Cabinet Minute - Sustainable Energy

1. noted that in October 2004, the Cabinet Policy Committee authorised the Minister of Energy to release the discussion document Sustainable Energy: Creating a Sustainable Energy System as a basis for engagement with key stakeholder groups [POLMin (04 ) 23/11];

2. noted that the discussion document was generally well-received by stakeholders and few questioned its main thrust, although some thought it lacked a sense of urgency;

3. noted that stakeholders expressed a general desire for the government to articulate a clearer strategy for achieving sustainable energy objectives;

4. confirmed that the government's objectives for sustainable energy are to create an energy system that is reliable and resilient, environmentally responsible, and in which prices are fair and efficient;

5. agreed that the government's general approach to sustainable energy has to be pitched at a level that balances the need for direction with the need for flexibility;

6. noted that work is already underway to strengthen existing policy settings in specific areas, (for example, more active steps to promote energy efficiency and renewables are being addressed in the context of a review of the National Energy Efficiency Conservation Strategy (NEECS), and issues relating to sustainable transport and oil are being addressed as part of an emerging work programme led by the Ministry of Transport);

7. noted that significant improvements have been, and are continuing o be made, in other key areas as part of ongoing work programmes, (for example, effective and well- regulated electricity and gas markets, climate change policy and the Resource Management Act);

8. agreed that it is important to continue to place the work described in paragraphs 6 and 7 above in the wider context of what the government is trying to achieve in sustainable energy so that connections can be made across areas and momentum is not lost in making improvements which are both important and pressing;

9. noted that in respect of the NEECS review a key challenge will be to articulate coherent strategies for accelerating the uptake of energy efficiency and renewables that draw on and integrate the various efforts of relevant organisations, especially the Energy Efficiency Conservation Authority, the Electricity Commission, the Climate Change Office, the Ministry of Transport, business organisations and local government;

10. noted that a report scheduled for September 2005, led by the Ministry of Transport, will focus on aligning transport policies to contribute to climate change objectives, including exploring opinions for reducing fuel use, optimising transport choices and promoting alternative fuels;

11. noted that the Ministry of Economic Development has recently undertaken a review of its modelling work ahead of a sustainable energy futures report (formerly "Energy Outlook") which will be released by mid-2006;

12. directed sustainable energy officials, led by the Ministry of Economic Development and the Ministry of Research, Science and Technology, to report to the Cabinet Policy Committee (POL) by 30 November 2005 on what steps, if any, should be taken to strengthen the contribution of research, science and technology policy to sustainable energy, including in the areas of research and development, technology testing and international technology collaboration;

13. directed sustainable energy officials, led by the Ministry of Economic Development, to consider what further steps, if any, could be taken to raise awareness of sustainable energy issues, and report their conclusions by 31 December 2005 to the Ministry of Energy in the first instance;

14. directed sustainable: energy officials, led by the Ministry of Economic Development, in consultation with loj:al government and industry groups, to report to POL by 31 December 2005 on steps that can be taken to improve the availability and quality of information to support the development of sustainable energy policies;

15. directed sustainable energy officials, led by the Ministry of Economic Development, in consultation with local government and other relevant stakeholders, report to POL by 31 December 2005 with recommendations on the possible adoption of transition experiments modelled on the Netherlands' experience;

16. directed sustainable energy officials, led by the Ministry of Economic Development, to report to POL by 31 December 2005 on what additional actions could be taken to pursue sustainable energy objectives through government procurement decisions;

17. noted that officials do not consider that any machinery of government changes for sustainable energy are required at present, but recommend that this question be kept under review;

18. directed sustainable energy officials, led by the Ministry of Economic Development, to report to POL by 31 March 2006 on whether the government should produce a further public document on sustainable energy and, if so, what the nature of that document might be;

19. noted that the Minister of Energy indicates that consultation with the government caucuses and other parties represented in Parliament is not required.