Integration with Concurrent Processes
19. The development of a New Zealand Energy Strategy will be a whole of government process due to the inter-linkages with other concurrent processes such as the development of climate change policy and the replacement NEECS. A system-wide perspective will take account of energy outcomes from other policy processes and identify how a New Zealand Energy Strategy fits with other strategic frameworks.
20. As a subset of the NZES, the replacement NEECS needs to be consistent with the broader organisational principles developed in the NZES that have an impact on energy efficiency and renewable energy sources. Similarly the NZES will need to take account of the strategic framework and goals established for climate change policy which have implications for the energy sector.
21. NEECS Replacement The National Energy Efficiency and Conservation Strategy (NEECS) in place since September 2001 is to be replaced. A Cabinet Paper advising the reasons for my decision was considered by the EDC Cabinet Committee on 27 March 2006 (Cab Min (06) 10/6 refers).
22. The Energy Efficiency and Conservation Act sets out statutory obligations around the process of developing a replacement NEECS as well as the formal oversight and governance arrangements. Given the scope and content of the replacement NEECS and the likely overlap in the timing of developing both a replacement NEECS and the New Zealand Energy Strategy, officials are ensuring that the work streams and related processes are coordinated as much as practical.
23. It is important to ensure that stakeholder consultation and other development processes are complementary and, where possible, integrated by means of a common timetable - while meeting the statutory process and implicit governance requirements set out by the Act. Appendix 2 sets out the parallel phases of development for the NZES and NEECS.
24. The current NEECS is due for replacement in September 2006. To allow the NZES and replacement NEECS to be released at the same time the current NEECS will be rolled over until both strategies will have been finalised.
25. Climate Change policy development: In December 2005 the government announced, as part of a review of climate change policy, that it would not proceed with the implementation of a carbon tax, originally proposed for introduction in 2007. Officials were requested by Cabinet (CBC Min (05) 20/10) to report back on a number of energy work programmes related to climate change, including the development of the New Zealand Energy Strategy and the National Energy Efficiency and Conservation Strategy. Cabinet considered a report about climate change strategic issues, and a whole-of-government work programme to reduce greenhouse gas emissions on 23 May 2006.
26. State Services Commission review of the Electricity Commission and the Energy Efficiency and Conservation Authority: The SSC is currently overseeing a review of "energy efficiency policy and operational functions" of Energy Efficiency and Conservation Authority, the Electricity Commission, the Ministry of Economic Development and the Ministry for the Environment. The findings of this review will inform the draft strategy. Once the strategy is completed it will be necessary to ensure that the institutional structures going forward fit the roles and responsibilities defined in the strategy.
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