Integrating Economic Transformation and Environmental Sustainability
12. International market and regulatory changes with respect to environmental sustainability are both a significant risk to, and a major opportunity to develop, the government's economic transformation agenda.
13. Consumers in our traditional markets are becoming more discriminating about environmental isssues in their purchasing decisions. Not only are consumers demanding goods and services with environmental integrity, but they are also taking a much closer interest in the environmental credentials of the firms concerned at all levels of the supply chain. A similar pattern is starting to be seen in the consumer markets of the new economies of China and India which will become increasingly important to New Zealand over time.
14. Many governments in our key markets are also responding to environmental challenges with increasingly stringent policies. Climate change, in particular, is a significant driver of profound and permanent changes in the conditions under which businesses operate, not only in relation to measures which address the carbon footprint of goods and services but potentially also broader environmental impacts, e.g. on bio-diversity and water quality etc.
15. Against this background of market and regulatory change, New Zealand and New Zealand firms are currently viewed in a generally favourable light. New Zealand is widely admired as a country whose environment is relatively unspoilt and where business is conducted fairly and honestly.
16. These perceptions are very significant assets for New Zealand. They help instil confidence in New Zealand goods and services and allow these to command a premium in world markets. It would be unwise, however, to take it for granted that this will always be the case. Moreover, it would be a lost opportunity not to seek to use these assets more productively.
17. Many international firms are already seeking to take advantage of changing goverrnment policies and consumer preferences by giving more weight to environmental considerations as a point of differentiation from their competitors.
18. Some New Zealand firms are also positioning themselves more favourably in overseas markets by expressly marketing their goods and services as environmentally-friendly, e.g. Grove Mill's use of Landcare's "carboNZero" programme.
19. A number of countries are also recognising the increasing importance of environmental integrity as a source of competitive advantage and as a driver of economic development, both in terms of new business opportunities and as a spur to innovation throughout the economy.
20. In the United Kingdom, for example, the Department of Trade and Industry and the Department for Environment, Food and Rural Affairs are working together to position Britain so as to take maximum advantage of the new markets, jobs and opportunities being created by the "green wave". Considerable sums have been, and are being, invested in the development of climate-friendly technologies such as marine power.
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