New Zealand's lagging behind in the global green race, new report says

Pure Advantage, the not-for-profit organisation developing a green growth strategy for New Zealand, today released a significant report into New Zealand's position in the global green economy. It details how New Zealand is currently lagging behind the rest of the world and how industry can encourage green economic growth to ensure a greener, wealthier future for all New Zealanders.

Entitled ‘New Zealand’s Position in the Green Race’, the report examines the global green race and  provides an appraisal of New Zealand’s environmental performance across a range of parameters.

This report is the first step in Pure Advantage's process and is designed to be a conversation starter
about the potential opportunities for New Zealand in energy efficiency, renewable energy, and the
broader green economy. The report explains how green growth is a path to improved economic
performance, better paying jobs, the protection of our environment, and improved health outcomes
for New Zealand.

The report highlights that what has been missing from the discussion over the change to a green
economy, is the many benefits of green growth. Much of the debate in New Zealand to date has
focused on the downside, the various costs and obligations. But rather than a burden, green growth
can be an economic pathway to create sustainable wealth and promises a revolution in how we
structure our economy and society.

Sir Stephen Tindall, a Pure Advantage Trustee, says this report lays the foundation for future action
by proving that green and growth can go together, saying: “Pure Advantage recognises that
prioritising green growth in NZ’s economic strategy and direction is going to require robust analysis,
coupled with strong leadership. While acknowledging that government and the private sector need
to work together, the first step must be taken by industry.”

Pure Advantage is working with corporate leaders who are willing to take a role in shaping New
Zealand’s green growth future and aims to engage corporates, industry groups, academics, iwi, and
the government, by positioning the discussion towards the huge opportunities offered by the
emergence of a green growth economy.Sir Stephen went on to say that global green growth is potentially worth NZ$6 trillion a year and represents a once-in-a-generation opportunity for New Zealand to improve its economy for the better. Not only could this create further wealth for the country, but it brings with it significant environmental benefits.

The report identifies key examples from countries around the world that have begun to benefit from
the emerging green economy, including Australia, the UK, Sweden, and Israel and offers a broad
based look at where New Zealand’s strengths may lie.

The report finds that while New Zealand’s international branding relies heavily on the competitive
advantage of our 100% Pure New Zealand brand, we continue to slide down the OECD economic
performance tables and our relative quality of life is decreasing. It claims that successive
governments have failed to make the long term strategic decisions needed to address New Zealand’s
economic slide, while at the same time missing opportunities to keep the country green and clean.
For example, New Zealand currently has 1.6 million poorly insulated homes and a high extinction rate
of biodiversity, added to declining water quality and the 5th highest CO2 emissions per capita in
OECD.

Sir Stephen continued: “We have shown in the report that New Zealand has the opportunity to
create wealth by focusing on the global shift to green growth."

New Zealand's Position in the Green Race is the first key piece of research that Pure Advantage has
released, and this report is about broadly assessing New Zealand's performance and opportunities
while developing a vision for New Zealand's future.

The report is a pre-cursor to a macroeconomic review that Pure Advantage has commissioned, the
first of its kind in New Zealand, to identify New Zealand’s key high value green growth opportunities.
The review has been undertaken by internationally respected economists Vivid Economics in
conjunction with the University of Auckland Business School and is due to be released in the third
quarter of 2012.

Interested parties can find out more by downloading the full report at www.pureadvantage.org.

Green Race Report

In a nutshell - New Zealand urgently needs to improve its own environmental record to protect the clean, green image that benefits the sale of much of what New Zealand produces and exports.

Where we are:

• We’re quietly slipping down rankings on just about every environmental and economic performance indicator

• While New Zealand’s international branding relies heavily on portraying our environment and economy as 100% pure, we’re failing our own branding tests across a range of key international metrics

• New Zealand has slipped from 1st to 14th on the Yale University’s Environmental Performance Index

• Our water quality induces 18,000 – 34,000 cases of water borne disease each year

• Our per capita carbon emissions are the fifth worst in the OECD

• We have a falling share of our energy mix coming from renewable energy

• We have a housing stock that’s among the most cold and inefficient in the OECD

• Perhaps worst of all, New Zealand’s native biodiversity is coming under increasing strain as 77% of New Zealand’s threatened species look set to decline

• To make matters worse, all of this is happening as we continue to slide down the OECD economic performance tables and our quality of life is diminishing

• As a result, New Zealand was ranked 23rd in the world in the World Economic Forum’s 2010 Global Competitiveness Index – it specifically notes NZ’s lack of innovation, productivity and poor quality infrastructure

• To boost both our economy and our environment we need to utilise green growth

Why Green Growth?

• Because green growth is worth $6 trillion per year world-wide. More than defence. More than aerospace. New Zealand’s green reputation gives us a head start in this business but we’re not really in the race

• We’re eroding our 100% Pure image, and putting our crucial tourism and export industries at risk

• We need to break out of our short-sighted commodity attitude and embrace our competitive advantage in being green

Where is NZ in terms of green growth

• New Zealand isn’t unique in facing these challenges: many other countries are grappling with climate obligations, poor environmental performance and increasing competition for resources

• Many OECD countries are, however, already demonstrating the link between green growth policies and strong economic performance. Countries all over the world are investing in green development to help their economies’ transition to a more robust, sustainable and environmentally benign platform

• As part of the US Government’s US$787 billion (NZ$1 trillion) stimulus package, US$83 billion (NZ$105 billion) was dedicated towards green economy spending. South Korea devoted 80% of its US$38 billion stimulus package to green growth initiatives. There are lessons from the private sector too. From Israel’s water drip technology to the UK’s world-leading housing retrofit programmes through to Finland’s innovative use of wood for biomass, there are endless examples of green growth driving new economic growth

• While it must be acknowledged that some government initiatives are underway, New Zealand has a long way to go to catch up

• This is especially true if we want to attract the capital, people and ideas that this economy needs to be competitive on the global stage. By harnessing either new or existing technologies and skills developed to improve the sustainability of our production processes, energy efficiency and resource usage, we can give ourselves the ability to maximise the returns from the possibilities available globally from green growth

• For New Zealand it is likely that the best prospects are in the rapidly developing economies of Asia and not with our traditional trading partners, Australia, the US and the UK