterra, Carter Holt and the major coal miners.
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