Integrating Māori Perspectives

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26 April 2019 Prepared by:

Integrating Māori Perspectives An analysis of the impacts and opportunities

for Māori of options proposed by the Interim Climate Change Committee

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Authors: James Whetu and Amy Whetu

All work contained within this report has been completed for the use of the client, being the Interim Climate Change Committee. Any use outside of the client’s purposes was not intended and no responsibility will be accepted for such use. Whetu Consultancy Group takes every effort is to ensure that the information, analysis, findings and interventions provided to the client are accurate and reliable. Whetu Consultancy Group however, shall not be liable for any adverse consequences of the client’s decisions made in reliance of this report or any other. Whetu Consultancy Group does not give or imply any warranty as to whether any report provided will assist in the performance of the client’s functions.

© Whetu Consultancy Group 2019

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Executive Summary

This analysis seeks to identify potential issues or impacts resulting from proposed policy options considered by the Interim Climate Change Committee, for Māori as iwi, as kaitiaki, as industry participants, and as part of the general population. This report brings together the research, data and evidence that was gathered in response to the views and perspectives by Māori who participated in technical workshops and interviews, and through engagement forums shared directly to the Interim Climate Change Committee or its Secretariat. Those perspectives were then contextualised (acknowledging that there are limitations in this approach) to review and analyse the investigation of the Interim Climate Change Committee. The report seeks to provide a place for the wider Māori perspective related to resource management and response to climate change, whilst also addressing the two key questions directed to the Interim Climate Change Committee. It is important to state that the report has aimed to provide a Māori perspective that acknowledges the holistic nature and broader ideals of Māori, such as the environmental, social, cultural, spiritual, political, and economic notions within any policy development. In doing so, the report has simplified the specific nuances of the Māori perspective when expressed by particular iwi or by a hapū. Continued engagement and collaborative work with Māori will need to be an essential part of any further investigation into New Zealand’s response to climate change, and that of the Interim Climate Change Committee, to ensure that those specific nuances are recognised and provided for. From the research, modelling, investigations and subsequent interventions of the Interim Climate Change Committee it is clear that the overall goals of reducing New Zealand’s emissions are of paramount priority within the context of any proposed policy. The hard reality of this is that in nearly all instances, the proposed options will in some way impact New Zealanders. Investigating the extent of these effects, both positive and negative, was critical to establishing whether these effects were different or disproportionate for Māori. Agricultural Workstream The goal of addressing agricultural emissions within New Zealand’s climate change policy framework is a key focus of the workstream in combination with supportive on-farm measures. The concept of establishing a framework that holds accountability and liability for those who create emissions is supported by those Māori that participated in the investigation. The resulting policy recommendations have been considered to be based on the best outcomes for emission reduction and with the least impact for New Zealanders overall. The following impacts to Māori were identified:

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> Governance and Decision-Making may be further challenged by proposed policy changes and timeframes due to existing land ownership challenges

> The resulting land use changes may compromise the Māori workforce with greater socio economic risks for Māori

> Farm practice and land management changes may be harder to achieve and are more likely to result in decreased profitability for some Māori land owners due to existing land ownership challenges

> Pricing emissions based on current land uses and land classes may result in wins as well as losses for Māori land owners

> Allocation options considered may challenge concepts of rights and interests resulting in contemporary Treaty of Waitangi claims

Within the scope of the investigations and proposed options, the following measures have been suggested:

• Ensuring timeframes of policy introduction specifically reflect processes and decision making challenges faced by Māori

• Ring fenced funding for the development of specific Māori focused training and extension services, by Māori for Māori

• Funding to assist with mitigation and land use change to ensure uptake and ease transition for higher land use classes

• Access to funding to assist with land utilisation • The development of a robust partnership approach working with Māori to address

emissions policy moving forward

Electricity Workstream There are considerable economic opportunities for Māori in the development and expansion of geothermal electricity generation under the proposed options discussed within the Electricity Workstream, as well as other opportunities for innovation. There are however some areas of the proposed options with transitioning New Zealand towards 100% renewable electricity that are not easily supported by those Māori that participated in the investigation. For many, the social, cultural, spiritual, economic and environmental impacts from existing renewable electricity generation (and its associated infrastructure), especially hydro-generation, are still relevant and enduring. Māori aspirations outlined within Treaty settlement legislation, and the values and perspectives expressed in respective Deeds of Settlement, search for improved management (and enhanced states) of New Zealand natural resources, and the landscapes within which these resource are located. Investing in, or providing certainty towards, the development and/or expansion of existing renewable

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electricity generation and the use of natural resources (especially freshwater), may have cause for concern for some Māori. Building enduring relationships will be critical to addressing these issues from the outset and finding solutions to work through them. The accelerated option of transition towards electrification, specifically the introduction of electric vehicles, is supported in the context of reducing New Zealand’s emissions but Māori participants expressed that the appropriate support needs to be provided. The identified impacts for Māori resulting from the proposed renewables transition are:

> Compromising Māori Ownership/Proprietary rights and interests in proposed renewable resources

> Impacts for Māori ancestral land, water, sites, waahi tapu, taonga of continued access to hydropower and pursuit of renewable generation

> The possibility of disproportionate impacts for Māori in relation to electricity price increases and access to low emissions technologies

Within the scope of the investigations and proposed options, the following measures have been suggested:

• Relationship building on a genuine enduring basis

• Seeking partnerships ahead of strategy, engaging and involving Māori at the outset

• Consider relevant outcomes around other resource ownership, use and governance models

• Support Māori to overcome any institutional barriers existing within and around land ownership in the context of resource development

• Work within existing policy directives around resource protection to meet and provide for Māori values

• Consider funding specific Māori roles within projects and strategy, to overcome key person fatigue and support the growth and development of future participation in the industry

• Education programmes and incentivisation targeted to appeal and fit Māori

• Developing incentives for landlords to provide tenants with home generation technologies but prevent rent increases on this basis – landlords of low income housing having access to some incentives available to low income home owners

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• Ensuring these incentives for home generation and Electrical Vehicles are available to marae

• Develop targeted funding for retraining in identified emerging industries and develop pathways from school into industry with funding tagged for Māori providers and programmes prioritising uptake for Māori

• Support Māori communities, especially remote Māori communities, in the capacity and capability to transition towards micro-scale electricity generation and supply.

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Table of Contents

Executive Summary .................................................................................................................. 3

PART 1: CONTEXT AND ANALYSIS FRAMEWORK .............................................................. 10

1. Introduction .................................................................................................................... 10

1.1 Purpose of Report ................................................................................................... 10 1.2 Reports Commissioned by the ICCC ........................................................................ 12

2. Investigation of the Interim Climate Change Committee ............................................... 12

2.1 The ICCC Investigation ............................................................................................ 12 2.2 ICCC Policy Approach .............................................................................................. 14

2.2.1 Agricultural Emissions ..................................................................................... 14 2.2.2 Transition to 100% Renewables Electricity and Energy .................................. 14

3. Investigation and Overarching Māori Perspective ......................................................... 15

3.1 Review and Analysis ............................................................................................... 15

3.1.1 Key Outcomes and Interventions from Agricultural Emissions Policy ............ 16 3.1.2 Key Outcomes from Renewable Electricity/Energy Policy .............................. 17

3.2 Effects, Impact and Economic Risks and Opportunities ......................................... 17

4. Overarching Te Ao Māori and Mātauranga Māori Perspectives .................................... 18

4.1 Māori World View .................................................................................................. 18 4.2 Te Ao Māori and Mātauranga ................................................................................. 19 4.3 Kaitiakitanga and the role of Kaitiaki ...................................................................... 21

4.3.2 Land and Resource User (Contemporary) Application of Kaitiakitanga .......... 22 4.3.3 Kaitiakitanga and response to Climate Change .............................................. 23 4.3.4 Statutory Influence on Kaitiakitanga and Māori Land Management .............. 26

4.4 Directly Affected Parties – Māori Interests in Agriculture ...................................... 28 4.5 Directly Affected Parties – Māori Interests in Renewable Electricity ..................... 29

PART 2: AGRICULTURAL EMISSIONS ................................................................................ 30

5. Agricultural Emissions Policy .......................................................................................... 30

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5.1 ICCC Agriculture Policy Approach ........................................................................... 30

5.1.1 Pricing or Proxy Pricing Measures .................................................................. 30 5.1.2 Enabling Measures .......................................................................................... 31

5.2 Which Agricultural Emissions? ................................................................................ 31 5.3 Policy Considerations (Key Interventions) .............................................................. 32

5.3.1 Option 1: Mandatory Farm Plans (with prescribed good farming practices) . 32 5.3.2 Option 2: Limits on Emissions (with farm plans as a support tool) ................ 32 5.3.3 Option 3: Emissions Trading Scheme (with farm plans as a support tool) ..... 33 5.3.4 Option 4: Emissions Levy/Rebate Scheme (farm plans as support tool) ........ 33 5.3.5 On-Farm Mitigation Options - Ability to Respond to Price on Emissions ....... 33

5.4 Review of Interconnected Issues ............................................................................ 34 5.5 Analysis of Proposed Key Outcomes and Interventions ......................................... 34 5.6 Identified Issues and Impacts for Māori ................................................................. 38

5.6.1 Governance and Decision-Making .................................................................. 38 5.6.2 Land Use Changes ........................................................................................... 38 5.6.3 Farm Practice and Land Management Changes ............................................. 38 5.6.4 Pricing Emissions ............................................................................................ 39 5.6.5 Allocation Options and contemporary Treaty claims ..................................... 39

5.7 Potential Opportunities for Māori .......................................................................... 40

5.7.1 Research, Programme Delivery, Development and Branding ........................ 41

6. Agriculture Emissions – Potential Interventions ............................................................. 41

6.1 Enabling Success for Māori ..................................................................................... 42 6.2 Specific Opportunities for Engagement .................................................................. 42 6.3 Pricing or Motivating Policy .................................................................................... 43 6.4 Maximising Enabling Policies for Māori .................................................................. 43

PART 3: TRANSITION TO 100% RENEWABLE ELECTRICTY AND ENERGY .......................... 45

7. Renewable Electricity and Energy .................................................................................. 45

7.1 ICCC Renewable Electricity and Energy Policy Approach ....................................... 45 7.2 Review of Proposed Key Outcomes - Identified Issues and impacts for Māori ...... 46

7.2.1 Actual/Potential Impact – The Continued Use of Natural Resources ............. 47 7.2.2 Potential Economic Risks/Opportunities – Renewable Generation ............... 48

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7.2.3 Actual/Potential Impacts – Price Increases and Access to Low Emission Technologies ................................................................................................................... 49

8. Transition to Renewables: Potential Interventions ........................................................ 51

8.1 Use of Natural Resources ....................................................................................... 51 8.2 Māori Participation in Transitioning to 100% Renewable Electricity ..................... 52 8.3 Socio-Economic Impacts for Māori ......................................................................... 52

9. Conclusion ...................................................................................................................... 54

Appendix A - Methodology ..................................................................................................... 55

Appendix B - Review of Iwi Management Plans and Climate Issues ...................................... 60

Appendix C - Proposed Policy Iteration .................................................................................. 75

Appendix D - Agriculture Emissions: Supplementary Information ......................................... 77

Appendix E - Transition to Renewable: Supplementary Information ................................... 106

References ............................................................................................................................ 128

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PART 1: CONTEXT AND ANALYSIS FRAMEWORK

1. Introduction

1.1 Purpose of Report

Whetu Consultancy Group (Whetu) has been commissioned by the Interim Climate Change Committee (ICCC) to provide support in identifying potential issues for Māori associated with their proposed policy options and/or strategy. This is in response to the two key questions proposed to the ICCC by the Government:

• How surrender obligations could be arranged if agricultural methane and nitrous oxide emissions enter New Zealand’s Emissions Trading Scheme (ETS), and

• Planning for the transition to 100% renewable electricity by 2035 (which includes geothermal) in a normal hydrological year

The ICCC requested specific support from Whetu to:

1. Apply an overarching Te Ao Māori and mātauranga Māori perspective to the ICCC’s work programme, and ensuring a narrative is developed that is then reflected in the ICCC’s outputs

2. Review the ICCC’s key outcomes in relation to energy and climate change, and analysing the effect, impact and economic risks and opportunities for Māori

3. Review the ICCC’s key outcomes and interventions relating to agriculture and climate change, and analysing the effect, impact and economic risks and opportunities for Māori

The requirement was to provide data and evidence to support the review, analysis and report. There are four parts to the report, along with appendices, to structure the report:

PART 1 – CONTEXT AND ANALYSIS FRAMEWORK

This part of the report provides a summary of the investigation by the ICCC to contextualise the review, analysis and reporting by Whetu. Also contained within Part 1 is an outline of the overarching Māori perspective adopted for the analysis, and two individualised frameworks applied by Whetu against the proposed agricultural and energy policy options.

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PART 2 – AGRICULTURAL EMISSIONS

Content outlined in Part 2 focuses specifically on the proposed agricultural emissions policy workstream (key outcomes and interventions), and a summary of the key effects, impacts, economic risks and opportunities on Māori and full outline of potential solutions (as recommendations)

PART 3 – TRANSITION TO 100% RENEWABLE ELECTRICITY AND ENERGY

Part 3 is an assessment of the proposed renewable electricity and energy policy workstream (key outcomes and interventions), and a summary of the key effects, impacts, economic risks and opportunities on Māori, and outlines a number of potential solutions (as recommendations).

PART 4 – CONCLUSION

A synthesis of the key issues and options in relation to Māori impacts with concluding comments.

APPENDICES

Within the appendices is the methodology of the review and analysis and other relevant information, as well as the full review and analysis of the effects, impacts, economic risks and opportunities on Māori across the two ICCC programmes.

This report is intended to be a stand-alone report for the ICCC to contain the full analysis and information that reflects the overarching Māori perspective regarding New Zealand’s response to climate change. It is acknowledged however that the report is necessarily wider than the investigation of the ICCC.

Where appropriate, the analysis and information has been contextualised to respond to the ICCC’s investigation into the two key questions, with relevant aspects of the analysis and information of the report complemented in the individual reports (Agricultural Emissions and Transition to 100% Renewable Electricity reports) prepared by the ICCC. It is anticipated that the reports will be read in conjunction with each other.

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1.2 Reports Commissioned by the ICCC

A number of expert reports were commissioned by the ICCC and have informed aspects of the review and analysis. These reports are:

• Field, M, (2019). Modelling retail electricity prices under high renewables and low emissions scenarios: An analysis of what the Interim Climate Change Committee's modelling means for retail electricity prices in 2035. New Zealand: Martin Jenkins and Associates

• Motu. (2019). Potential social impacts of land-use changes, 2020-2050: Report to the Interim Climate Change Committee. New Zealand: Motu.

• Nana, G. (2019). GHG costs and benefits on different land classes – supplementary for Māori and iwi land. New Zealand: BERL.

• Reid, A., Smiler, A., Nana, G. & Hurren, K. (2019). Education, training and extension services for Māori land owners. New Zealand: BERL and FOMA.

• Taylor, N. (2019). Potential impacts of price-based climate policies in rural people and communities: A review and scoping of issues for social impact assessment. New Zealand: Nick Taylor & Associates.

• Van Reenen, E. (2019). Draft report – GHG costs and benefits on different land classes: Prepared for the Interim Climate Change Committee. New Zealand: AgFirst.

Additionally, the ICCC commissioned modelling and other expert advice for the Electricity workstream to consider various futures to inform their recommendations.

2. Investigation of the Interim Climate Change Committee

2.1 The ICCC Investigation

The ICCC is an independent committee that has been established by the Government to provide advice on how New Zealand should transition to a net zero emissions economy by 2050 and respond to New Zealand’s commitment to support the 2015 Paris Agreement to hold the increase in the global average temperature to well below 2°C above pre-industrial levels.

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The ICCC is a precursor to the Climate Change Commission that is expected to be established under the Zero Carbon Bill in late 2019, and as stated earlier in the report, the ICCC has been asked to provide advice in two areas:

• How surrender obligations could be arranged if agricultural methane and nitrous oxide emissions enter New Zealand’s Emissions Trading Scheme (ETS), and

• Planning for the transition to 100% renewable electricity by 2035 (which includes geothermal) in a normal hydrological year

With question 1, the ICCC has considered1 how agriculture could be included in the New Zealand Emissions Trading Scheme, and have taken a broader approach of considering the full suite of policy options that could help deliver emissions reductions in the agriculture sector that are consistent with the Government’s objective for a ‘just transition’. Similarly with question 2, the ICCC has considered2 more broadly how the country could transition towards 100% renewable electricity generation whilst making the most impact on emissions reductions. They have considered this whilst taking into account three key goals. These are:

• Minimising emissions from electricity generation; • Security of supply; and, • Affordability for consumers.

These three goals are commonly referred to as the energy trilemma. In addition to the investigation of transitioning to 100% renewable electricity by 2035, the ICCC have also considered the potential of New Zealand’s electricity generation to reduce emissions in transport and process heat. This extension of question 2 is reflective of these other sources of emissions, such as transport (19% of emissions) and process heat (9% of emissions), being largely due to its use/reliance on fossil fuels. By replacing fossil fuels in these two areas with renewable electricity it is anticipated that this will have the potential to substantially reduce New Zealand’s emissions.

1 At the writing of this report dated 8 April 2019. 2 At the writing of this report dated 8 April 2019.

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Overall, New Zealand’s commitment towards its 2030 target under the Paris Agreement requires considerable change from the status quo. Time is of the essence. New Zealand’s 2030 target is a cumulative target – it is made up of all emissions between 2021 and 2030 (not just emissions in the year 2030). In other words, emissions every year from 2021 to 2030 matter, and progress must begin immediately to bring emissions down. To meet its target, New Zealand can only emit about 600 Mt CO2e over this period, but government projections show New Zealand is on track to overshoot this target by about 200 Mt CO2e.3

2.2 ICCC Policy Approach

The approach that has been adopted by the ICCC and subsequently this report, is different within the two main goals being pursued.

2.2.1 Agricultural Emissions

The focus for the Agriculture workstream was clearly directed to consider policy options, outcomes and impacts should agricultural emissions be incorporated into the NZETS or some alternative options. As a result, this report has been able to consider more specific policy proposals within the agricultural context, and within the matrix of Māori sub-groups.

2.2.2 Transition to 100% Renewables Electricity and Energy

The focus for the Electricity workstream however, was less defined within the policy context and sat more around modelling and considering the feasibility of transitioning to 100% renewable electricity. The team have been investigating how this might be achieved, considering barriers such as supply and demand issues. As a result of this approach, this report has focused more around identification of issues for Māori that have arisen when considering proposed futures or strategies to achieving the end goal, rather than particular policies. For example: To achieve the goal of transitioning to 100% renewable electricity we would need to focus on development of new energy streams such as geo-thermal, wind or solar. We then considered how such a strategy or scenario might impact Māori across the spectrum.

3 Interim Climate Change Committee. (2019) Accelerated Electrification. Section 1.1.

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3. Investigation and Overarching Māori Perspective

3.1 Review and Analysis

It is important to put into context the analysis framework within the broader climate change response in New Zealand. It is considered that there are multiple factors associated with New Zealand’s response to climate change, and there are different pathways that each factor will lead to, including interacting with other policy programmes. For this analysis, it is the investigation by the ICCC towards reducing New Zealand’s emissions, shown below in the blue hexagon.

Figure 1: Multi-faceted Issues Diagram

As illustrated in the diagram above, there are other factors (not an exhaustive list) identified in green that are part of the broader climate change programme, as well as the complementary interests and perspectives of Māori identified in orange (again not an exhaustive list).

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In developing a framework to review, analyse and report on the effects, impact and economic risks and opportunities to Māori, this broader context needed to be considered as it is part of the overarching Te Ao Māori and Mātauranga Māori perspective. The writers were supported by a group of 23 technical Māori experts from across New Zealand that participated in discussions and provided comments, advice and input into the research phase and the reports analysis. Their skillsets in agriculture, energy, Māori land, climate change and science, were invaluable support for this project.

To accommodate a Māori perspective that could both provide the holistic nature of resource management, whilst also specifically addressing the ICCC’s investigation, Whetu performed the following:

3.1.1 Key Outcomes and Interventions from Agricultural Emissions Policy

The direction to Whetu was to:

• Apply an overarching Te Ao Māori and Mātauranga Māori perspectives, and

• Review the ICCC’s key outcomes and interventions relating to agriculture and climate change, and analysing the effect, impact and economic risks and opportunities for Māori

Whetu did not review nor analyse the process surrounding how the policy was developed (eg what the policy needed to achieve), nor did Whetu review or analyse the methods to reduce emissions (includes calculations). The review and analysis focused on the ICCC’s key outcomes and interventions. Whetu have defined the ICCC’s key outcomes and interventions as:

Outcomes

• Investigative Reports (both prepared and commissioned by the ICCC) • Workshop presentations and notes, and • Final Report and Recommendations

Interventions

• Proposed Policy Options

The review was on the key outcomes of the agriculture emissions investigation. Whetu sought to identify the effects, impacts and economic risks and opportunities for Māori through the application of the overarching Māori perspective that is outlined in section 4 of the report.

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The primary focus of the analysis was on the key interventions, the proposed policy options of the ICCC.

3.1.2 Key Outcomes from Renewable Electricity/Energy Policy

Similar to the approach for agricultural emissions, Whetu have applied the same definition to identify key outcomes of the ICCC Electricity workstream and also did not review nor analyse the process in how the policy was developed, the energy trilemma goals, nor the development of the three futures. Again, the review and analysis were on the key outcomes sought to identify the effects, impacts and economic risks and opportunities for Māori through the application of the overarching Māori perspective outlined in section 4 of the report.

3.2 Effects, Impact and Economic Risks and Opportunities

Whetu have used the Resource Management Act 1991 (RMA) definition of effect in analysing the proposed key outcomes and interventions. This definition is expansive and details the breadth and width of possible effects/impacts that should be considered in a project such as this, in the view of the writers. The definition under section 3 of the RMA is:

Meaning of effect: In this Act, unless the context otherwise requires, the term effect includes— (a) any positive or adverse effect; and (b) any temporary or permanent effect; and (c) any past, present, or future effect; and (d) any cumulative effect which arises over time or in combination with other effects—regardless of the scale, intensity, duration, or frequency of the effect, and also includes— (e) any potential effect of high probability; and (f) any potential effect of low probability which has a high potential impact.

With impact, Whetu have primarily focused on the disproportionate aspects on Māori resulting from the proposed key outcomes and interventions. These disproportionate impacts primarily capture economic unfairness to Māori or consideration of current inequities being further entrenched by policy recommendations. It is from the disproportionate impact that Whetu have identified the economic risks and opportunities to Māori.

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4. Overarching Te Ao Māori and Mātauranga Māori Perspectives

4.1 Māori World View

It is recognised that there is no one Māori world view or perspective on resource management, and that the perspective is different for each iwi, hapū, marae and whanau. Additionally in context of the analysis regarding climate change and the effects, impacts and economic risk and opportunities to Māori, the perspective is extended to be also inclusive of Māori industry in land and resource use, and Māori as mātāwaka and as members of general population. The table frames Māori into those respective categories. It is anticipated that some effects, impacts and economic risks and opportunities will traverse these categories, as will many individuals and their perspectives.

Table 1: Potentially Impacted Māori

Māori

Treaty Partners

(Constitutional)

Kaitiaki

(Well-being)

Māori in Industry

(Business and Land Interest)

Māori as General Population

(Quality of Life)

Responds to Te Tiriti o Waitangi (articles and principles), with a lens on law, constitution, Waitangi Tribunal claims, and institutions. Post Settlement Governance Entities as organisations that administer land defined as General Land for or on behalf of Māori (PSGE’s).

Recognises the relationship Māori as iwi, hapū, marae, whānau have with ancestral lands, water, sites, wāhi tapu and taonga.

This category would also include Māori farmers or entities that own or manage pastoral land that is defined as Māori land under Te Ture Whenua Māori Act 1993 (e.g. Māori Incorporations and Trusts).

Pan-Māori Organisation (Māori Industry) – Organisations and industry bodies that are owned and/or operated primarily by Māori for Māori. These organisations do not represent iwi organisations. An example of such an organisation that operates outside of iwi relationships is the Federation of Māori Authorities (FOMA).

This represents Māori as individuals in society or the community and in their own setting. This would include individual Māori farmers that own or manage pastoral land, as well as citizens in society and as consumers.

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The approach strengthens the identification of effects/impacts and economic risks and opportunities, as well as helping to identify opportunities and solutions at a number of levels. The overarching Māori perspective has evolved as more information from the investigations and proposed policies for agricultural emissions and renewable electricity/energy were released, as well as the views arising from the individual interviews with key Māori technicians. It is from the review and engagement with Māori that the overarching Māori perspective has resulted in two key components:

1. Te Ao Māori and Mātauranga • Kaitiakitanga and • The role of Kaitiaki (includes contemporary application and statutory/legal

institutions on Kaitiakitanga and on Māori Resource Users) 2. Directly Affected Parties (eg Point of Obligation)

Furthermore, the intent of the review, analysis and report is not to supersede or replace the individual perspectives of each grouping (eg iwi, hapū, kaitiaki, tangata whenua, industry) but to ensure that the ICCC can consider within their investigation and proposed policy options an overarching Māori perspective. It is through this approach that Whetu have provided support to the ICCC.

4.2 Te Ao Māori and Mātauranga

Ko Rangi Ranginui – Sky Father

Ko Papa Papatuānuku – Earth Mother

Ka puta Ko Rongo Gave birth to Rongomatāne – God of Peace and Cultivated Foods

Ko Tanemāhuta Tanemāhuta – God of Forests and its Wildlife

Ko Tangaroa Tangaroa – God over Sea and Fishlife

Ko Tūmatauenga Tūmatauenga – God of conflict and human behaviour

Ko Tāwhirimatea Tawhirimatea – God of weather

Ko Haumiatiketike Haumiatiketike – God over the uncultivated Foods

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Tokona ra ko te rangi ki runga ko te papa ki raro Through the separation of Ranginui to the sky and of Papatuānuku to the earth

Ka puta te ira tangata, ki te whai ao ki te ao marama Humankind was birthed, from darkness (not knowing) to light (to being enlightened)

Tihei Mauriora4 Māori perspectives of the world are based on the proposition that the environment is an interacting network of related elements, each having a relationship to the other and to earlier origins5. Illustrated in the karakia/incantation above, the personification of the earth and the sky as the parents Rangi and Papa, underlines the point by comparing the features of the environment to a family, and as a model for examining the connections and interdependencies which occur between forests and oceans6 for an example. The karakia/ incantation aims to explain that people are part of nature rather than superior to it, and that people exist in a state of balance with other elements without dominion over the natural environment. New Zealand’s landscape therefore represents ancestors from whom people are descended. Mātauranga Māori is an integral element of understanding and engaging with and in the Māori world (Te Ao Māori). It spans Māori knowledge, culture, values and worldview7, and is embedded in the relationship between people and natural resources, and the relationship between people and their bodies of knowledge as mātauranga Māori is explained through kinship/whanaungatanga.8 Pūrākau (story telling around histories and mythology) and maramataka (Māori lunar calendar) are forms of mātauranga Māori, and comprise knowledge generated using methods

4 The karakia is “a” karakia, and not “the” karakia and is being used to provide context to the interconnectedness between environs and people. It is also important to note that there are many variations to this karakia. 5 Durie, M. (1998). Te Mana, Te Kāwanatanga: The Politics of Self Determination. Oxford University Press: Wellington. At page 21. 6 Ibid. at page 22. 7 Hikuroa, D. (2018). Mātauranga Māori - the ūkaiō of knowledge in New Zealand. [Seminar]. Retrieved from: https://www.victoria.ac.nz/events/2018/05/matauranga-maorithe-Ukaipo-of-knowledge-in-new-zealand 8 Tuatahi, T. (2011). Ko Aotearoa tēnei: A Report into Claims Concerning New Zealand Law and Policy Affecting Māori Culture and Identity (Waitangi Tribunal Report). At page 105. Retrieved from: https://forms.justice.govt.nz/search/Documents/WT/wt_DOC_68356054/KoAotearoaTeneiTT1W.pdf

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and techniques consistent with scientific methods, but explained according to a Māori worldview, often binding people, places and relationships.9 Mātauranga Māori gives expression to Māori ways of doing, aspects of Māori knowledge and Māori worldview and is often aligned with aspirations.10

4.3 Kaitiakitanga and the role of Kaitiaki

Durie11 describes kaitiakitanga as the act of guardianship that requires clear lines of accountability to whānau, hapū and iwi and is more frequently associated with obligation rather than authority. The Waitangi Tribunal report (2012)12 shares the view regarding this description, but extends that the description lacks the spiritual dimension that animates the concept and is a product of whanaungatanga, or the intergenerational obligation that arises by virtue of the kin relationship13. The Tribunal reports that it is not possible to have kaitiakitanga without whanaungatanga, and vice versa that whanaungatanga creates kaitiakitanga obligations.14 Overall, kaitiakitanga in an environmental management context, is about upholding the care of the ancestors whom are manifested in the landscapes that Māori live within. In environmental terms, the kaitiaki approach is holistic and provides for restoration of damaged ecological systems, restoration of ecological harmony, increased usefulness of resources, and reduced risk to present and future generations.15 In the role of kaitiaki, whānau, hapū and iwi as tangata whenua, Reverend Māori Marsden suggest that there are three principles that guide kaitaiki:

9 Smith, L.T., Maxwell, T., Haupai, P. & Pou T. (2016). Indigenous knowledge, methodology and mayhem: What is the role of methodology in producing indigenous insights? A discussion from Mātauranga Māori. Knowledge Cultures, 4(3), 131-145 at 2. Retrieved from https://researchcommons.waikato.ac.nz/handle/10289/11493 10 Royal, T.A. (2012). Politics and knowledge: Kaupapa Māori and mātauranga Māori. New Zealand Journal of Education Studied, 47(2), 30-37. https://search-informit-com-au.ezproxy.waikato.ac.nz/fullText;dn=446746674901479;res=IELHSS 11 Supra. n 5. 12 Waitangi Tribunal. (2012). The Stage 1 report on the national freshwater and geothermal resources claim: Wai 2358. Section 2.7. Retrieved from: https://forms.justice.govt.nz/search/Documents/WT/wt_DOC_59941926/Wai2358W.pdf 13 Ibid. at page 105. 14 Ibid. at page 105. 15 Matunga, H. P. (1994). The Resource Management Act 1991 and Māori Perspectives. Centre for Māori Studies and Research, Lincoln University.

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• Humankind’s contribution is to enhance and maintain the life support systems of Papatūānuku

• People should treat Papatūānuku with love and respect in recognition of her life supporting function, her role in the creation of the natural world, and her place in our own whakapapa, and

• No-one owns Papatūānuku, but are recipients, and therefore stewards, of the natural environment

Additionally, the Māori concept and practices of food supply and food security are integral to Māori as they emanate mana (authority), demonstrate manaakitanga (reciprocity of kindness, respect and humanity), and mahinga kai (traditional food gathering places and practices). It is in the latter where the relationship between environment and community and individual health is prominent, whilst also reinforcing whakapapa (genealogical ties), cultural identity and resilience.16 The ability to provide ample food is a measure of wealth, representing economic and social power, and hence bestowing mana.

4.3.2 Land and Resource User (Contemporary) Application of Kaitiakitanga

For Māori, the whenua (land) is a source of identity, food, and other resources that have sustained people for hundreds of years. As described above paragraphs, the whenua is Papatūānuku, the Earth Mother.17 Land is also the site of waahi tapu (sacred sites) and waahi taonga (historical sites and other places of significance to Māori), such as urupā (cemeteries), battlegrounds, and locations for gathering precious resources18. Before the arrival of colonial settlers, all land in New Zealand was held as customary land. One of the primary tasks of the early Native Land Court was to define the boundaries of that land and convert it from communally held land by allocating owners and shares,19 and this has evolved into the Māori land system that exists today, especially distinguishing how land is valued in this modern era.

Māori Freehold Land is considered to hold two values, an economic value and a cultural value. The economic interest in Māori land is, like general land, an economic asset that may be used, and if considered appropriate sold, however, unlike general land, there are significant

16 McKerchar, C., Bowers, S., Heta, C., Signal, L., & Matoe, L. (2015). Enhancing Māori food security using traditional kai. Global Health Promotion, 22(3), 15–24. https://doi.org/10.1177/1757975914543573 17 Ministry for the Environment. (2015). New Zealand’s Environmental Reporting Series: Environment Aotearoa. Page 75. Retrieved from: http://www.mfe.govt.nz/publications/environmental-reporting/environment-aotearoa-2015 18 Supra. n 5. 19 Māori Land Court. (2017). Māori Land Court Website. Retrieved from: https://www.maorilandcourt.govt.nz/

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restrictions on the sale, lease or mortgaging of land. What also may differ are the values around how the land is managed, whilst recognising and providing for the association of its owners (whanau, hapū, iwi) with the land. This association or cultural interest, can be in whole or in part with Māori land and referred to/revered as a taonga tuku iho of special significance to Māori passed from generation to generation.20 All of these elements of Te Ao Māori provide positioning and context and feed into behaviours, values and decision making for Māori.

During our technical engagement discussions there were several comments around the basis or the grounding for climate change policy in New Zealand, particularly in the te Ao Māori context. Particular comments around applying a te Ao Māori centric approach from the outset when addressing enduring and all-encompassing issues such as climate change would serve Māori more appropriately and is far more likely to produce better outcomes for Māori.21

4.3.3 Kaitiakitanga and response to Climate Change

There is enough research and interview data recorded in a number of reports over the previous decades,22 to gain a reasonable understanding of how Māori might view climate change in relation to Te Ao Māori. Based on this research addressing climate change can be seen as being aligned with general principles of kaitiakitanga and on this basis there is a view that Māori are supporters of climate change policy that strengthens and regulates our response to climate change. From

20 Supra. n 7. 21 Hemi, M. Kaitiaki o Te Ara Miraka, Miraka. Technical engagement discussion. 1 March 2019, Putaruru. 22 See the following papers: The Law Commission. (2001). Study paper 9: Māori custom and values in New Zealand Law. Wellington, New Zealand. Retrieved from: https://www.lawcom.govt.nz/sites/default/files/projectAvailableFormats/NZLC%20SP9.pdf Packman, D., Ponter, D. & Tutua-Nathan, T. (2001) Climate change working paper: Māori issues. Wellington, New Zealand: Climate Change Office. Harmsworth, G. (2010). SLMACC Māori land and climate change project. [Presentation slides]. Harmsworth, G. (2005). Report on the incorporation of traditional values/tikanga into contemporary Māori business organisation and process. Retrieved from: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.452.7226&rep=rep1&type=pdf Ministry of Agriculture and Forestry. (2007). Emissions trading and Māori (Fact sheet).

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this a conclusion can be drawn that imposing targets and restrictions on emissions through pricing is a fair and necessary element of protecting te Tai Ao.

This does however need to be within context and acknowledge any limitations or barriers that present for Māori, in working through the implementation of policy changes.

One technical paper reviewed detailed that Māori landowners interviewed as part of the project indicated:

• A desire for the Government to hold firm to its ETS policy platform • The need for any shift on domestic policy to clarify or resolve any uncertainty

for Māori and investors, to avoid driving them elsewhere to wherever policy certainty is more assured.

• A need to strive for binding targets by all developed and developing countries on the international stage. Particularly for the benefit of reducing risks that may hinder new investment in the uptake of new technologies.

• The unique characteristics of Māori land under Te Ture Whenua Act (e.g., collectivity) mean Government policy and initiatives should be specifically tailored to a different process and timeframe in order for Māori business to equitably engage and take up opportunities.23

Māori have clearly prioritised and taken action to be both involved and show leadership in the climate change arena. Being engaged with and forming a response to the effects, impacts and economic risks and opportunities that climate change represents is a key priority for Māori. The Climate Change Iwi Leaders Group was established in 2018 and provides a collective voice and forum for iwi on climate issues. Individual iwi are also developing their own climate strategies to ensure preparedness and alignment with their intergenerational perspectives. Ngāi Tahu’s ‘He Rautaki Mō Te Huringa o te Āhuarangi Climate Change Strategy’, clearly sets their tribal direction and strategy to incorporate both climate change mitigation, action and

23 Harmsworth G., Tahi, M., Insley K., (2010). Climate change business opportunities for Māori land and Māori organisations, Sustainable Land Management Mitigation and Adaptation to Climate Change (SLMACC). Ministry of Agriculture and Forestry; Wellington. At page vi.

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adaptation into their future decision making, investment and development for the good of their environment, their people, and Aotearoa.24

A further detailed analysis of Tainui and Te Arawa waka iwi management plans and how a number of these address issues related to climate change and their views of use of natural resources within their established strategies is attached as Appendix B to this report.

Further to the individual iwi strategies for climate change, substantial research on Māori responsiveness to effects and impacts of climate change have been undertaken, most notably the two National Science Challenges; Deep South and Resilience to Nature’s Challenges. It is noted that there are research projects that explore the effects and impacts on Māori communities and the economic risks and opportunities for Māori business/commercial activities.

These kaitiakitanga perspectives have a broader approach towards responding to climate change rather than specifically focusing on reducing emissions.

The application of fundamental values within kaitiakitanga and opportunity to practice tikanga, are key to maintaining and fulfilling the role of kaitiaki. The practice of tikanga (in land use) is addressed further within the context of climate change and tikanga within this report.

The ability for kaitiaki to make their own decisions around what land practices and uses to which land is put, is a key element of tino rangatiratanga and the primary method of putting values into practice:

“This entails having the power to give effect to these values within a place - for example, having the power to guide land management practices according to relational values that maintain or enhance the mauri of the land, rivers, and coastal areas affected by those practices. Leaders that have the power to give effect to these values within a place, and act to do so, ultimately build the mana and dignity of all those that form part of the human and non-human community in

24 Rūnanga o Ngāi Tahu. (2018). Te Tāhū o te Whāriki Anchoring the World: He Rautaki mō te Huringa o te Āhuarangi Climate Change Strategy (Final draft). Retrieved from: https://ngaitahu.iwi.nz/wp-content/uploads/2018/11/Ngai-Tahu-Climate-Change-Strategy.pdf

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a place. Unfortunately, the process of colonization has limited the ability of Māori and, in particular, their leadership, to give effect to their relational values.”25

4.3.4 Statutory Influence on Kaitiakitanga and Māori Land Management

In discussing the potential effects and impacts of any policy arising from ICCC’s investigation, many of the interviewees shared both the difficulties, limitations and constraints of being kaitiaki and the application of kaitiakitanga, as well as managing their own resources, specifically land and geothermal, through statutory measures.

There are a number of legislative and statutory measures that influence (control and constrain) the ability of tangata whenua to be kaitiaki, and similarly the ability to manage their own resource, specifically land. We have focused on two of these that particularly influence Māori land and responsiveness.

4.3.4.1 Resource Management Act 1991

The Resource Management Act 1991 defines kaitiakitanga as meaning the exercise of guardianship by the tangata whenua of an area in accordance with tikanga Māori in relation to natural and physical resources; and includes the ethic of stewardship, and empowers it under section 7(a) as a matter of national importance. Additionally, within section 6(e) of the Act, it recognises that the relationship that Māori have with their ancestral lands and other taonga regardless of whether they are now in private ownership.

4.3.4.2 Te Ture Whenua Māori Act 1993

Although we have defined Māori within the context of this report and our analysis, we also need to define Māori land as it is relevant within the context of both the agricultural analysis and the energy analysis. This involves identifying the differences between land ownership and the nuances of these that change the way land is able to be used, and the way and speed with which any changes are likely to be made.

25 Reid, J., Barr, T. & Lambert, S. (2013). Indigenous sustainability indicators for Māori farming and fishing enterprises: A theoretical framework. At page 4. Retrieved from: http://www.nzdashboard.org.nz/uploads/2/3/7/3/23730248/13_06_indigenous_sustainability_indicators_for_maori_farming_and_fishing_enterprises_reid_final.pdf

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Although Māori land includes individually or collectively owned general land, many Māori are working on or with land and making decisions around land that is owned under Te Ture Whenua Māori (Māori Land Act) 1993. This act defines the types of ownership structures26 that can govern/own Māori land. These entities are defined under the act as:

Table 2: Types of Māori Land

Types of Māori Land

Ahuwhenua Trust designed to manage blocks of multiple owned Māori land and are the most common structure used by Māori landowners.

Māori Incorporation a body corporate with perpetual succession and with powers which, in form and basic structure, are similar to the joint stock company.

Whenua Topu Trusts these trusts are similar to the Ahu Whenua trust in that its structure is designed to manage the entirety or major proportion of a tribal estate. It differs in one aspect however, in that the individual’s land-owning interests are not maintained.

Whānau Trusts trusts used by whānau to halt the fragmentation of share interests. The Whānau Trust holds the interests in the land and additional members are added to the list of owners without receiving individual interests

27 Further, the challenges that such land ownership sometimes presents is not insignificant. More on how these challenges present in the context of the policy options under consideration is detailed later in this report.

26 Journeaux, P., Kingi, T. & West, G. (2017). Mitigating greenhouse gas emissions on Māori farms, an NZAGRC Project: End of project report. Retrieved from: https://www.nzagrc.org.nz/user/file/1592/Maori%20GHG%20Final%20Report.pdf 27 Supra. n 26 at page 11.

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4.4 Directly Affected Parties – Māori Interests in Agriculture

The interests that Māori hold within the agricultural industry are not insignificant. Overall the Māori share of primary assets is upwards of $13 billion (including forestry and fisheries).28 Within national level agricultural interests this is significant. As at 2014 the following interests owned by Māori are:

• 40 percent of forestry land • 30 percent of lamb production • 12 percent of beef and sheep units • 10 percent of dairy production • 10 percent of kiwifruit29

Figure 3: Māori interests in major land uses

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28 Ministry of Business, Innovation and Employment & KPMG. (2017). Māori economy investor guide. At page 43. Retrieved from: https://www.mbie.govt.nz/info-services/infrastructure-growth/maori-economic-development/documents-image-library/maori-economy-investor-guide.pdf 29Hapi, R. (2014). Growing food with our own hands. BERL. Retrieved from: http://berl.co.nz/economic-insights/economic-development/maori-economy/growing-food-with-our-own-hands/ 30 Statistics New Zealand (2018). Change in use of land for Māori Primary Production. Retrieved from: http://archive.stats.govt.nz/browse_for_stats/environment/environmental-reporting-series/environmental-indicators/Home/Land/maori-land-use-for-primary-production.aspx

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The amount of land in use within the agricultural industry is detailed, as illustrated in Figure 3.31 Clearly the impact and growth of the industry is integral to the development and advancement of Māori.

4.5 Directly Affected Parties – Māori Interests in Renewable Electricity

Māori interests in renewable and more sustainable energy are varied, from 100% Māori owned geothermal process heat and electricity wholesalers (Tūwharetoa ki Kawerau), geothermal power plant and milk process heat suppliers as well as hydrogen energy research (Tuaropaki), partnerships in bio-energy (Ngāi Tahu Forest Estates) as well as smaller scale solar supply to marae, schools and rural communities around the country (Waikato-Tainui, Ōmāio). Renewable energy is something that fits well with Māori values of kaitiakitanga and provides the basis for Māori to step up the value-chains.32 Many iwi, trusts and incorporations are incorporating renewable energy within their sustainability plans for marae and other owned infrastructure as well as seeing this as a key part of their investment strategies and development and environmental management plans.

31 Ibid. 32 Insley, C.K. (2014). Energy (renewable) and Maori development: Investment strategy. [Powerpoint slides]. Retrieved from: http://www.windenergy.org.nz/store/doc/2014NZWEC_ChrisInsley_Keynote.pdf

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PART 2: AGRICULTURAL EMISSIONS

5. Agricultural Emissions Policy

5.1 ICCC Agriculture Policy Approach

The policy approach that has been applied by the ICCC for the agricultural workstream considers the following:

• Pricing or Motivating Policies- this includes any options that resulted in an explicit or implicit price being applied to agricultural emissions. Either within the ETS, through levies or other pricing mechanisms or rules.

• Enabling Policies- this includes considering policy options or measures that would be used to support or as an alternative to pricing measures. Education, incentives and grants are examples of some of the options that fall within these options.

Figure 4: Climate Change Policy Framework

As a result of a number of these policy discussions, land use and land utilisation has been the subject of significant discussion, particularly where Māori and Māori land is concerned.

5.1.1 Pricing or Proxy Pricing Measures

Pricing and rule based measures focus primarily on the impact that these changes will have on land use and development. These policies are intended to challenge the status quo for a

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current farm operation and ideally result in a farmer changing practices to reduce emissions or changing land use to a lower emission land use. It is with this end goal in mind we have considered the impacts that these likely policies may have on Māori and whether there are any particular elements of the policy that might be adjusted to help reduce these impacts. If this was not possible then we considered what options there might be through supporting or enabling policies that might mitigate the impacts through another pathway. The policy options proposed and under consideration by the ICCC are outlined in detail within Appendix C of this report.

5.1.2 Enabling Measures

These policy measures were identified early on as being able to help support any areas or particular groups that may be adversely or unfairly disadvantaged by the proposed motivating or pricing policies. These have been particularly considered within a Māori context and as specific tools that might help to create equity where there may be pre-existing factors that also contribute to unfair and disproportionate impacts for Māori. The issues or impacts identified within the following analysis are reflected within the recommendations section, which clearly indicates how enabling policies can help to right any imbalance that may occur due to any particular element of the proposed pricing or transition policies.

5.2 Which Agricultural Emissions?

The ICCC have been asked to provide evidence and analysis on agricultural methane and nitrous oxide emissions. This include methane and nitrous oxide emissions from livestock and nitrous oxide emissions from fertiliser. This approach is detailed further within the ICCC Agriculture Workstream Report33.

33 Interim Climate Change Committee. (2019) Action on Agriculture Emissions.

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5.3 Policy Considerations (Key Interventions)

The four primary policy options that have been considered within the ICCC investigation include:

1. Mandatory farm plans with prescribed good farming practices 2. Limits on emissions (with farm plans as a support tool) 3. The Emissions Trading Scheme (with farm plans as a support tool) 4. An emissions levy/rebate scheme (with farm plans as a support tool)

These options are described in section 6 of the ICCC report “Action on Agriculture emissions.”

5.3.1 Option 1: Mandatory Farm Plans (with prescribed good farming practices)

The ICCC indicates that this option would further build on the role of a farm plan as a practical operating plan that lays out how a farmer will address particular risks on their farm. They indicate that every farmer would be required to have a farm plan and outline how they would meet a series of good management practices, some of which could be compulsory. The plan would then be audited to ensure that it meets certain standards and that the plan is being implemented.34

5.3.2 Option 2: Limits on Emissions (with farm plans as a support tool)

An option that has been considered is expecting farmers to reduce their emissions to within certain limits. This system is similarly used in some areas to meet water quality needs. These limits would need to be set specifically for each farm. Collectively every farms’ limit would need to be within the limits or targets set for the industry. 35 The way that these limits might be set has also been the subject of considerable investigation, with each of these having potential impacts for some more than others. Per hectare, per tonne, per stock unit or others have all been considered with each posing their own unique challenges and advantages.

34 Ibid. at section 6. 35 Ibid.

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5.3.3 Option 3: Emissions Trading Scheme (with farm plans as a support tool)

Emissions trading schemes work by putting a cap or limit on the total emissions. According to the ICCC a number of units equivalent to the cap is allocated to businesses that emit through a combination of auctions and free allocation. These businesses are required to surrender 1 unit for every tonne of emissions.36

This allows a farmer to reduce emissions to reduce their costs or liability through the scheme or alternatively purchase more units or use their freely allocated units. This creates a limited market and emissions price.

5.3.4 Option 4: Emissions Levy/Rebate Scheme (farm plans as support tool)

An alternative proposed to the emissions trading schemes is to price emissions using a levy/rebate scheme. The levy is still linked to the ETS through linking of the emissions price being generated through the ETS. The primary important difference is that it would not require farmers to trade units. This approach is consistent with the synthetic greenhouse gas levy. In a levy/rebate scheme, depending how free allocation is distributed, some farmers would pay for their emissions while others would receive a rebate.37

5.3.5 On-Farm Mitigation Options - Ability to Respond to Price on Emissions

There was considerable discussion throughout this investigation around the options that are actually available to farmers to reduce their emissions, given the desire to price emissions to change farm practice or behaviours.

36 Ibid. 37 Ibid.

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The Biological Emissions Reference Group previously commissioned a range of modelling studies to explore what farmers can do now to reduce emissions on farm.38 There are five broad ways of reducing emissions:

• Reducing stocking rates while improving animal performance • De-intensifying production and reducing inputs • Using fertiliser more efficiently • Using low emissions feeds • Better manure management.

In total, these mitigation options could reduce emissions by up to 10%. There is further discussion in the ICCC final report39 around these options for on farm reductions and future mitigation technologies and solutions that are imminent. These future options are still hoped to offer a silver bullet but until these arrive the above emission reduction options are still expected to provide a way for farmers to change their farm practices as a result of emissions pricing. Part of this process has considered whether there are any particular barriers around utilising these mitigation measures on farm, that are unique to Māori.

5.4 Review of Interconnected Issues

From the outset a number of issues need to be highlighted, that influenced and informed the way in which the proposed effects, impacts, opportunities and solutions have been considered and reviewed. This analysis is attached as Appendix D.

5.5 Analysis of Proposed Key Outcomes and Interventions

Direct comparison and critique has been undertaken of the potential effects, impacts and economic risks of the four policy pricing options detailed above. This has produced the

38 Reisinger et al. (2017). On-farm options to reduce agricultural GHG emissions in New Zealand. New Zealand Greenhouse Gas Research Centre; and Reisinger et al. (2018). Future options to reduce biological GHG emissions on-farm: critical assumptions and national-scale impact. New Zealand Greenhouse Gas Research Centre. 39 Supra. n 33 at Chapter 4.

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following matrix which considers each option through the lens of the various types of land ownership and related effects.

Table 4: Options Analysis

Option 1 - Mandatory Good Management Practices

Option 2 - Greenhouse Gas Emission Limits and Farm Environmental Management Plans

Māori Lands Returned - Considered there should be no disproportionate impacts to Māori farmers.

Māori Lands Returned - For those lands that are currently used for agriculture, there should be no disproportionate impacts.

General Land Holdings- It is considered that land used for agriculture is intended for agriculture. Proposed that there should be no disproportionate impacts on Māori in comparison to non-Māori farmers.

General Land Holdings - It is considered that land used for agriculture is intended for agriculture. Proposed that there should be no disproportionate impacts on Māori in comparison to non-Māori farmers.

During option design of the method of allocation will need to be considered to avoid any disproportionate impact related to the method of allocation of emissions within any limit or limitations on future utilisation in agriculture (ie avoid grandparenting and include methods to ensure allocation reaches Māori)

TTWMA Lands- Potential for disproportionate impact on landowners as the uptake of policy may be slower than other operating farms.

TTWMA Lands - Majority of landholdings are ‘as is’ and yet to be converted or used for any form of productive activity (incl agriculture)

During option design of the method of allocation will need to be considered to avoid any disproportionate impact related to the method of allocation of emissions within any limit or limitations on future utilisation in agriculture (ie avoid

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grandparenting and include methods to ensure allocation reaches Māori)

TTWMA Lands- Potential for disproportionate impact on landowners as the uptake of policy may be slower than other operating farms.

Option 3 – ETS at Farm Level and Farm Environmental Management Plans

Option 4 - Greenhouse Gas Emissions Levy and Farm Environmental Management Plans



TTWMA Lands - Potential for disproportionate impact on landowners as the uptake of policy will be slower than other operating farms

TTWMA Lands - Potential for disproportionate impact on landowners as the uptake of policy will be slower than other operating farms.

TTWMA Lands - Majority of landholdings are ‘as is’ and yet to be converted or used for any form of productive activity (incl agriculture).

Detailed design of the free allocation method will need to be considered to avoid any disproportionate impact related to access to free allocation or limitations on future utilisation in agriculture (ie avoid grandparenting and include methods to ensure allocation reaches Māori).

Conversely some land holdings will be eligible for a credit depending on final method of allocation.

TTWMA Lands - Majority of landholdings are ‘as is’ and yet to be converted or used for any form of productive activity (incl agriculture).

Detailed design of the free allocation method will need to be considered to avoid any disproportionate impact related to access to free allocation or limitations on future utilisation in agriculture (ie avoid grandparenting and include methods to ensure allocation reaches Māori).

Conversely some land holdings will be eligible for a credit depending on final method of allocation.

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This option has been considered as preferable for farmers as does not require trading as per the ETS option.

In considering these pricing options, only a couple of policy specific issues arose with regard to Māori issues. In essence, any policies developed to achieve the proposed goal of reducing agricultural emissions, would have similar outcomes, both for the general population and farmers, as for Māori. This being, that putting an implicit or explicit price on emissions will make emitting more costly and encourage either change in farm practices that reduce emissions, change to alternative land uses, or continue as is and pay.

It has been identified that the resulting changes in land use and practice may however disproportionately impact Māori and Māori land owners for a variety of reasons. These disproportionate impacts are not in relation to the specific detail of the policies themselves necessarily, but based on historical issues around land ownership and these compounding further due to policy changes. Essentially, concerns are around existing inequities becoming further entrenched due to the introduction of new policies that may impact landholders. The specific policy options considered did not, when compared against each other, proffer an option that had any markedly less or any markedly greater impact for Māori than another. Any obvious differences in the impacts were primarily in relation to the form of land ownership which proffered additional challenges, as detailed in the matrix above.

The primary issue to address is how the method of assessing ‘allocation’ in the context of a limit or rule based policy or ‘free allocation’ in the context of a price based policy is to be resolved within the design process and the need to adopt or avoid certain methods to protect Māori. It will be of critical importance that grandparenting is avoided as an allocation or free allocation method and that in the detailed design of any method of free allocation, particularly land based free allocation, that Maori land that is un or under developed is eligible to receive free allocation. Alternatively government could consider ringfencing some free allocation for later entrants to the industry have been identified as ways to ensure no disproportionate impacts result for Māori. These issues are addressed and discussed further within this reports analysis in Appendix D and also within Chapters 7, 8 and 9 of the ICCC report.40

The more relevant resulting issues for Māori vary across the spectrum from potential treaty breaches and further alienation of land, impacting mana whenua and their ability to practice

40 Supra. n 33 at Chapters 7, 8 and 9.

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kaitiakitanga, to disproportionately impacting Māori employment and therefore training opportunities, further impacting areas of society where poverty is an issue. Māori tend to be overrepresented within these groups. These will be considered further below.

5.6 Identified Issues and Impacts for Māori

These issues are explored in greater detail with the full review and analysis and research references outlined in Appendix D of this report. The key issues that have arisen, that impact Māori alone or disproportionately are summarised below.

5.6.1 Governance and Decision-Making

Governance and decision-making may be further challenged by proposed policy changes and timeframes. The findings from this investigation clearly indicate that Māori land holdings and ownership structures and the challenges associated with these structures, alongside the collective nature of the land holdings, and complexities of values based decision making, result in lengthier decision making overall. These pre-existing challenges mean that timeframes developed for the general agricultural community may not serve these collectives well. Timelines must be developed to reflect or take account of these added complexities for Māori land owners.

5.6.2 Land Use Changes

The resulting land use changes may compromise the Māori workforce with greater socio economic risks for Māori. These changes in land use are intended and likely to result in response to the proposed policy. The resulting changes in types, locations and availability of employment could be more likely to impact Māori disproportionately due to demographics and locations more reliant on the agricultural workforce. The likelihood of this being a considerably greater risk for Māori is due to the research indicating that current skills and training providers, alongside extension services, are not serving Māori well. Course content and structure are not fit for purpose for Māori resulting in low levels of engagement. This may have a large impact on Māori who will need to retrain or update their skillsets in line with the employment shifts around land use changes. Meeting these needs will be critical to reducing this impact for Māori.

5.6.3 Farm Practice and Land Management Changes

Farm practice and land management changes may be harder to achieve and are more likely to result in decreased profitability for Māori. The analysis indicates that the mitigation options

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available for farmers may pose challenges for adoption by Māori. In addition to the challenges around decision making to support such changes, research undertaken for the ICCC indicated that land classes of 6, 7 and 8 were found to have lower profit margins when adopting mitigation practices on farm41. Due to the high number of land holdings in these classes held by Māori, this may result in a disproportionate impact for Māori.42 Education and innovative research in this area will be critical to achieving on farm mitigation.

5.6.4 Pricing Emissions

Pricing emissions based on current land uses and land classes may result in wins as well as losses for Māori land owners. Due to remaining unknowns around final allocation methods and calculation rationale, there are likely winners and losers within the Māori land ownership base. As there is a large amount of Māori land in undeveloped or unfarmed states, some Māori will face little financial risk from pricing obligations. Further this could have an impact in increasing such land valuations as the value of alternative land uses becomes clearer. Alternatively this may have a marginal decrease in value due to increasing limitations of traditionally profitable enterprises that are capable of being explored on the land.

Many land owners are further constrained due to restrictions on sale of land, borrowing and governance challenges under Te Ture Whenua Māori Act. These challenges for Māori farmers compound any already identified risks resulting for all farmers. The ability for Māori to alienate land as an exit strategy is not an option for many Māori landholdings, nor an acceptable option based on traditional connections with land and in many cases deep rooted historical journeys to regain ownership.

5.6.5 Allocation Options and contemporary Treaty claims

The purpose of free allocation is to ease the transition for emitters towards paying the full cost of their emissions whilst working towards reducing their on farm emissions.

The allocation models have some potential impacts for Māori. These could be both postive and negative depending on the final allocation methodology and design. The preferred model is a mixed method of allocation which poses reduced risk to Māori overall. Exposure to risk

41 Van Reenen, E. (2019). Draft report – GHG costs and benefits on different land classes: Prepared for the Interim Climate Change Committee. New Zealand: AgFirst. At page 9. 42 Nana, G. (2019). GHG costs and benefits on different land classes – supplementary for Māori and iwi land. New Zealand: BERL. At page 2.

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can be further reduced through ensuring that Maori are not disadvantaged in the detailed design of the free allocation method, including ensuring that un or underdeveloped Maori land is eligible to receive free allocation.

There needs to be considered inclusion of Māori in any further investigation into allocation, with a focus on ensuring that free allocation reaches Māori proportionately within any allocation modelling. This will need to be a key discussion point with Māori farmers/industry and owners of Māori landholdings.

Although the discussion and research around free allocation and allocation options indicates that this is not intended to create rights and interests nor establish a permanent right to emit, the associated perceptions around the use of the term “free allocation” may challenge this intent. Alongside this is the perception that allocation is helping to support emitters to continue emitting (albeit in the short term), which may further result in contest and challenge by Māori. Within the context of contemporary Treaty claims, the inclusion of Māori as Treaty Partners to avoid any perceived risks around rights and interests and in the true spirit of partnership would be appropriate.

5.7 Potential Opportunities for Māori

There are a number of opportunities resulting from these potential policy pathways. For Māori, the primary opportunity is to focus on alternative land use strategies, and to prioritise or refocus all efforts on being first to market within New Zealand and Internationally on a number of niche low carbon products.

There are a number of reports and studies that have been undertaken, that point to options that are likely to achieve high success rates and the methods that would be required to ensure success when working through the nuances of a Māori organisation or collective ownership.

A 2012 report produced by Manaaki Whenua Landcare “Climate change business opportunities for Māori land and Māori organisations”43 included an in depth study of opportunities as well as appetite for Māori around taking advantage of such opportunities. The findings indicated a prioritisation as follows:

• carbon-forestry sinks, followed by, • land-use change and land-use flexibility, • sustainable wood products energy and renewable energy,

43 Supra. n 23 at Page v.

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• energy efficiency, biodiversity and environmental services and the lowest, • nutrient use and budgets, measurement technologies, anaerobic digestion, methane,

and nitrous oxide abatement.

The reality that lower emitting land uses will now offer both financial incentives as well as avoid some ever increasing obligations will make these options more appealing for Māori and without being hamstrung by pre-existing debt, offer blank canvases or opportunity to explore some innovative solutions and land use opportunities moving forward.

5.7.1 Research, Programme Delivery, Development and Branding

The role that pan-Māori organisations will need to play in supporting the government and Māori industry to create and drive such significant change over the next decade, cannot be ignored. Their role in raising awareness across the industry will be an integral one and will support providers to reach those they need to.

Advocating the continuation of targeted Māori research will also be a key role, and should address deficits in the research landscape. These include evidence around mātauranga Māori and integration into low emission farm practices.

Further the prioritisation of Māori Agricultural Programmes, developed by Māori and for Māori could be prioritised through supporting policy or funding and provide opportunity for Māori to lead the development of the Māori agricultural economy.

Māori wanting to be part of the low emission New Zealand product branding story will also be key. If branding does not reflect or inappropriately reflects Māori values, then they will be less likely to want to adopt it and be part of this journey. Leading this narrative will allow Māori to influence and represent this story in a way that enhances and supports Māori perspectives.

Further this should include the role of supporting the development of assurance and branding initiatives to utilise the unrealised premium that could be attained from anything produced within a low emission environment.

6. Agriculture Emissions – Potential Interventions

Our research indicates that Māori in theory are in support of strengthening the government’s stance around climate policy. To ensure that risks identified for Māori are mitigated as far as reasonably possible, the following interventions should be considered.

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6.1 Enabling Success for Māori

In addition to financial successes resulting from land use, the following elements contribute to feelings of success from land utilisation. Keeping these front of mind when designing both motivating and enabling policy would greatly assist with creating Māori centric policy:

• Cultural Importance – guarding, protecting and retaining the land in the continuous ownership and control of the hapū;

• Physical Considerations – striking a balance between development, conservation and restoration of natural areas;

• Political Involvement – representing and protecting the interests of the hapū within external political settings to guard against external threats; and,

• Social Contribution – providing employment and funding community projects.

An argument can easily be made that some of these identified elements, if incorporated as outcomes for enabling measures, could make a number of the proposed policy options more appealing for Māori.

6.2 Specific Opportunities for Engagement

Some primary opportunities that could be highlighted through the engagement and or education and dissemination work undertaken within these work programmes include:

• Encouraging Māori to access research funding to support innovative research projects around agriculture and mātauranga Māori

• For Māori to lead projects utilising Vision Mātauranga Research funds, developing new products and services utilising mātauranga Māori for the benefit of Māori and to support New Zealand’s transition to a low carbon economy

• To collaborate across the agriculture sector to share knowledge • For new and emerging providers in the agricultural training and extension services

industry • For development of Māori specific training and extension programmes • To change the perspective and understanding around what is a “good use” or “fully

utilised” land, as the Māori perspective or Māori values around utilisation are not reflected in any tangible scale of utilisation based on economics

• To maximise and highlight the gains that can be achieved for Māori within companion measures

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• To encourage land owners to gain access to funding around education, increasing employment within new land uses and providing greater opportunity for whānau and hapū to return and commune with land through changing land uses

6.3 Pricing or Motivating Policy

When considering pricing policy and how to integrate agriculture smoothly into the resulting accounting system, the focus needs to be on pulling the lever for behavioural and practice change. In doing so, this considers the decision making context for Māori being motivated by non-price indicators as much as pricing for change.

• Māori need to be included in any further design and discussion around allocation methodology both as iwi and landowners, within the Treaty context and otherwise

• Consideration needs to be given around how to allocate to ensure that some “free allocation” reaches Māori. Avoiding grandparenting and ensuring that any Maori un or undeveloped land is eligible to receive free allocation or through ringfencing free allocation for later entrants to the market will assist with this

• Although a Treaty claim may result regardless of the strategy, seeking legal advice around treaty issues and potential claims, could enable policy adjustments to help to minimise these risks. It is highly advised that a set of preferred policy options are decided upon and then provided to Treaty specialists to ensure that the final decision and policy direction pursued by the Crown around pricing policies, are not deemed to be in breach of the Crown’s obligations under Te Tiriti o Waitangi

• Develop a robust, effective and ongoing engagement strategy with iwi and hapū decision makers as an essential element of the operations of the Climate Change Commission. A clear strategy and narrative needs to support engagement and the socialisation of the preferred policy approaches, particularly around allocation

6.4 Maximising Enabling Policies for Māori

There are a number of wrap around measures that can be provided within the suite of enabling policies to support and ensure a smoother transition and soften the impacts as the policy is implemented. Spending the time to focus on how to achieve these end results will transpose into greater equity and reduce policy impacts for Māori. Such enabling measures include:

• Prioritising grants for Māori in training and extension support for farms and farmers choosing to change their land use or farm practices

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• Prioritising funding for organisations that support Māori farms and farmers in training and extension support when choosing to change their land use or practices, with a focus on training developed by Māori for Māori

• Providing free training support, governance support and advice around how to make this transition smoothly for Māori organisations, particularly in the area of updating Iwi Management Plans and Strategic Documents for smaller and particularly unsettled iwi and hapū

• View enabling policy measures as real catalysts for change for Māori and create opportunities for increasing cultural connection to land, environmental stewardship and social development

• Undertake further research around mātauranga Māori and low emission farming methods to support and enhance other research currently being undertaken in this area44

• Provide funding to support research into the application of emerging research and findings for innovative projects or services integrating this knowledge

• Provide funding to support delivery or development of products and services utilising this knowledge

• The need to focus on increasing student throughput in these emerging areas of agriculture is essential, in addition to developing the current workforce to be prepared for the change

• Ensure targeted funding directed to support Māori education providers and agricultural extension services to make them accessible and more appealing to Māori needing to train or retrain in the industry

• Ensure targeted support for those rendered jobless due to changes in land use, particularly for upskilling

• Provide incentives for those employers who retain their staff through changes in land use, ie pay for training days etc

44 There are a number of current research projects under way in this space. Such as ‘Low emissions farm systems for the Māori sector’ which is designed to assist Māori farmers in New Zealand to improve their collective capacity to increase resource efficiency and farm productivity while lowering greenhouse gas (GHG) emissions.

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PART 3: TRANSITION TO 100% RENEWABLE ELECTRICTY AND

ENERGY

7. Renewable Electricity and Energy

7.1 ICCC Renewable Electricity and Energy Policy Approach

The New Zealand electricity system encompasses the entire process of generating, transmitting (through the system of large power pylons and lines that make up the national grid), distributing (through the lines that reduce the voltage to make it safe to use), and consuming electricity. But there are aspects of producing electricity that create greenhouse gas emissions.

In developing its policy response to transition New Zealand towards 100% renewable electricity the ICCC considered three goals, termed the energy trilemma. These three goals are:

• the objective of minimising emissions from electricity generation; • security of supply; and, • affordability for consumers.

It was acknowledged very early on by the ICCC that most of New Zealand’s electricity generation is already renewable, however it was identified that other sources of emissions, such as transport and process heat needed to be included as these had a positive impact of reducing emissions. It is in this context that there are two terms used in discussions and reporting on the ICCC’s investigation considering the transition to 100% renewable electricity. The two terms are:

• Renewable Electricity, and • Energy

As a result, the investigation of the ICCC has been extended to include both how a transition to 100% renewable electricity by 2035 could be achieved as well as the potential of electricity to reduce emissions in transport and process heat. Within this extended investigation, three futures were pursued by the ICCC. Those three futures are:

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Future 1 – Business as

Usual What happens in a

business as usual future?

Future 2 – 100%

Renewable Electricity What happens if New Zealand targets 100% renewable electricity?

Future 3 – Accelerated

Electrification45 What happens if New Zealand

targets accelerated electrification of transport

and process heat?

The key points from each scenario are explained further, however overall, in a Business as Usual scenario, the ICCC investigation modelled that New Zealand is currently on track to achieve about 93% renewable electricity by 2035. But pushing for the last few percent to 100% Renewable Electricity means the cost of reducing each tonne of emissions increases exponentially. To have more impact on emission reductions, Future 3 Accelerated Electrification seeks the use of electricity to fuel transport and process heat, which would reduce emissions considerably more every year, far greater than the movement to 100% renewables would achieve with the last few percentage of renewables modelled in Future 2. The above three futures are explained in detail within Section 3 of the ICCC report.46

7.2 Review of Proposed Key Outcomes - Identified Issues and impacts for

Māori

This investigation has explored and considered the actual and potential effects, impacts and economic risks and opportunities for Māori within the scope of reducing New Zealand emissions through renewable electricity. The review and analysis defined Māori as:

• Treaty Partners • Kaitiaki • Māori in Industry • Māori as General Population

There are aspects of the proposed policy that may have actual effects and impacts on Māori, as well as actual economic risks and opportunities. These issues are explored in greater detail

45 The electricity system is leveraged to deliver emissions reductions via fuel switching in transport and process heat. 46 Supra. n 3 at Section 3.

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with the full review and analysis in Appendix E of this report. These key issues that have arisen, that impact Māori alone or disproportionately are summarised below:

7.2.1 Actual/Potential Impact – The Continued Use of Natural Resources

New Zealand’s resource management regime, to allow access, use, and development of natural resources, has had a long-standing adverse effect on Māori (iwi, hapū, whanau and kaitiaki). Similarly, the regime disproportionately impacts on Māori unless iwi are able to achieve redress through Treaty of Waitangi settlement legislation or formation of agreements (eg Te Mana Whakahono ā Rohe) with local authorities or other decision-making authorities. In all three modelled futures, no additional restrictions were placed on major hydro systems (over and above existing consent conditions relating to minimum flow) and wind generation increased, and with modelled futures 2 and 3 is the direction to increase renewable electricity use and production in geothermal energy supply, wind and solar. The availability of, and access to these renewable energy sources is key to the transition. A large number of new projects are required to achieve this end goal.47 The key issues identified are:

• Resource Management Act 1991 (and other legislation and statutory processes) does not work in favour of Māori (values and perspectives). Considerations and decisions do not work in favour of Māori and kaitiakitanga. Any regime that may streamline or ensure renewable generation activities (and associated infrastructure) are provided in a timely way, may have an actual effect and impact on Māori.

• There may be effects and impacts on Māori ancestral land, water, sites, waahi tapu, taonga in the pursuit of renewable generation.

• Treaty of Waitangi claims, Treaty settlement legislation, and Māori participation in freshwater management frameworks have expressed a desire to increase the minimum flow in water bodies. This is particularly so for those that are main stem water bodies and have hydro-electricity infrastructure located within. Retaining 60% hydro and continuance/renewal of existing conditions in hydro resource consents may have an actual effect and impact for Māori.

• An important aspect of the Treaty of Waitangi for Māori is the guarantee of tino rangatiratanga or the unqualified exercise of chieftainship over lands and all their

47 ICCC Secretariat. (2018). Energy Futures Presentation, Slide 28.

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property/treasures, which includes the ability to control the use of resources. Any policy that provides certainty to resource users could be viewed by Māori as proprietary rights being granted.

• The Māori perspective received in interviews advised that a centralised (macro-level) approach to electricity generation and provision in New Zealand that reinforces preferential user access to natural resources and investment into infrastructure (includes renewals of existing and development of new).

7.2.2 Potential Economic Risks/Opportunities – Renewable Generation

There are a number of Māori organisations that have interests and/or are active renewable resource use generators, primarily geothermal resource use. These organisations have relationship/joint venture type agreements with electricity generators. McLoughlin, Campbell and Ussher (2010) outline that Māori have a key role in many New Zealand geothermal projects through their ownership of land that provides access to geothermal resources in New Zealand.48 Additionally, for many Māori, interests in geothermal resources are not commercial but stem from a desire to protect the taonga. In this regard, there are a number of projects that are conducted in accordance with the practices of Māori trusts or organisations that either receive royalties for hosting a power developer, or have full development and ownership.49 In Future 2 and 3, there will need to be an increase in geothermal use, an improved access to New Zealand’s wind resource and use of solar for electricity generation. It has been identified that a considerable amount of land that would be suitable for use in these types of renewable projects as well as a large number of resource access points, are located within Māori land holdings, and/or located in landscapes of value to Māori. The key issues identified in relationship to these development futures are:

• governance and decision making need to be timely and responsive to risks and opportunities

o land use and/or land use change o consensus decision making

• the ability or delays in gaining access or consent if there are multiple Māori trusts engaged, and the weighing up of values around resource use

48 McLoughlin, K., Campbell, A., & Ussher, G. (2010). The Nga Awa Purua Geothermal Project, Rotokawa, New Zealand. Proceedings World Geothermal Congress 2010, 25-29. 49 Ibid.

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• potential for a number of projects across the resource management spectrum necessitating participation and partnership

Relationship Basis- Genuine v Investor It is important to note the difference between building relationships based on the need for investment contributions from Māori, or for their support with a consent process, rather than to build a genuine enduring relationship. Although all of these forms or reasons for relationships will exist, the genuine commitment to involving Māori in these conversations from the outset will set a solid foundation for these relationships to be honest, transparent and mutually beneficial. The questions and discussions being held around resource development are not short term. They require solid relationships that enable ongoing discussion and input at multiple touchpoints across years of a project and over decades. These relationships will be key to creating and implementing a truly robust and smooth transition to 100% renewable energy. These relationships represent a true Treaty partnership which is more likely to succeed in its objectives. Within their submission on the Productivity Commission’s Low-Emissions Economy – Draft Report, Te Rūnanga o Ngāi Tahu submitted:

“there is greater potential to get things right when viewing economic benefits, and associated co-benefits, from an indigenous perspective, through the lens of

Treaty partnership”50

7.2.3 Actual/Potential Impacts – Price Increases and Access to Low Emission Technologies

Māori are over represented in a number of categories which contribute to socio economic standing. Although this takes a deficit perspective, this is required to adequately asses any negative impacts for Māori as a result of the proposed transition. At the average population level, Māori are:

• Much less likely to have completed secondary school; • Much more likely to be unemployed;

50 Te Rūnanga o Ngāi Tahu. (2017). Submission to Productivity Commission on Low Emissions Economy Issues Paper. At page 7.

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• More likely to be on a low income; • Much more likely to be receiving income support; • More likely to be in a household with no telecommunications or internet; • More likely to not have access to a motor vehicle; and • Much more likely to be renting, and living in a crowded house. Māori are also younger

on average than non-Māori (Statistics New Zealand, (2013a)).51

The disproportionately high number of Māori that exist within the lower socio-economic groups in New Zealand means that Māori may be disproportionately impacted by policies resulting in electricity price increases.

The Martin Jenkins52 report commissioned by the ICCC, states that overall the modelling and subsequent analysis undertaken indicates that large increases in retail electricity prices are not expected, unless we achieve 100% renewable electricity generation. Any increases that are expected however may disproportionately impact those in low income households, of which Māori have been identified as being over-represented within.53

Furthermore, their analysis indicated that Māori households comprise a high percentage of rural New Zealand households (especially in the North Island, and those in the two lowest income groups and also comprise a high percentage of large (five or more person) households. The research also indicates that Māori households spend more on electricity than non-Māori households54.

"Furthermore, MBIE’s Quarterly Survey of Domestic Electricity Prices (QSDEP) shows that electricity prices in rural areas are generally higher than the national weighted-

average price, due to higher transmission and distribution charges in those areas. We also note that rural households are more exposed to other likely impacts from the transition, such as rising petrol prices in the move towards electrification and are less

51 Meade, R. (2017). Incidence of Emissions Charges and Other Climate Change Policies: Implications for Māori Cost of Living Research Report. Cognitus Advisory Services Limited. Retrieved from: https://www.mfe.govt.nz/sites/default/files/media/Climate%20Change/emissions-charges-and-other-climate-change-polices.pdf At page 10. 52 Field, M, (2019). Modelling retail electricity prices under high renewables and low emissions scenarios: An analysis of what the Interim Climate Change Committee's modelling means for retail electricity prices in 2035. New Zealand: Martin Jenkins and Associates. At page 2. 53 Ibid. at page 3-4. 54 Ibid. at page 4.

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able to take advantage of the opportunities to mitigate against these other risks. These impacts compound for rural Māori and leave them further exposed."55

In the context of home/self-generation of electricity, it has been identified that the disparity in household incomes for Māori and other related socio-economic issues/influences, may mean that incentivisation is not a viable option for many Māori. Those most vulnerable and most impacted by rising costs, may in turn have more pressure from price rises and not be in a position to take advantage of these types of technologies that will help to minimise pricing impacts.

Further work could be undertaken in this space to investigate cultural barriers or self-identification of eligibility versus state identification of poverty. Particularly working to develop a Māori perspective within energy poverty discussions.

8. Transition to Renewables: Potential Interventions

8.1 Use of Natural Resources

Issues and impacts have been identified in relation to:

• Māori Ownership/Proprietary Rights of Natural Resources

• Maintaining 60% Threshold on Hydropower

• Impacts on Māori ancestral land, water, sites, waahi tapu, taonga

These primarily rest within the Treaty of Waitangi rights and interest discussions. With those rights confirmed through the Waitangi Tribunal it is difficult to imagine that the Crown will not need to consider and address these rights within any climate policy that results. This should consider management and allocation or use and access of geo-thermal or hydro resources. Ways to enable this are:


• Seek partnerships ahead of strategy, engage and involve Māori at the outset

55 Ibid. at page 35.

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• Consider relevant outcomes around other resource ownership, use and governance models- be prepared and develop policy to work around and through any issues identified, to prevent inequity and minimise chance of Treaty breach


• Work within existing policy directives around resource protection to meet and provide for Māori values

8.2 Māori Participation in Transitioning to 100% Renewable Electricity

Issues and impacts have been identified in relation to Issue 2: Māori Participation in Transitioning to 100% Renewable Electricity. A number of the ways to minimise the impacts of limited participation are also identified as Treaty solutions above. Working towards full and unencumbered participation of Māori within planning and working towards the nation’s transition, should be the goal. Ways to enable this are:


• Seek partnerships ahead of strategy, engage and involve Māori at the outset

• Consider governance models and management structures that enable participatory involvement rather than consultation alone


• Consider funding specific Māori roles within projects and strategy, to overcome key man fatigue and support the growth and development of future participation in the industry

8.3 Socio-Economic Impacts for Māori

Issues and impacts have been identified in relation to Issue 3: Socio-Economic Impacts for Māori. These are primarily relevant for individual Māori and whānau as well as kaitiaki. Working towards an equitable environment for uptake of incentivisation, and cost minimising strategies, is essential to a smooth and just transition. Ways to enable this are:

• Education programmes around electricity conservation in homes – an “oldie” but an effective “goodie”

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• Work to develop incentivisation that has no financial barrier to uptake – full subsidisation on a sliding scale based on income/current other eligibilities

• Also work to utilise any system of identifying those who may fall through the cracks

• Develop incentives for landlords to provide tenants with home generation technologies but prevent rent increases on this basis – landlords of low income housing having access to some incentives available to low income home owners

• Ensure these incentives for home generation and EV’s are available to marae

• Develop targeted funding for retraining in identified emerging industries

• Develop pathways from school, into these industries (funded training, wānanga)

• Fund Māori providers to develop programmes targeted for uptake by Māori

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9. Conclusion

This report provides an analysis of identified issues resulting from proposed policy options and strategies to transition New Zealand to a low emissions economy.

This is a complex and wicked problem that every developed nation is likely to, or should be facing. Indigenous nations around the world will also be embarking on addressing these issues due to the values and norms that they traditionally have with their environment and the world around them.

Te Ao Māori worldviews similarly see the need to work to address the problem of climate change and stabilise the climate for future generations. Māori are in a unique position in New Zealand compared with many other indigenous nations, and are poised to be leaders in climate change action. The New Zealand government has the ability to lead and drive this change, supporting and enabling Māori to do the same.

New Zealand can continue to be a leader in innovative policy making and do this in a way that achieves equity for all New Zealanders and supports Māori where necessary, to succeed. Developing policy on this basis will ensure that the Crown delivers on its Treaty obligations and creates an enduring partnership through climate change policy. Working to acknowledge rights and interests in an equitable way, outside of the Treaty claim process, would be a first and is a wero (challenge) laid down for the Crown to face head on.

Key elements of this through both work programmes will be building and rebuilding relationships, particularly around use and access to natural resources. Working as investment partners for the development of these resources is one element of this, but operating in the spirit of partnership outside of economic gain, will be the optimal.

The role of enabling policies as being the key to balancing inequities through the pricing of agricultural emissions or through impacts of transitioning to an increased use of renewable electricity, cannot be understated. The report contains multiple ways in which these companion policies or measures can be tweaked to take full advantage of this power to even the field, particularly when targeting Māori in areas of overrepresentation in socio-economic status or land ownership/class.

It is hoped that further research is undertaken in specific areas indicated within this report. This will assist the government and Māori to feel empowered and armed with the tools they need to ensure Māori and all of New Zealand can succeed together in achieving a just transition to a low emissions economy.

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Appendix A - Methodology

This report is not intended to be an academic piece around Māori perspectives on climate change or emissions. It does include a review of relevant information, investigation, data and evidence that have been identified as relevant to the brief and to help support policy making decisions or discussions for the ICCC. It also includes the identification of key and pressing issues that need to be addressed within climate policy decision making and the work of the ICCC and any subsequent Climate Change Commission.

A key element of our review is a focus on identifying opportunities that arise as a result of the issue identification, for both Māori and the ICCC to leverage. It also proposes solutions wherever possible to resolving these issues or ideally, pre-emption of issues before they arise.

DESKTOP DATA/INFORMATION REVIEW

The primary method of data gathering and analysis has resulted from a desktop review of the information provided by the ICCC and relevant datasets accessible online. This included review of a number of government databases and mapping tools, and it is hoped, will also include modelling produced for the ICCC when it is available.

Key Documents

In the initial review of the ICCC investigation, key documents were used to identify the potential effects, impacts, and the economic risks and opportunities for Māori.

The investigation into agricultural emissions, agricultural land management, and agricultural activities lead Whetu to key technical documents prepared for the Ministry for the Environment and the Ministry for Primary Industries, in relation to Māori. These documents are:

• Climate change business opportunities for Māori land and Māori organisations – November 201256

• Māori Impacts from the Emission Trading Scheme – Detailed Analysis and Conclusions57

56 Supra. n 43. 57 Insley, C. K., & Meade, R. (2008). Māori impacts from the Emissions Trading Scheme: Detailed analysis and conclusions. Ministry for the Environment. https://www.mfe.govt.nz/sites/default/files/maori-impacts-analysis-conclusions-jan08.pdf

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• Productivity Commission’s Report on a Low Emission Economy- August 201858

Within these reports there are a number of identified issues for Māori. These issues have been applied and considered within the analysis. It is considered appropriate that Whetu Consultancy Group acknowledges these issues as identified in these reports and the role that these reports had in informing the issues analysis. For the investigation into renewable electricity and low-emission energy (includes infrastructure), there were a number of documents reviewed from a technical perspective, however the following report was helpful particularly around impacts for Māori households and individuals:

• Incidence of Emissions Charges and Other Climate Change Policies: Implications for Māori Cost of Living Research Report, prepared in 2017.59

Technical Discussions

We have also spent considerable time working to understand the perspectives of the ICCC Secretariat and the data and evidence they are working with. We have sought to gain a real understanding of the issues and the policy concepts being proposed to enable us to identify any foreseeable issues for Māori within a complex problem. This has often relied upon discussions with key individuals with technical knowledge, industry understanding and on the ground application for Māori.

The writers were supported by a group of 23 technical Māori experts from across New Zealand that provided discussions, comments, advice and input into the research phase and the reports analysis. Their skillsets in agriculture, energy, Māori land, climate change and science, were invaluable support for this project.

Ground Truthing

The key issues identified in this report and the solutions proffered were discussed during further technical discussions over the course of the review. Seeking perspectives and input from Māori occurred during the formal Māori engagement that was undertaken

58 New Zealand Productivity Commission. (2018). Low-emissions economy: Final report. Retrieved from www.productivity.govt.nz/low-emissions 59 Supra. n 51.

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independently. This has enabled any resulting interventions to merge with and feed into the ICCC’s processes, with the policy discussions adapting accordingly where necessary.

Workshops

Workshops were held by the ICCC Secretariat and members of the committee all over the country inviting participants to contribute and comment on the investigation throughout the duration.

• Electricity Forum: 2/8/18 • Banks Forum: 8/8/18 • Forestry Forum: 14/8/18 • Agriculture Forum: 24/8/18 • Electricity field trip to Auckland: 3 & 4/10/18 • Electricity field trip to Invercargill: 24/10/18 • Electricity field trip to Northland: 5 & 6/11/18 • DairyNZ Climate Change Ambassadors: 7/11/18 • Electricity field trip to Nelson/Marlborough: 16 & 17/11/18 • Workshop with Sheep and Beef Farmers (Wairarapa): 16/11/18 • Electricity field trip to Christchurch: 19/11/18 • Workshop with Arable Farmers and Foundation for Arable Research: 22/11/18 • Electricity field trip to Kawerau: 28 & 29/11/18 • Workshop with Beef+Lamb Environmental Reference Group: 6/12/18 • Electricity field trip to New Plymouth: 18/1/19 • Electricity field trip to New Plymouth: 11/2/19 • Electricity Workshops: 13 & 14 Feb 19 • Agriculture Workshop: 18/2/19 • Rural workshops: 20, 22, 25, 27 & 28 Feb 19 • Maori Engagement Hui in Wellington: 21/2/19 • Cross-Sector Forum: 14/3/19 • Maori engagement hui with Te Arawa and farmers: 19/3/19 • Maori engagement hui with Northland farmers: 21/3/19 • Maori Engagement Hui in Wellington: 25/3/19

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LIMITATIONS TO THE REPORT

Whetu has been provided with background information within this context to the extent that it is available to the ICCC Secretariat, and this information covers policy options being considered as part of ICCC’s work programme. At the time of writing this report this process was relatively fluid and this report has therefore tried to work around and within these constraints.

Timeframe

The timeframe within which this work was undertaken was extremely limited, to align with the prescribed timeframe of the ICCC. Due to this process, this report indicates areas where further work, research or evidence gathering is required, to either ground truth assumptions, identify the extent of an issue, or to validate.

Review of Key Outcomes and Interventions

The direction to Whetu is to:

• review the ICCC’s key outcomes in relation to energy and climate change, and analysing the effect, impact and economic risks and opportunities for Māori,

• review the ICCC’s key outcomes and interventions relating to agriculture and climate change, and analysing the effect, impact and economic risks and opportunities for Māori

Distinction between Engagement and Policy Analysis Delivery

In addition to Whetu being engaged to undertake this policy review and advisory work, the ICCC contracted an independent group to undertake the design and delivery of a full engagement strategy for Māori. This strategy was developed and implemented by the independent group and the ICCC.

Whetu maintains that engagement is a critical element of ensuring that the work of the ICCC and subsequent Climate Change Commission is being informed and influenced by Māori. This report cannot and should not be considered in isolation of this engagement or substitute any ongoing engagement around the work of the permanent Climate Change Commission once it is appointed.

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The timing of our engagement within the ICCC work programme has also meant that a large amount of the policy related discussions, issues and ideas were and are still under development. Due to this, our analysis is in some areas, based on moving and fluid concepts that are not fully defined and this has at times led to some assumptions being necessary and some information gaps.

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Appendix B - Review of Iwi Management Plans and Climate Issues

Ngāti Kea Ngāti Tuara

Ngāti Kea Ngāti Tuara Iwi Environmental Management Plan 201660 Climate change is not directly mentioned in the plan.

Renewable Energy

Renewable energy is mentioned in relation to creating self-sustaining papakāinga with on-site renewable energy generation.61 Geothermal energy production is not specifically discussed, however the Ngāti Kea Ngāti Tuara express the desire to have active involvement in the management of the geothermal resource, which would include its use as a renewable energy source.62

Water rights/Preferential Use of Water

Hydro dams are associated with loss of geothermal sites63 and declining fish stocks.64

Soils

The key issue relating to soil in the plan is that land use has not always considered land capability and as a result soil erosion rates have increased. To combat this, an holistic, integrated management approach is suggested.65

Māori Farming

Māori farming is not specifically mentioned however, the plan supports aspirations of Ngāti Kea Ngāti Tuara for land uses which are sustainable and protect the quality of the environment.66

60 George, K. (2016). Ngāti Kea Ngāti Tuara Iwi Environmental Management Plan. Retrieved from: https://www.boprc.govt.nz/media/564287/ngati-kea-ngati-tuara-iwi-environmental-management-plan.pdf 61 Ibid. at page 32. 62 Ibid. 63 Ibid. at page 38. 64 Ibid. at page 34. 65 Ibid. at page 31. 66 Ibid. at page 32.

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Hauraki Whaia te Mahere Taiao a Hauraki March 200467

Climate Change

The plan identifies Climate Change as a key issue in the domain of Ranginui. Hauraki aim to be informed and able to participate in indigenous discussion internationally and with the government on the impacts of climate change68. Hauraki also supports policies which encourage sustainable technologies such as public transport.69

Renewable Energy

The plan focuses on energy efficiency70 without much mention of renewable energy sources.

Soils

Soil issues identified by the plan include the productive capacity of whenua, contaminants onto land and erosion and sedimentation. Hauraki sees soil erosion and poor quality soils as a problem and aims to reduce erosion and sedimentation problems in the region.71


Hauraki’s objectives linking to the use of water involve the promotion of sustainability and the restoration of historic fisheries and water qualities.72 The plan does not mention the use of water for hydro power.

Māori Farming

No specific information

67 Hauraki Māori Trust Board. (2004). Whaia te Mahere Taiao a Hauraki: Hauraki Iwi Environmental Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/WRC/Community/Iwi/Hauraki-Iwi-EMP-March-2004.pdf 68 Ibid. at page 16. 69 Ibid. at page 17. 70 Ibid. at page 16-17. 71 Ibid. at page 15. 72 Ibid. at page 20.

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Ngāti Maniapoto Ko Tā Maniapoto Mahere Taiao: Maniapoto Environmental Management Plan 201673

Climate Change

Maniapoto recognises climate change as a serious issue which will have real impacts on their rohe.74 They recognise a wide range of impacts ranging from coastal flooding to loss of food gathering areas to adverse impacts on ecosystems. There are three objectives associated with climate change:

13.2.1.1 Maniapoto are informed on the causes and effects of climate change and are prepared for the resulting impacts.

13.3.3 To minimise and avoid further adverse effects of natural hazards associated with climate change.

13.13.3 To reduce greenhouse gas emissions to the level recommended by the IPCC or better.75

Renewable Energy

The plan encourages design of subdivisions to make use of renewable energy and transport options in order to support their climate change policies.76 The plan also supports the researching of clean, renewable energy, although this is subject to the mauri of waahi tapū or significant maunga being preserved and not causing disruption to the run of a river using dams.77

Soils

Maniapoto recognise soil as important to sustaining the physical, spiritual and cultural wellbeing of its people.78 Objectives and policies designed to effectively manage the mauri

73 Maniapoto Māori Trust Board. (2016). Ko tā Maniapoto Mahere Taiao: Maniapoto Environmental Management Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/WRC/Community/Iwi/Maniapoto-Environmental-Management-Plan.pdf 74 Ibid. at page 60. 75 Ibid. at page 61. 76 Ibid. 77 Ibid. at page 95. 78 Ibid. at page 84.

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of land and soils by reducing nutrient loss, leaching and runoff to water bodies, and manage land and soil to minimise erosion and degradation of soil are outlined within the plan.79


The issues, objectives and policies of the plan are centred around improving the water quality and mauri of water bodies as part of a reciprocal relationship between the people of Maniapoto and the water. There is no specific mention of hydropower apart from as above in the Renewable Energy section.

Māori Farming

No specific information

Maniapoto Priorities for the Restoration of the Waipā River Catchment 201480

Climate Change

Not mentioned in the plan

Renewable Energy

Not mentioned in detail, however the Wharekiri Stream in identified as a “power generation opportunity”.81

Soils

Soil conservation is a major theme of the plan. One of the overarching goals in the Waipā Catchment Plan is that soils are stable and productive, with erosion and associated sedimentation reduced.82 The Maniapoto priorities work to achieving this goal through methods including farmer education and identification of areas where erosion is occurring at a high rate and earthworks are needed to stabilise the area.83 Soil is also discussed in relation

79 Ibid. at page 86. 80Maniapoto Māori Trust Board. (2014). Maniapoto Priorities for the Restoration of the Waipā River Catchment. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/Maniapoto%20Priorities%20for%20the%20Waipa%20River.pdf 81 Ibid. at page 106. 82 Ibid. at page 26. 83 Ibid. at page 54.

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to a large amount of soil being moved during a river diversion which disturbed an urupā and uncovered kōiwi.84


Water quality in the Waipā river is seen as one of the biggest pressures in the region. Protection and improvement of water quality is a priority and the plan has multiple responses which aim to achieve this. Environmental research, review of regulations, implementation of development guidelines and the elimination of sewage inputs are all listed as responses which will improve water quality.85

Māori Farming

The plan involves providing technical advice to farmers in relation to improving the health of the Waipā river catchment through soil conservation and water quality improvements. The plan identifies Māori farms which are on Māori Multiple Owned Land Blocks and plans to share and mentor the governors and owners in best practice.86

He Mahere Ika: Maniapoto Upper Waipā River Fisheries Plan 201587 The plan focuses on the management of fish stock in the upper Waipā without referencing most of our areas of interest. Water is seen as spiritual entity was well as a source of kai which must be protected by the mana whenua.

Ngāti Te Wehi

Motakotako Marae Hapu Management Plan 2008 (Draft)88 This plan is focused around consultation of the iwi/hapū in various circumstances, it does not give detail on any of our areas of interest however does acknowledge that the mauri of water ways has been damaged, which in turn damages the health of the people.

84 Ibid. at page 114. 85 Ibid. at page 51. 86 Ibid. at page 45. 87 Maniapoto. (2015). He Mahere Ika: Maniapoto Upper Waipā River Fisheries Plan 2015. Retrieved from: https://www.waikatoregion.govt.nz/assets/WRC/Community/Iwi/Maniapoto-Fish-Plan.pdf 88 Motakotako. (2008). Motakotako Marae Hapu Management Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/Motakotako_Marae_Hapu_Management_Plan.pdf

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Ngāti Hikairo Ngāti Hikairo Iwi Management Plan – Freshwater August 2005 – August 201589 This plan focuses on managing the use of freshwater in the Kāwhia area and does not mention many of our areas of interest. Restoring the mauri of water bodies is seen as a priority as well as improving water quality, more effective management of water take and restoring the habitats for native fish species.

Te Tahuanui: Ngāti Hikairo Heritage Management Plan 201090 This plan focuses on heritage management and does not mention many of our areas of interest. Water bodies are discussed as culturally significant places to Māori which have been degraded in the past and require protection.

Ngāti Porou

Ngāti Porou Ki Hauraki Marine and coastal area plan 201591 The plan does not mention climate change, renewable energy, soil or Māori farming.


Ngāti Porou have benchmarks for water quality, freshwater should be good enough to drink and salt water should be of a quality where safe and edible kaimoana can be collected from.92

Raukawa

Raukawa Fisheries Plan 201093 Climate change and Māori farming are not mentioned in the plan.

89 Ngāti Hikairo. (2015). Ngāti Hikairo Iwi Management Plan – Freshwater. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/Ngati%20Hikairo.pdf 90 Ngāti Hikairo. (2010). Ngāti Hikairo Heritage Management Plan. Retrieved from: http://www.ngatihikairo.iwi.nz/wp-content/uploads/2012/10/Te-Tahuanui-Ngati-Hikairo-Heritage-Management-Plan-2010.pdf 91 Ngāti Porou & Hauraki Māori Trust Board. (2015). Marine and coastal area plan 12/09/2015. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/Ngati%20Porou%20ki%20Hauraki%20plan.pdf 92 Ibid. at page 29. 93Watene-Rawiri, E. & Fitzgerald, J. (2012). Raukawa Fisheries Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/15805/2380761%20Raukawa%20Fisheries%20Plan.pdf

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Renewable Energy

Raukawa states the Waikato hydro dam network impacts on fisheries, they acknowledge that this is not always negative as dams prevent koi carp migrating to the Upper Waikato. Raukawa have an objective to take practical steps to mitigate the impacts of the hydro system on fisheries.94 The loss of land and sites of significance as a result of the hydro lakes is also discussed.95

The generation of geothermal power is also discussed, especially the practice of waste water from the treatment plant being discharged to the Waikato river, a practice Raukawa does not support in any way as it goes against tikanga.96

Soils

Soils are not mentioned in detail, sedimentation is identified as an issue for native fish breeding.


Water is mostly mentioned in the context of fish habitats. Vegetation clearance, wetland drainage, waterway modification, artificial barriers, damming and diversion and declining water quality are water issues all linked to the destruction of fisheries. Raukawa aims to restore water bodies so they provide healthy habitats for sustainable fisheries.97

Te Rautaki Taiao A Raukawa: Raukawa Environmental Management Plan 201598

Climate Change

Raukawa acknowledge that there are a wide range of issues linked to climate change which are mainly due to a lack of understanding around the potential impacts climate change will have on the iwi99. The plan has a comprehensive list of potential actions people can take on the home/marae level to prepare for and reduce the effects of climate change, including

94 Ibid. at page 35. 95 Ibid. at page 5. 96 Ibid. at page 36. 97 Ibid. at page 30. 98Raukawa Māori Trust Board. (2015). Te Rautaki Taiao a Raukawa: Raukawa Environmental Management Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/Raukawa_Environmental_Management_Plan_2015.pdf 99 Ibid. at page 128-129.

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insulating homes, regulating energy use and using energy efficient transport100. The plan also includes a list of actions which the Raukawa Charitable Trust will take, including actions like securing research partners, considering options for sustainable farming and climate change readiness, sustainable corporate practices and afforestation advocacy101.

Renewable Energy

As part of their vision statement, Raukawa aims for marae and papakāinga with low environmental footprints which take advantage of renewable and low energy technology. Raukawa also aim to lead best practice in their marae and papakāinga for sustainability. The plan states that renewable energy technologies will be favoured in the marae, homes and places of work where possible102, but also acknowledge the difficulty some people have in affording these technologies103.

Soils

The plan states many soil issues which are a result of historic land use, including soil loss and compaction issues, adverse effects of significant land use change and soil contamination.104 The plan also lists issues associated with intensive dairy farming including buildup of substances in the soil through chemical and fertilizer use, impacts from animal waste and dairy waste products, land use not matching the soil profile, leading to erosion and urban development on high class soils in Cambridge.105 Raukawa’s objectives for soil include having the health of the land reflect their relationship with Papatūānuku, ensuring land use aligns with land capability and sustainable farming reduces the environmental footprint of farms.106


Hydro dams are recognised as being significant contributors to poor water quality107 with future micro-hydro projects having the potential to negatively impact water bodies.108

100 Ibid. at page 131-134. 101 Ibid. 102 Ibid. at page 129. 103 Ibid. at page 131. 104 Ibid. at page 74. 105 Ibid. 106 Ibid. at page 77. 107 Ibid. at page 58. 108 Ibid. at page 59-60.

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Māori Farming

Raukawa has been involved in agriculture since before the 1860 wars, they acknowledge the economic benefits farming has brought to their iwi alongside the negative environmental impacts. Raukawa fully endorses the Vision and Strategy for the Waikato and Waipā Rivers and strive to become environmentally conscious farmers and industry leaders.109 The plan also outlines the vision for farming under climate change, where iwi farming infrastructure is able to cope with increased volume and intensity of rainfall.110

Ngāti Tahu Ngāti Whaoa Rising Above the Mist – Te Aranga Ake I te Taimahatanga: Ngāti Tahu-Ngāti Whaoa Iwi Environmental Management Plan 2013111

Climate Change

The plan acknowledges the impacts climate change has on the iwi, as well as human contribution to climate change. There is a short-term goal for effective advocacy for equitable climate change policy, as well as a long-term goal for a stable climate for future generations with CO2 levels below 350 ppm.112 The idea of carbon farming is also explored as an income source once the technology becomes available.113

Renewable Energy

The plan lists communication with district councils for zoning of renewable energy developments such as wind farms as a potential action for the future. 114 The plan also describes the historical effects of the hydro dams along the Waikato river including flooding of food-gathering places, whare, pā, wāhi tapu and urupā, as well as destruction of geothermal sites which were used once in everyday life.115 Increased algal growth and loss

109 Ibid. at page 75. 110 Ibid. at page 129. 111Ngāti Tahu – Ngāti Whaoa. (n.d.) Rising above the mist – Te Aranga ake I te Taimahatanga: Ngāti Tahu – Ngāti Whaoa Iwi Environmental Management Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/2916942_Ngati_Tahu_-_Ngati_Whaoa_Iwi_Environmental_Management_Plan.pdf 112 Ibid. at page 89. 113 Ibid. 114 Ibid. at page 81. 115 Ibid. at page 26.

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of tuna populations is also linked to the hydro dams as they disrupt the natural flow of the water.116 Geothermal energy is also discussed with future ideas for the resource including uses best practice in geothermal energy generation, making energy generation as sustainable as possible and using geothermal energy for cultural and domestic uses.117

The iwi also have concerns about wind power projects which could impact the landscape and disturb wāhi tapu. They would also have concerns about any nuclear power developments in the region.118

Soils

The pressures identified by the plan relating to soil include cadmium build up, erosion as a result of raising and lowering of the Waikato river and soil compaction as a result of transitioning land use from pine to farming.119


The hydro dams are seen as the main negative contributor to decreased mauri of the Waikato river, alongside nutrient runoff which together contribute to declining kai in the region.120

Māori Farming

The plan outlines several goals for Māori farms which link to soil health, these include having environmental management plans in place, using best practice, planting more native trees, retiring less productive land to tree cover and focusing on productive land, excluding stock from waterways and having the land providing resources, income and wellbeing to iwi.121

116 Ibid. at page 35. 117 Ibid. at page 69. 118 Ibid. at page 77. 119 Ibid. 120 Ibid. at page 91-92. 121 Ibid. at page 81.

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Ngāti Tahinga Tahinga Environmental Management Plan (no date)122

Climate Change

Crop growth and harvest are mentioned as being affected by climate change,123 other than that the issue is not discussed in detail other than so state the objective on minimising the impacts of climate change.124

Soils

Matters of concern regarding soils are the contamination of soils affecting our ability to grown and store kai.125 The plan contains two soil objectives which state ancestral taonga must be actively protected from the impacts of development and whenua is used sustainably for present and future generations.126


Hydro dams are not mentioned in the plan, it focuses on water as a site of fisheries and as an important cultural element.127

Te Arawa Te Arawa River Iwi Trust – Fisheries Plan (no date)128 The plan focuses on fisheries management so does not discuss many of our areas of interest. It does discuss hydro dams as a cause of declining fish populations through being an artificial barrier to migrating species, as well as changing the flow characteristics of the river, impacting water quality.129

122 Nga Uri O Tahinga Trust. (n.d.) Tahinga Environmental Management Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/2386228%20Ngati%20Tahinga.pdf 123 Ibid. at page 13. 124 Ibid. at page 19. 125 Ibid. at page 17. 126 Ibid. at page 18. 127 Ibid. at page 15. 128 Te Arawa River Iwi Trust. (n.d.A). Te Arawa River Iwi Trust – Fisheries Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/Te_Arawa_River_Iwi_Trust_Fish_Plan.pdf 129 Ibid. at page 24.

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Te Arawa River Iwi Trust – Environmental Management Plan (no date)130 Climate change is not mentioned in the plan.

Renewable Energy

Nga Awa Purua Geothermal Power Station is celebrated as an example of working together for collective benefit.131 Onsite power generation using renewable energy sources is also encouraged under the plan to encourage sustainable land use.132

Soils

Historic land use is recognised as having negatively impacted on soil quality. Te Arawa iwi want to be involved by Waikato Regional Council in developing catchment management plans to ensure the mauri of land and soil can be protected.133


Hydro dams are discussed as a cause of declining fish stocks134 and as a disruption to geothermal sites and features.135

Māori Farming

Methods of minimising effects of land use on water quality involves exploring different farming philosophies such as permaculture or biological farming, as well as the sharing of knowledge between Māori farmers.136

130Te Arawa River Iwi Trust. (n.d.B). Te Arawa River Iwi Trust – Environmental Management Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/Te_Arawa_River_Iwi_Trust_Environmental_Management_Plan_2015.pdf 131 Ibid. at page 31. 132 Ibid. at page 42. 133 Ibid. 134 Ibid. at page 46. 135 Ibid. at page 44. 136 Ibid. at page 42.

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Ngāti Tūwharetoa Ngāti Tūwharetoa Environmental Iwi Management Plan 2003137 Climate change, renewable energy and Māori farming are not mentioned in detail.

Soils

The plan identifies soil contamination by poorly managed landfills as a key issues relating to land.138 Policies for improved soil quality include, encouraging sustainable land use systems, supporting proposals that seek to protect and enhance soil quality, advocacy for culturally important areas at risk of erosion and flooding and protecting important landscape features from inappropriate use and development.139


The unnatural control of lake levels is a key issue for Ngāti Tūwharetoa in relation to water rights.140 The iwi want representation on various stakeholder groups that use Lake Taupo-nui-ā-Tia such as hydro-power companies141 and monitoring reports from the hydro-power142 companies in order to help promote the health of the water.

Waikato-Tainui Waikato-Tainui Environmental Plan, Tai Tumu, Tai Pari, Tai Ao 2013143

Climate Change

Human induced climate change is acknowledged as a significant issue with many unknown consequences. Waikato-Tainui’s priority is avoiding any disruption to indigenous ecosystems

137Ngāti Tūwharetoa Māori Trust Board. (2003). Ngātu Tūwharetoa Environmental Iwi Management Plan. Retrieved from: https://www.waikatoregion.govt.nz/assets/PageFiles/21886/Ngati_Tuwharetoa_Iwi_Environmental__Management_Plan_2003.pdf 138 Ibid. at page 24. 139 Ibid. 140 Ibid. at page 22. 141 Ibid. at page 19. 142 Ibid. at page 23. 143 Waikato-Tainui te Kauhanganui Incorperated. (2013). Tai tumu Tai pari Tai ao: Waikato-Tainui Environmental Plan. Retrieved from: https://issuu.com/waikatotainui/docs/tai_tumu__tai_pari__tai_ao_plan_eng/2?ff&e=11394340/67136303

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and Waikato-Tainui’s cultural or spiritual beliefs and practices.144 The Waikato region is identified as being prone to flooding which will exacerbate the impacts of climate change.145 The plan’s key action for climate change is ensuring its causes and effects are understood and prepared for in the Waikato-Tainui rohe.146 The plan also includes more general actions against natural hazards such as ensuring the negative impacts from natural hazards are avoided, rather than mitigated and new structures that requires the use of natural hazard protection are not supported.147

Renewable Energy

In general Waikato-Tainui do not support any form on energy generation if it is not sustainable and renewable, or if it has adverse effects on the social, cultural, spiritual or environmental effects.148

Soils

The plan identifies some key soil issues in the region including accumulation of pesticide and fertilizer chemicals in the soil, soil erosion and degradation of soil through unsustainable land practices.149 There are multiple policies in the plan which work towards restoring soil health and returning both its mauri and life supporting capacity. These include adopting best practice and managing soils to reduce run-off, erosion and leaching150 as well as protect waterways from sediments and pollutants,151 effectively managing contaminated land,152 promoting integrated catchment management and recognising and providing for the special relationship Waikato-Tainui has with the land.153


Waikato-Tainui do not support the use of containment hydro-electric dams and do not see them as sustainable or appropriate due to their adverse environmental, cultural, spiritual and social effects.154

144 Ibid. at page 133. 145 Ibid. at page 134. 146 Ibid. at page 138. 147 Ibid. at page 137. 148 Ibid. at page 232. 149 Ibid. at page 176-177. 150 Ibid. at page 180. 151 Ibid. at page 181. 152 Ibid. 153 Ibid. at page 183. 154 Ibid. at page 232.

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Māori Farming

While farming is discussed, it is not related to farming by Māori or on Māori land.

Vision and Strategy for the Waikato River 2008155 The first priority of Vision and Strategy is the restoration and protection of the health and wellbeing of the Waikato river.156 The plan does not make specific mention of renewable energy sources, soils, climate change or Māori farming.

155 Waikato River Authority. (2008). Vision and Strategy for the Waikato River. Retrieved from: https://waikatoriver.org.nz/wp-content/uploads/2011/07/Vision-and-Strategy.pdf 156 Ibid. at page 6.

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Appendix C - Proposed Policy Iteration

Policy options proposed and under consideration by the ICCC have included:

Farm level Policy Option Processor level Policy Options Mandatory farm plans with prescribed Good Management Practice

GHG emission limits NZ ETS NZ ETS Dual cap ETS Dual Cap ETS Methane quota system, and nitrous oxide included in the NZ ETS

Emissions levy Emissions Levy Project crediting

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Enabling policy/measures under consideration by the ICCC include: Companion Policies 1 Information, education, training and extension

• Providing information, training and support for farmers to take up opportunities that reduce emissions.

• Particularly opportunities that also increase profitability

2 Grants, funding and investment

• Accessing funds to adopt technologies or practices that reduce emissions. Includes funding for on-farm mitigation, land use diversification, or infrastructure investment to help build supply chains for lower emission products.

3 Research and Development

• Bring forward new innovations to reduce emissions. • Continued investment in R&D to unlock abatement potential in agriculture.

4 Assurance, branding and marketing

• Incentivises farmers to reduce emissions to gain a premium for their product

5 Aligning policies

• Removing barriers and maximising synergies in other policy areas. • Ensuring other policies/laws are not creating barriers or inadvertently

incentivising actions that increase emissions, and where possible maximising synergies.

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Appendix D - Agriculture Emissions: Supplementary Information

Review of Interconnected Issues for Agriculture

Refer section 5.4 in report

Existing Policy Initiatives for Māori Land and Māori Agriculture

When considering changes to the policy environment that influences the Māori economy, the current policy environment and previous initiatives need to be considered within this setting. How will any proposed policy changes interact with existing policy, will they be complementary or incompatible? Although policy needs to be responsive to changing needs, where possible, it should also interact and align with current initiatives to enhance understanding and improve cohesiveness and ease of application for users. Ideally there should not be new policy directives that clearly compromise the success or ability to achieve other government policy or priorities.

Recent government policy has focused on growing the Māori economy and maximising land use. Some specific policies include:

The Whenua Māori Fund: Which is a scheme run by Te Puni Kōkiri which provides funding to Māori freehold land owners in order to aid them in making decisions about the future of their land. Proposals are considered which seek to bring unused land into use and to remove the barriers to productive use.157

The Ministry for Primary Industries Māori Agribusiness: The Pathway to Increased Productivity programme aids Māori land owners in overcoming the unique challenges of collective ownership. The programme aims to increase the productivity of Māori land in the agriculture, horticulture, forestry and seafood sectors.158

157 Te Puni Kōkiri. (2016). Introduction to the Whenua Māori Fund. Retrieved from: https://www.tpk.govt.nz/docs/whenua/tpk-whenua-maori-fund-brochure-2016.pdf 158 Ministry for Primary Industries. (2018). Māori Agribusiness. Retrieved from: https://www.mpi.govt.nz/funding-and-programmes/maori-in-the-primary-industries/maori-agribusiness/

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A new scheme in 2019, the Provincial Growth Fund will allocate NZ$100 million to the development of Māori-owned land. Up to 80% of Māori-owned land is described as being ‘underproductive’ and this fund aims to realise the potential of this land.159

Land Management Support

Agencies such as the Māori Land Court and Te Tumu Paeroa support Māori land owners. Te Tumu Paeroa support in the management (protecting and enhancing) of Māori lands, through providing services such as governance, coordinating a large number of owners, productivity and expenses.160 Currently there is over 100,000 hectares of Māori land managed through Te Tumu Paeroa (7% of Māori land), much of it in remote parts of New Zealand. The Māori Land Court supports landowners through making legal decisions on the ownership of Māori land, and succession as well as providing information and resources where needed.

These ownership structures sometimes are viewed to have some constraints, and these should be considered in the context of Māori land ownership, decision making, land use changes and more. Although there is the ability to operate as a more commercially oriented structure (such as Ahu Whenua Trusts and Māori Incorporations) there are still a number of barriers that need to be considered when compared with operating a farm operation or gaining consent for access rights on general land, or for non-Māori owned land. The way these elements impact decision-making on Māori land is what makes these processes different from general individuals or organisational land owners in at least three important ways:

• restrictions on alienation restrict the use of land assets from being used as collateral, limiting owners’ access to credit;

• non-economic benefits, such as access to traditional medicines, hunting, providing social welfare, and maintaining a cultural connection to the land, are sources of value, in addition to economic returns;

159Arden, J. & Jones, S. (2019). $100 million investment to support Māori landowners and drive regional growth. Beehive.co.nz: New Zealand. Retrieved from: https://www.beehive.govt.nz/release/100-million-investment-support-m%C4%81ori-landowners-and-drive-regional-growth 160 Te Tumu Paeroa. (n.d.). Connecting people with their land. Retrieved from: https://www.tetumupaeroa.co.nz/

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• long-term, intergenerational impacts receive consideration in most decisions. These differences all stem from cultural values applied to resource allocation decisions161

The reason this matters in the context of this research and identification of key issues, is because they significantly change the responsiveness of Māori landowners to new strategic opportunities by affecting the process of decision-making. Thus the ability to uptake new policy initiatives is challenged considerably, both in an agricultural context and also in the context of strategies for movement towards renewable energy, particularly where partnerships are sought.

Considering how a policy might impact on an individual or collectives ability to make their own decisions around the use of their land will in itself fundamentally compromise their role as kaitiaki and their Treaty right to exercise tino rangatiratanga over their lands.

Known/Existing Issues for Māori in climate change response

There have been multiple reports referred to during the preparation of this report and many have indicated similar issues that will be relevant for Māori within the context of climate and policy development around climate change.

Issues and impacts for Māori as land owners in the context of climate change mitigation and strategic planning included:

• Governance and Decision-Making • Resources and Employment (including Skills and Training) • Farm Practice and Land Management • Land Use, including Capability and Potential of Māori Land

These are explored further within the analysis but it is important that the solutions and opportunities that have been outlined within any reports undertaken are acknowledged as being used as a basis for this report and should also be for other technical reports prepared. It is intended that this report will build on these issues that were identified to either support Māori responses to climate change and/or their participation within MPI’s Māori agricultural

161 Funk, J. (2009). Carbon farming on Māori land: Do governance structures matter? MOTU. Page 8. Retrieved from: https://motu.nz/our-work/environment-and-resources/lurnz/carbon-farming-on-maori-land-do-governance-structures-matter/

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prototype programme162, as well as the findings around improving use of Māori land outlined in Te Puni Kokiri’s Te Ture Whenua Panel Report.163

Māori Landholding Ownership and Management Distinguishing Effects of Māori Landholding Ownership and Management

Regardless of the manner in which land is owned, held or managed, the above known or existing issues for Māori often exist.

Types of Māori Landholdings

Landholdings under General Freehold (transferred or acquired)

Many Māori have general landholdings either individually or held as collectives. This general land does not in itself have any limitations that other farmers do not also face. It can be used as collateral and farmed in the same way. The only marked difference is where it may also be in traditional land areas or connected through whakapapa to the Māori owner. It may indeed have been acquired for that very reason. This then brings with it issues around connectedness and the ability or not for the owner to consider selling the land as part of their exit strategy or business model. Any policies however that result in land owners anywhere needing to sell their land is unpalatable.

Landholdings returned to Māori through settlement

In addition to the above detailed land holdings, there exists a unique form of land holding for Waikato-Tainui, that was developed through Waikato-Tainui’s Raupatu Settlement. This vests a large amount of land returned to the iwi, into the name of Pōtatau Te Wherowhero title, and is held in trust for the iwi, with trustees appointed by the leader of the Kīngitanga, around decision making. This land too is inalienable, but the settlement act specifically notes that

162 Oakden, J. & Wehipeihana, N. (2014). Māori agribusiness prototypes projects: Final evaluation. Ministry for Primary Industries. Retrieved from: https://www.mpi.govt.nz/dmsdocument/4966/send 163 Te Puni Kōkiri. (2014). Te Ture Whenua Māori Act 1993 Review Panel report. Retrieved from: https://www.tpk.govt.nz/en/a-matou-mohiotanga/land/te-ture-whenua-maori-act-1993-review-panel-report

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nothing within Te Ture Whenua Māori Act shall apply to land registered under Pōtatau Te Wherowhero title.164

Further there is a substantial amount of land that has been returned to trusts and iwi post settlement governance entities that is under long term leases, with little control in the hands of the land owners. This needs to be considered in the context of point of obligation and further where Māori are motivated to make change on their land, but are hamstrung in being able to do so or to influence leaseholders to change land practices.

Landholdings administrated under Te Ture Whenua Māori Act

Although there have been a number of reviews of Te Ture Whenua Māori Act, and numerous versions of its intended replacement legislation, the Te Ture Whenua Māori Act 1993 remains in force. Comments here focus on the actual impacts resulting from proposed policy changes that may impact Māori with land held under TTWMA.

Identifying the differences between land ownership and the nuances of these that change the way land is able to be used, and the way and speed with which these changes are likely to be made, is key to considering any barriers and subsequent impact.

A report commissioned165 by the ICCC details most recent data regarding Māori land ownerships and locations, size and governance structures. The report clearly helps to contextualise the unique characteristics surrounding Māori land ownership. With over one half of registered Māori land blocks not having governance structures in place, it is clear to see that change of land use on these blocks will indeed be challenging.

The ownership structures of Ahuwhenua Trusts, Māori Incorporations, Whenua Topu Trusts and Whānau Trusts each have some constraints, and these should be considered in the context of Māori land ownership, decision making, land use changes and more.166 Although there is the ability to operate as a more commercially oriented structure (such as Ahu Whenua Trusts and Māori Incorporations) there are still a number of barriers that need to be considered when compared with operating a farm operation or gaining consent for access

164 Waikato Raupatu Claims Settlement Act (1995) s 22. 165 Reid, A., Smiler, A., Nana, G. & Hurren, K. (2019). Education, training and extension services for Māori land

owners. New Zealand: BERL and FOMA. 166 Supra. n 25.

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rights on general land, or for non-Māori owned land. The way these elements impact decision-making on Māori land is what makes these processes different from general individuals or organisational land owners in at least three important ways:

• restrictions on alienation restrict the use of land assets from being used as collateral, limiting owners’ access to credit; Inability to borrow against collectively owned land from traditional (read lower interest) institutions, thereby limits uptake, choices for transitions, ability to take up new and emerging technologies.

• non-economic benefits, such as access to traditional medicines, hunting, providing social welfare, and maintaining a cultural connection to the land, are sources of value, in addition to economic returns; this foundational perspective and desire to retain ownership, derive non-economic value and connection to lands, makes decision making considerably more complex for Māori.

• long-term, intergenerational impacts receive consideration in most decisions. These differences all stem from cultural values applied to resource allocation decisions.167 It could be argued that both TTWMA and proposed climate change policy may in fact align with these perspectives in more ways than one.

• Further, acknowledgement of the spin off issues around frustrations with limitations of the act and related governance structures, resulting in often heated and emotional trustee meetings that are not conducive to timely, effective or focused decision making on major issues that may be required.168

The reason this matters in the context of this research and identification of key issues, is because they significantly change the responsiveness of Māori landowners to new strategic opportunities by affecting the process of decision-making.169 Thus the ability to uptake new policy initiatives is challenged considerably, both in an agricultural context and also in the context of geothermal, hydro or other resource development connected with Māori land. It does need to be acknowledged however, that for many larger iwi, land holdings are often general, and often with very effective governance and decision making in place. Further, land acquired by the iwi directly is not likely to be TTWM land and therefore some of the restrictions identified do not exist in these instances. Being able to borrow against such land is also not necessarily an issue where considerable wealth has been accrued and lenders are

167 Supra. n 161 at page 8. 168 Dell, K. M., (2017) Te Hokinga ki te Ūkaipō: Disrupted Māori Management Theory Harmonising Whānau Conflict in the Māori Land Trust, University of Auckland Management School Doctoral Thesis. Page 222. 169 Supra. n 25.

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willing and in fact knocking on their doors to lend. Smaller trusts and incorporations may be hit harder by these issues/barriers and their ability to mitigate or navigate their way through them is always more limited due to capital, resources and skillsets.

The unique characteristics of Māori land under Te Ture Whenua Act (e.g., collectivity) mean Government policy and initiatives should be specifically tailored to a different process and timeframe in order for Māori business to equitably engage and take up opportunities.170

Which agricultural emissions?

Refer section 5.6 in this report. Also refer to Chapter 7 of ICCC Agriculture Workstream Report.

The ICCC have been asked to provide evidence and analysis on agricultural methane and nitrous oxide emissions. This includes methane and nitrous oxide emissions from livestock and nitrous oxide emissions from fertiliser.

Ruminant Livestock Emissions – Methane and nitrous oxide

Methane and nitrous oxide have been clearly identified as the key gases to be considered within the context of the proposed motivating or pricing policies. This is explored further in the context of the proposed policy options.

Point of Obligation

The other biggest consideration within the application of the proposed policy, has been considered the point that the obligation will lie. The options essentially include at farm level, with the farmer being accountable or liable for any proposed pricing mechanism, and at processor level, where the processor would bear the burden of the farm emissions.

For nitrous oxide from fertiliser it was established by the ICCC that this is more easily and effectively managed at processor level as detailed above. For biological emissions however this has been considered to be more effective at farm level but will take some time to establish. Hence both farm and processor level obligation are part of the proposed policy options.

The primary considerations for deciding the point of obligation are:

• Ease of administration • Ease of understanding or implementation for farmers

170 Supra. n 23.

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• Costs, both for government and farmers in administering • Greatest likelihood of impact on emissions reductions

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Point of Obligation – Effects, Impact and Economic Risks and Opportunities for Māori

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In-depth Analysis of Effects, Impacts and Economic Risks and Opportunities for Māori

Refer section 5.6 in report

Actual Impact - Governance and Decision-Making may be further challenged by proposed policy changes and timeframes

Ownership Consensus

With significant amounts of land being returned as part of Treaty settlements, a large amount of land affected by agricultural policy, is being governed by Post Settlement Governance Entities (PSGE) on behalf of iwi/hapū. PSGE’s unlike other corporations are often steered by owner/shareholders or representative bodies who as a rule, are more engaged and influential in decision making, than would be the case with other mainstream organisations. Equally, due to larger sized representative and governance boards, decision making is often a lengthy and drawn out process, to account for multiple perspectives and influences within these structures. A lack of ownership consensus when considering decision making around key policy initiatives can result, and may also result in changes being delayed with increasing or compounding costs related to policy changes as a result.

Decision Making may be Compromised

The competing interests of economics versus values based decision making can often result in delays in committing to a decision and as a result risks parties getting further indebted or risking losing more economically when they prioritise values over finances. Finding ways to promote prioritising of financial stewardship for the benefit of those values systems is essential to increase better outcomes. Prioritising economics in decision making on the basis that without the financial wellbeing of an enterprise, there may be no employment, social or environmental gains possible as a result.

Overlaying collective values systems with individual perspectives within a decision making body, can often result in tensions. Equally, the multiple owners/entities in relation to certain

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blocks of land as well as absentee owners over time, add to complexities in decision making as collectives.171

Actual Impact - The resulting land use changes may compromise the Māori workforce with greater socio economic risks for Māori Changes to available workforce

The obvious changes for kaitiaki resulting from land use change may be the availability of skilled or experienced employees. These changes to the available workforce may pose challenges in an already struggling industry, to find good local employees with the skills needed and willingness to fulfil the job. For many managers and owners on farm, it may be that they too need to upskill and learn either a completely new field of farming or on farm practices to support their land use or practice change. Being able to teach new staff themselves may be a very real impediment, particularly through the transitional phases.172

171 Harmsworth, G. (2017). Unlocking the potential of Māori land: A kaupapa Māori approach to using and developing integrated knowledge, models and tools. [Presentation slides]. MPI Link Seminar, Wellington. Thursday 4th May 2017. Slide 10. Retrieved from: https://docplayer.net/59867105-Unlocking-the-potential-of-maori-land-a-kaupapa-maori-approach-to-using-and-developing-integrated-knowledge-models-and-tools.html 172 Dorner, Z., Djanibekov, U., Soliman, T., Stroombergen, A., Fleming, D., Cortés-Acosta, S. & Greemhalgh, S. (2018,). Land-use change as a mitigation for climate change: Report to the Biological Emissions Reference Group (Project No.18398). MOTU. Page 46.

HA HALH HAHH

% ∆ on Reference

Horticulture 6% 59% 212%

Sheep & beef farming

-3% -7% -13%

Dairy farming 1% -5% -28%

Other farming 2% 12% 42%

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The above table indicates varying results from different modelling outputs predicted as a result of land use change away from agriculture towards horticulture. The levels of change indicate the weight of the drive towards horticulture in comparison to the reference case in use.173 It clearly details that overall there may be a significant increase in employment within the sector overall, but that there is significant movement across and within industries, indicating significant workforce changes that are potentially unprecedented. The availability of skilled workers in these emerging markets may challenge Māori farming enterprises and whānau that need to move to where their skills are needed.

Changes in land use impacts employment

The MOTU174 report around these issues further indicates that the modelling suggests only small losses of employment in the dairy and sheep-beef sectors as they expand less or gradually contract but these are more than offset by increases in forestry employment. If horticulture can expand rapidly, it brings large increases in employment. 175 This appears positive, however the impact on employees, many in skilled roles, may be significant, particularly on individual Māori citizens and their whānau they support.

The assumption that these changes will result in loss of employment, based on the modelling undertaken thus far, appears to be unproven. Should increased rates of unemployment or redundancies be predicted, there will need to be further investigation as to what impact this would have for Māori. There have been other similar policy shocks in relation to employment in certain industries historically and an analysis of how this impacted rural New Zealand has been undertaken as part of the ICCC’s investigation. This has considered whether Māori particularly in these industries were and are likely to be impacted if such a policy shock occurred as a result of the current policy proposed. The report indicates that in some communities some social groups may be more vulnerable to economic changes in rural areas

173 Ibid. 174 Ibid. 175 Ibid. at page 13.

Forestry 22% 21% 16%

Total 6% 17% 41%

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and includes Māori in this vulnerable subset, based on the historical research.176 The report also proposed in depth case study analysis as necessary to adequately assess the likely impacts on such communities as a result of these policy changes.177

The ICCC also commissioned a report from MOTU around the potential social impacts of land use change 2020-2050. A key overall conclusion from this report and the futures considered surrounds the motivators for change. The report indicates that most of the land-use change that is expected to occur over this time, occurs even if there is no price on agricultural emissions. The primary driver for land-use change based on their modelling, is in fact the reward for carbon sequestration in scrub and forestry, rather than the cost on agricultural emissions.178 This is important in the overall context, as it indicates that there could be positive changes that result for land use in areas with higher levels of Māori land ownership and/or where Māori are more predominantly located ie: More Māori land becomes more profitable and thus has positive impacts for Māori.

The report undertakes some regional analysis and overlays Māori land ownership and Māori population and deprivation data to consider the impacts. There is danger in averaging the findings as the findings differ considerably across the regions with some areas indicating deprivation levels decreasing, changes in employment, both increases and decreases or simply changes in skillsets.

Ultimately, the report indicates that further regionally specific investigations should be undertaken to consider in depth impacts for rural communities and particularly areas where Māori population bases are higher, alongside the Māori land base, to consider more robustly the likely impact of these changes for Māori.

Changes in skills requires changes in training

Changes in employment that result from a shift in land use may also result in significant changes in training and local infrastructure being required to support large shifts towards horticulture and other land uses.179 With an expectation under a high ambition and high

176 Taylor, N. (2019). Potential impacts of price-based climate policies in rural people and communities: A review and scoping of issues for social impact assessment. New Zealand: Nick Taylor & Associates. Page 15. 177 Ibid. at page 16-17. 178 Motu. (2019). Potential social impacts of land-use changes, 2020-2050: Report to the Interim Climate Change Committee. New Zealand: Motu. Page 6. 179 Supra. n 172 at page 12.

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horticulture model as detailed above showing expansion of the horticultural industry of 212%180, and a reduction in sheep and beef and dairy decline by 13% and 28% respectively, there is an obvious shift in the labour market and a significant shift in skill sets and education or training required to prepare the job market.

The impacts for communities and for the agricultural industry are significant and in turn, for Māori engaged either as owners or employees, this impact will be real. Being able to provide the training for both current employees and those land owners interested in a change of land use, as well as incentivising youth to move into these emerging growth sectors, will be a priority.

Māori also tend to be less mobile as a workforce, preferring to work where they live and where they are connected to the land. Therefore, retraining is even more essential, to enable re-employment within a changing work environment, rather than ceasing employment altogether with that employer.

Availability of relevant and targeted training

There is clear data, that indicates that Māori learn better and have greater success rates in different settings and in different environments than non-Māori, particularly where they are culturally responsive. There is a strong understanding across the literature that Māori learners are more likely to engage and persist with their studies when they feel that they are a central part of the learning environment, and that they belong. This is particularly important for learners who have experienced being on the margins educationally and socially181 which is often those who follow alternative pathways into trades or agriculture.

The key to ensuring success for Māori will be to ensure that tertiary providers and gateway education providers such as Te Wānanga of Aotearoa, Te Wānanga o Raukawa and other trade training and extension providers, are encouraged and enabled to quickly provide the required programmes to encourage uptake and successful redirection of the agricultural labour force.

180 Ibid. 181 Phillips, H. Mitchell, M., (2010). It is all About Feeling the Aroha: Successful Māori and Pasifika Providers. AERU Research Unit, Lincoln University. Chauvel, F. & Rean, J. (2012). Doing better for Māori in tertiary education: A review of the literature. Tertiary Education Commission. Retrieved from: http://maori-lit-review-2013.publications.tec.govt.nz/uploads/TEC-Doing-Better-For-Maori.pdf

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A detailed investigation into agricultural training and extension services was undertaken by FOMA and BERL182 as part of the ICCC’s investigation. Their work confirmed a number of findings around education, training and extension services for Māori in the agricultural industry particularly:

• There are several examples of successful programmes, although these remain either small and/or one-off without ongoing funding, these programmes often share/highlight elements of ‘pastoral’ care, tikanga, and/or te ao Māori perspectives, e.g. mixed-model trainings

• The Federation of Māori Authorities programme, Performance Plus, has demonstrated outcomes, but due to funding constraints, it is restricted to a small number of farms with established processes. The programme has a focus on modifying decision-making and management processes

• Integration or relationship with tertiary education and training providers is sporadic and creates tension rather than collaboration given the funding model of establishing providers.

Their report contained a number of interventions including the need to protect a proportion of funds raised through climate policies, to assist Māori land owners to determine and implement their climate responses. Further they suggested providing ongoing funding to support programmes to operate sustainably. Also further time investigating what other barriers or issues exist that prevent or are causal to low engagement for Māori in the area of mainstream agriculture and horticultural training and extension services. 183

One of the most important elements of their findings and interventions is linked current engagement with Māori and how and when this is most effective. Pilot programmes working with Māori land owners, managers and staff, including mixed-method trainings, show considerable success in effecting change and improving productivity. 184 But on the whole the report indicates concern around the current training options and their suitability for Māori:

“…the data indicates education, training and extension services are currently not fit- for-purpose for Māori needs, and mainstream services appear to have

182 Supra. n 178. 183 Ibid. at page 3. 184 Ibid. at page 48.

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limited ability to be agile in their approach. It is debateable as to whether the needs of Māori are being met by current services in developing governance capability or upskilling on best practices in farming. It is also questionable whether the capacity and capability exists to assist land owners to diversify land use, where the land is able to support such changes. Furthermore, education and training options are largely silo-ed with little or no integration of Mātauranga Māori approaches and with sustainable practices in the primary sector being a separate qualification, rather than integrated into agriculture and horticulture qualifications. “185

As a result they recommended enabling bespoke agricultural training and extension solutions being developed through targeted funding to supply such services being developed by Māori for Māori. 186 This approach is whole heartedly supported and is a focused recommendation resulting from this report.

Actual Impact - Farm practice and land management changes may be harder to achieve and are likely to result in decreased profitability for cost more for Māori Barriers and motivations around mitigation options

Changing on farm practices has been identified as a valid and important form of mitigation. Not only do these changes collectively contribute to an overall greenhouse gas emission reduction, their application could also significantly reduce liability and the impact of any impending policy pricing measures on emissions. Ensuring that these mitigation options are equally as accessible to Māori has been part of this investigation. Mitigation options considered viable or that will be available in the future include:

• Enhanced animal performance • Reduced N fertiliser • Trees on sheep/beef land • Low emissions feeds • Low-CH4 breeding • Nitrification/urease inhibitors • Methane inhibitor (vaccine) • Trees on dairy land

185 Ibid. 186 Ibid. at page 3.

8

Existing practices

Emerging practices

Novel/new practices

Source: Report by NZAGRC for the Biological Emissions Reference Group, 2018

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• GM ryegrass187

There are a number of research projects that seek to address or investigate mitigation of greenhouse gases on Māori farms in particular.188 It does not appear that these reports were intentionally focused on enquiry around barriers to uptake of mitigation measures for Māori farmers. Mitigating Greenhouse Gas Emissions on Māori Farms: An NZAGRC Project does however indicate that pricing and the impact that any measures had on profitability, was naturally the biggest factor for Māori land owners in mitigation decision making.189 The same report notes that further research will be undertaken around working with Māori farms on cultural values, aspirations and objectives. Until this research is complete, there is little information around specific mitigation options, tikanga and mātauranga Māori. On this basis it is difficult to say in a practical sense, whether there are any significant cultural barriers to uptake of mitigation practices.

Over half of the mitigation options available or imminent, include forms of genetic modification to either make the product available (feeds) or within the animal itself. There is significant research around Māori perspectives on genetic modification. Although the end game of combatting climate change appears to be aligned with kaitiakitanga, there are many Māori that fundamentally are opposed to genetic modification.190 The Royal Commission on Genetic Modification included as part of their consultation round 11 hui on marae, attended by 379 people and resulting in 102 oral and 12 written submissions, and 28 Pre-Regional Hui workshops with tribal representatives. The dominant themes coming through from the submissions were against GM, on a number of cultural, health and environmental grounds. In addition to potential risks to human and ecosystem health, Māori cultural dimensions of concern about GM relate to such matters as:

• as whakapapa (not interfering with the genealogy of people and indigenous species),

• mauri (preserving essence and purity by not mixing materials from disparate sources), and

187 Supra. n 33 at Chapter 4. 188 Supra. n 26. 189 Ibid. at page 73. 190 Ngā Kaihautū Tikanga Taiao. (2008). Issues of significance to Māori – Evaluation of decision making: Genetic Modification. Page 2. Retrieved from: https://www.parliament.nz/resource/mi-nz/49SCLGE_EVI_00DBSCH_FIN_8936_1_A17583/3e7c3c128debc1fa239fe3b2c72f21c5644c8af0

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• tino rangatiratanga (sovereignty over taonga or treasured resources).191

It appears clear that there is still significant work required to allow the intangible, metaphysical concerns, such as the interference with whakapapa and mauri, to be appropriately considered and addressed.192

Misalignment with tikanga, may be one of the likely barriers to uptake of mitigation technologies or practices. Working to discover more about this and ensure an understanding of practices from both Māori and non-Māori farming perspectives will be essential to break down this potential barrier.

It is essential that enabling policy seeks to make Māori farmers feel comfortable in applying low emission practices on farm. A large part of this is ensuring that the education and training incorporates Māori components, te reo and tikanga as teaching resources as well as setting the context.

It is important particularly to highlight and understand any disconnects between farm practices being promoted and their alignment with tikanga ie: native planting in effluent prone areas.

Further, work/research in this space around barriers to mitigation uptake could ensure that Māori are best placed to take advantage of the many opportunities that will exist around production, product development and having the ability to be first to market with low carbon products. Further, finding ways to educate or align mātauranga Māori with mitigation technologies would create significant wins for multiple parties.

More likely to face risks to profitability in mitigation

In the course of the ICCC’s investigation, a report was undertaken by AgFirst193 ‘GHG costs and benefits on different land classes’. The report considers the impact of mitigation options on a number of farm systems as case studies. Overall the report indicates that land type or

191 Peterson, D.A. (2002). Background paper No. 26: Genetic modification. A resource document for New Zealand MPS. Parliament Library. Retrieved from: https://www.parliament.nz/resource/mi-nz/00PLEcoRP02031/9b9daa9d3d61f962d81d99629eb02357fb73ba0f 192 Supra. n 7 at page 7. 193 Supra. n 41.

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class generally offers increasing challenges to profitability as the land class worsens with the Effective Farm Surplus per ha (EFS/ha) declining both within and between land use. Ultimately, this may “indicate that any additional costs imposed on the systems will have a greater influence on land which is ‘harder’ than ‘easier’ land.”194

This finding is of particular interest when considering impacts of subsequent policy on Māori, who particularly have considerable land holdings in LUC6 and above. 195 Arguably the ability for Māori to not just adopt changes in land use and practice, but also to be profitable in doing so on their land is challenged, potentially more so than for other land users.

Ultimately, the allocation methodology can be used to influence this as evidenced in the case studies analysed. Some farms on tougher classes of land achieved a positive benefit to EFS/ha, showing the very clear importance of ensuring the ultimate design of the free allocation method for Māori.196

Further research by BERL undertaken as a result of the AgFirst report and case studies also highlighted deficits in using the case studies to cross apply the findings to a wider range of Māori land. Including specific characteristics of Māori land such as constraints on land size, management and governance issues would be necessary before assuming that the case study findings can simply cross apply to Māori land of the same classes.197

BERL note that:

“…advice around the form of policy interventions (whether free allocation method or other) should seek additional information on the impact of emission mitigation options on Māori and Iwi land. If not, policy interventions that are designed to be relevant for a range of example farms, risk impacting on Māori in an unforeseen (and unintended) manner.”198

194 Ibid. at page 9. 195 Supra. n 42. 196 Ibid. at page 3. 197 Ibid. 198 Ibid.

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Potential Impact – Pricing emissions based on current land uses and land classes may result in wins as well as losses for Māori land owners

Least impacted by emission pricing

It has been identified that significant amounts of Māori land are classified as classes 6, 7 or 8199 and the table below indicates that:

• “Less than 4% of Māori land is LUC class 1 and 2, the most highly versatile land classes in New Zealand

• Only around 9% of Māori land can be used for horticulture • Only 19% of Māori land is available for cropping • Approximately 10% of Māori land is arable but has extreme limitations for arable use

such as cropping • Almost 80% of all Māori land is suited to non-arable use, LUC Class 6, 7, 8 (mostly steep

hill country) • 34% is non-arable but productive land, generally relatively stable hill country or

alluvial flats suited to pastoral farming and forestry • 46% is marginal land (LUC Class 7, 8) and needs to stay under trees/vegetative cover

to protect soils, limit erosion, maintain water quality”200

199 Supra. n 23 at page 21. 200 Ibid.

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Māori Land Use Capability201

The data indicates that as much of the land is “under developed” therefore there remains minimal immediate risk or pressure imposed through the pricing of emissions based on land use of current emissions. The challenge or impact of these policies is only more significant in so far as it may reduce development potential of land within some certain land use options, and will need to be considered once land is developed or within development strategies for land owners moving forward.

The development potential of this land under alternative uses however is still significant, particularly under the ETS, forestry and carbon farming, biofuels and more.202 As a result, for some Māori land and its owners, that may otherwise have been seen as lagging behind on its

201 Ibid. 202 Ibid.

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development potential, will be winning from the outset, having less obligation around emissions as well as having less debt or funds utilised to develop land into enterprises that may now be less lucrative.

Devaluing Land? Yes or No

One of the impacts foreseen relates to the potential reduction in the value of the land returned or land intended to be returned to Māori, within a Treaty settlement. Although the proposed policies are not focused on regulating or limiting farm practices on certain classes of land, the proposed policies may have direct impacts on the value of that land. A softer approach to encouraging land use change through incentivisation and or gradual introduction of policies may over time render certain types of farming less lucrative, this ultimately minimises the current potential uses for the land and therefore its value.

The purpose of land being returned as part of a Treaty settlement is a method of compensating Māori for the losses that originally occurred through loss of land. The return of that land is part of enabling Māori to regain some of the wealth that would have otherwise have accumulated for whānau, should land have been retained in their possession. Any policy that disables or disenfranchises Māori further from that land by limiting potential uses, could be hindering progress for Māori further. See section above around Māori land utilisation and development policies.

Further, one could argue that there may also be an increase in land value or property value that is forested, carbon farming or of value to reducing emissions in some way. The increase in value to be ascribed to this will be directly related to the movement in the value of ETS units or equivalent, or any other policy incentivisation that occurs to encourage such land uses.

Financial pressures limit ability to utilise land

The nature of Māori land ownership as identified above means that a significant amount of Māori owned land will have been awaiting full development over time. Many Māori entities opted to forest their land as an investment with guaranteed returns203 with a view to harvesting to reap those rewards and then use those returns to develop their land. Over that

203 50% of New Zealand’s forests were on Māori owned land as at 2014. Supra. n 23.

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time many entities hoped and have worked to prepare whānau for taking over management of the land and develop it for another enterprise, often a form of production farming.

With many of these forests due for harvesting soon, there will be large amounts of Māori land that is available and would have been intended for changing to a more productive use. Strategies, Environmental management plans and long term plans have been developed by many Māori organisations, and many would not have foreseen changes to potential land use, nor been preparing for this. A review of 20 iwi management plans within the Waikato Region revealed that only a small number of these had a strategy that included moving away from agricultural practices on land, and in fact a number acknowledge the contribution that farming had played within their iwi histories and the role it would play moving forward.

Iwi, hapū, marae and whānau collectives relying on future developments may be significantly impacted by these changes, but the extent of this can be balanced against those who have minimal emissions and therefore minimal obligation through pricing policy.

Māori as shareholders/landowners are entitled to receive dividends from any enterprise being undertaken on Māori land, for which they own shares. Any impact that pricing emissions has on the profitability of a farming operation will by default have a direct impact for Māori shareholders, whose return or dividend may naturally be reduced accordingly.

Although most beneficiaries do not receive large sums from profitable land, due to large numbers of owners, there will still be a number of Māori that would feel the impact of their distributions being reduced due to failure of an enterprise or an inability for management to realise the assets best value.

Land title restrictions for Te Ture Whenua Land

Difficulties around alienation (land should only be transferred to a preferred assignee) is one of these, and further collective decision making impediments. The threshold of gaining consent to large decisions is a barrier, however one that can be creatively worked around for longer term projects being developed in a piecemeal approach.

A significant barrier that Te Ture Whenua title poses however is the inability to utilise Māori land as collateral, or to be borrowed against. This was an essential element of protecting the land historically. It has a considerable impact on an entity or a group’s ability to develop or invest in changing land use or any infrastructural needs to support changes in practice.

Ultimately, this adds to the trifactor that Māori organisations are often working with in so far as their land holdings are concerned:

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• Limited use due to land class

• Collective ownership challenges

• Inability to gain finance to pursue economic strategies and development

Ultimately, these limitations result in intensifying policy changes through an inability to be responsive and hasty in changing processes, which in turn increases losses where they are accruing over time.

With considerable time and effort being focused on Te Ture Whenua Act review by the last government and discussion that this will be revisited, integration of any such review’s outcomes is essential to help enable and support climate policy initiatives. Connections between land use changes desired, alongside other climate policy developments, should be focused and aligned with changes and integration with or introduction of proposed Māori land services who will no doubt be instrumental in assisting landowners to meet intended objectives.

Perspectives on alienating land

With reference to the Te Ao Māori discussion above in section 2, it is noted that these perspectives bring additional values that may otherwise not be considered in decision making processes.

This connection with whenua, as discussed above, in addition to the time and battles fought to have certain lands returned, often through the treaty process, contributes to and further entrenches perspectives around use of land. Particularly around considering alienation of land where profitability is in question.

Many whānau collectives have supported or been instrumental in advocating for the return of lands that have been alienated from them over time or by force. These processes have in many instances taken over a century or more and are firmly anchored in the memories of those still managing or who are kaitiaki for their land. Further, having endured these processes means that considering selling (albeit to a preferred alienee) or willingly agreeing to make a commitment around the use of the land for a long period to time, is untenable.

Further, being restricted by policy that limits what uses that land can be put, due to the costs involved with certain land uses, may result in significant ill-will or the feeling of further land alienation. It has been identified that a primary constraint for Māori land development is a

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‘social psychology that had its roots in historical trauma’204 such as alienation described above. This can result in landowners taking either too much risk, or too little risk and this can lead to conflict and indecision.205 These nuances mean that making a rational decision based purely on profitability is not always possible and doesn’t always mean the outcome can be anticipated.

In some instances land that has been returned through treaty settlements is able to be sold as it is not Māori land per se. The same argument remains however, with this being less likely to occur due to the manner in which it has ended up in Māori hands. The opportunity to sell some parcels of land to reinvest in more productive land holdings, still within tribal boundaries, is one example of how changes can take place without alienation of land and people.

Additionally, the perspectives surrounding business strategy and long term goals, seldom include the possibility or an exit strategy that includes the sale of land, regardless of whether the possibility of sale is prevented through the method of land ownership.

Potential Impact – Allocation options considered challenge concepts of rights and interests resulting in contemporary Treaty of Waitangi claims

The allocation models considered have been investigated and overall there are potential impacts for Māori both postive and negative. The ICCC’s preferred model is a mixed method of output and land based allocation which poses reduced risk to Māori overall. However it is essential that futher work to develop the detail of the allocation methods, including work to determine eligibility for free allocation ensures that un or underdeveloped Maori land is eligible for any free allocation or through ring fencing free allocation for new entrants to the industry (of which Māori tend to be).

The real potential impact may be the notion that the concept of allocation in itself is akin to creating rights and interests, similar to water allocation. It is important to include Māori as Treaty Partners in this discussion moving forward in the spirit of partnership. Ensuring that

204 Reid, J., Barr, T. & Lambert, S. (2013). Indigenous sustainability indicators for Māori farming and fishing enterprises: A theoretical framework, at page 17. Retrieved from: http://www.nzdashboard.org.nz/uploads/2/3/7/3/23730248/13_06_indigenous_sustainability_indicators_for_maori_farming_and_fishing_enterprises_reid_final.pdf 205 Ibid.

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free allocation reaches Māori proportionately within modelling of 95% free allocation will therefore be an imperative part of this ongoing discussion with Māori as Treaty Partners.

Farm level free allocation methods

This issue has arisen within the context of Māori as treaty partners. The allocation basis that the models have worked upon has been considered in detail.

Allocation in a Quota Management system

A quota management system was proposed by the Productivity Commission in their report on a low-emission economy and one of the policy options considered by the ICCC. This would have included individual transferable quota to emit biogenic CH4 and would be allocated to farmers on the basis of historical production (grandfathering). This system has already been utilised for other resources, such as fisheries in New Zealand. Utilising an already established system, particularly one that has attempted to address and include Māori interests within that system previously proffers great learnings and removes the element of surprise or guesswork, but it also brings with it “policy baggage” or path dependence issues.206 This occurs where there exists a history around policy making in a specific area, and where there is not enough consideration given during new policy making, to the histories and externalities that have evolved due to these policy histories. The Quota Management System is known so intimately as the way that fisheries management operates, that in the climate change and methane context, these perspectives, highs and lows will follow with it.

With this being the relative starting point for the system, path dependence frameworks indicate that time needs to be spent understanding this history, and cautions to beware of identifying quick fixes or radical proposals as these may further impede or limit the feasibility of future options.207 This includes the varying perspectives around:

• The basis of the allocation model

• What other options were considered as part of the model development

• Whether it achieved the intended outcome

206 Weimer, D. Vining, A.R. (2011). Policy Analysis: Concepts and Practice (5th Edition). New York, USA: Routledge. Page 269. 207 Ibid.

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• Whether the perspectives vary across different Māori fora and with different iwi

For example, in the context of fisheries for Māori, the ’business of fishing’ now frequently means the trading of quota instead of maintaining their traditional role of kaitiaki over fisheries. “Guardianship over the environment is very different from guardianship over quota rights.”208 Māori experiences of the QMS and particularly the long and drawn out consultation and decision making around how the assets were to be allocated, have been challenging. The debate around method of allocation to this day has left factions.209

Grandparenting

Grandparenting allocation as a method has been used as a baseline for nutrient management under Horizons Council in recent times, and it too has been tested and provides some learning. For Māori the potential for this method to negatively impact some, may be high. A large amount of Māori land has historically been understocked or undeveloped210, and therefore using previous emission levels to provide a baseline would result in allocation of comparatively fewer units over some large areas of land than might otherwise be required if the intention or strategy for the collective was to develop land use over time. This is also relatively unfair within the context of 95% free allocation, as those who have already developed their land or are running higher emissions enterprises are rewarded with valuable units, which (dependant on the type/method of pricing) can become available for sale should they adapt and reduce emissions. Those who have significantly fewer units under free allocation, have fewer mitigation options nor the availability of sale of units or producing land to create capital for development. Equally, those who have already made great strides in reducing their emissions over the last few years, the “early adopters” may not be rewarded for their efforts. The inequity appears to fall harshly on Māori land owners due to current land uses being the baseline.

208 University of Auckland. (2017). Failed fisheries management system costing NZ economy and environment, experts say. Retrieved from: https://www.auckland.ac.nz/en/about/news-events-and-notices/news/news-2017/06/failed-fisheries-management-system-costing-nz-economy-and-environment-experts-say.html 209 Hale, L.Z. & Rude, J. (eds.). (2017). Learning from New Zealand’s 30 years of experience managing fisheries under a quota management system. The Nature Conservancy: USA. Retrieved from: https://www.nature.org/media/asia-pacific/new-zealand-fisheries-quota-management.pdf 210 About 38% of all Māori land in New Zealand is in indigenous forest, Roughly a third 30% is under grassland or pasture, Approx 20% is presently in scrub, Approx 13% is manuka/kanuka, Exotic or planted forest accounts for about 12.7%. Supra. n 63 at page 23.

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Māori may be more likely to receive fewer units based on current land use. The fact that 95% free allocation is being considered makes it more, not less imperative to get the allocation model right. Further, this also entrenches that need for Māori to be front and centre or any further discussions around allocation methodology.

Free Allocation for new entrants to industry

It has been identified that free allocation for farmers enables them for a period of time, to continue current practices and begin their transition. Whilst the final methodology has not been decided, it is assumed that any new entrants to the industry would bear the full brunt of the emission costs or alternatively face considerable competitive disadvantages. This has been highlighted particularly as a risk for Māori land owners, many of whom have been slower to transition towards greater land utilisation for a number of reasons. Any lack of access to free allocation for new livestock farmers may pose a significant barrier for those that are already facing increased costs as later entrants to these markets.

Whilst considering the need to deter higher emitting new entrants to the industry, phasing access to free allocation over time or ring fencing a proportion of free allocation for new market entry for sustainable farm enterprises, will assist with removing barriers to land utilisation. This like other elements of the model, will require balancing, and phasing out. The purpose of this is to ensure that any disproportionate impact for Māori and other landowners is mitigated. The aim is to achieve equity, not equality. So long as land owners are engaging in low emission farm practices, additional barriers to market entry should not be imposed or further inhibit land utilisation or the ability for Māori or other land owners to become farmers.

It is very important to acknowledge however that any policy or ring-fenced allocation is not to the detriment of the overall aim of reducing emissions and ensuring a transition to low emission practices. Any such ring-fenced allocation should have strict rules around its application, to ensure any new agricultural enterprises are best in class low emission enterprises.

Other allocation methods

The impacts on Māori of the other methods of free allocation considered by the ICCC (Proportional, output, land based and a hybrid of output and land based) are dependent on the design details of those free allocation methods.

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A land based approach could favour lower developed Māori land because units could be allocated on the basis of the productive capacity of that land (therefore greater than the emissions generated off that land if it is not used to its full productive capacity).

An output based approach could disadvantage Māori land if it is being farmed in a way that is less emissions efficient than other land, that is, is less emissions efficient than the national average.

In all methods of free allocation it is essential that in determining the criteria for eligibility for that free allocation does not exclude undeveloped or under stocked Māori land.

Consideration of using eligibility maps during the design phase of the methodology would help to ensure that Māori land results in eligibility under each of the proposed methods, alongside removing obvious methods that have been identified as posing barriers for Māori.

To ensure that in the detailed design of any free allocation the unique characteristics of Māori land are considered and Māori are not disproportionately affected it is critical that iwi/Māori including owners of Māori land are included in any design process.

Capitalisation of free allocation

This option was investigated at length primarily due to the concerns around limitations for Māori land owners to take advantage of this policy. The research indicates that as long as the land is not sold or alienated from its owners, there should be no reason why an undertaking (lien, or other instrument) could not be offered over the property indicating a commitment to refrain from certain practices for a period of time. It is important that this option is explored in detail as it specifically proposes a suitable solution to a number of issues raised above around pricing models.

Dependant on the allocation methodology applied, there may be instances where Māori receive fewer units from any free allocation process, having an option to receive a lump sum pay out to invest in other methods of land utilisation, would appease this imbalance enabling farmers to access their allocation in one sum for greater impact. Ensuring that the terms of this policy also support the ring fencing or later entrant access as with the free allocation itself, will also be key. Overall this policy option should not disproportionately impact Māori as long as the original allocation methodology does not.

Ensuring that an alternative option is also available for those wanted to transition to low emission land practices whilst still utilising their land, would need to be prioritised through

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any resulting fund or incentives to ensure there is comparative access to development capital outside of the allocation scheme.

Potential for Contemporary Claim

There remains a question around whether introducing a price on emissions that includes some form of free allocation could create or initiate one or a number of contemporary Treaty claims. It has been found by the Waitangi Tribunal, that equity must endure:

“Where Māori have been disadvantaged, the principle of equity – in conjunction with the principles of active protection and redress – requires that active measures be taken to restore the balance.” 211

Ultimately, the test will be whether the proposed policy would be considered fair and equitable in the context of the Treaty and whether Māori have been disadvantaged by a particular policy.

In creating a cap or a limit around a resource (the resource could be considered to be air or the right to emit) or in allowing a resource it to be polluted or over allocated by allocating rights to discharge, has resulted in contemporary claims (claims to the Tribunal post 1992) in recent times. Further, any policies that result in Māori being unable to farm or remain connected with their land in a traditional sense could alienate tangata whenua from their land and/or their ability to practice kaitiaki responsibilities, could in itself be the basis of a claim.

Appendix E - Transition to Renewable: Supplementary Information

In-depth Analysis of Effects, Impacts and Economic Risks and Opportunities for Māori

The ICCC specifically notes that their key aims are to:

211 Waitangi Tribunal. (2016). Principles of the Treaty. Retrieved from: https://www.waitangitribunal.govt.nz/treaty-of-waitangi/principles-of-the-treaty/

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• Deliver evidence and analysis on the likely options, costs and practicality of how New Zealand can move toward 100 percent low emission electricity by 2035.

• Achieve this through considering the whole of the electricity system including:

o Technological and systemic changes in electricity supply, as well as challenges in real time reliability and grid security

o Changes in electricity demand. Changes across the transport system and fuel substitution in the industrial sector, to lower emissions, have the potential to fundamentally change future demand for electricity.

• This will encompass analysis of options to accelerate electrification of those sectors

In the review of the ICCC’s initial investigation, the following issues were identified:

• Issue 1: Use of Natural Resources (includes the control of those uses)

1. Māori Ownership/Proprietary Rights of Natural Resources

2. Maintaining existing consent conditions for hydro generation

3. Impacts on Māori ancestral land, water, sites, waahi tapu, taonga

• Issue 2: Participation in Transition

• Issue 3: Social Impacts for Māori

Issue 1: Use of Natural Resources

In considering the alternative strategies to achieve an increase in renewable electricity use and production it has been highlighted that there will need to be a focus on increasing geothermal energy supply, wind and hydro. The availability of, and access to these renewable energy sources is key to the transition.

An important aspect of the Treaty of Waitangi for Māori is the guarantee of tino rangatiratanga or the unqualified exercise of chieftainship over lands and all their property/treasures, which includes the ability to control the use of resources.

It is noted that the dependence on both water and geothermal resources within these strategies towards renewable electricity, does not appear to highlight levels of uncertainty in the rights and interests space and instead appears to avoid the issue. This will be discussed further below.

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Potential Issue for Māori as Treaty Partners - Maintaining 60% Threshold of Hydroelectricity

Further to the rights discussion which is explored further below, we need to consider the impact and primary reliance on renewable energy sources such as water, within the strategies to transition. Kelly (2011) outlines hydroelectricity is the principal source of renewable energy in New Zealand comprising around 60% of total electricity supply212. It has been indicated within that this will need to be maintained or increase to aid the transition to a higher renewables model.

Water is a resource that Māori relied on as a source of food, source of textiles and materials, for the performance of rituals, and celebrated in waiata and other practices. Not only that, the water body which carries the water is a source of identity to Māori, eg “ko te awa ko au, ko au ko te awa; I am the river and the river is me”, with a number having taniwha residing within them213.

There are a number of Waitangi Claims, specifically the Waikato River214 and Whanganui River215, that exemplify the importance and prestige placed on water resources, and the role of Māori in the control and use of the natural resource, and its return to a state of prestige again. Both settlements applied differing models of management of the resource to recognise the values of the rivers.

These settlements reflect a trajectory for the water rights and interests debate. Considerable thought should be given around how any resulting resolution of water rights, and resulting management or protocol to support this, may impact on the country’s ability to access, use and increase hydro-electricity. Subsequent decision making for the resource and the basis of that decision making (ie: uplifting the needs and preservation of the water itself) may impact ongoing access.

212 Kelly, G. (2011). History and potential of renewable energy development in New Zealand. Renewable and Sustainable Energy Reviews, 15(5), 2501-2509. 213 Waitangi Tribunal. (2012). The Stage 1 report on the national freshwater and geothermal resources claim: Wai 2358. Section 2.7. Retrieved from: https://forms.justice.govt.nz/search/Documents/WT/wt_DOC_59941926/Wai2358W.pdf 214Waikato-Tainui Raupatu Claims (Waikato River) Settlement Act. (2010). 215 Te Awa Tupua (Whanganui River Claims Settlement) Act. (2017).

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Reducing drawing water from waterways identified as Māori ancestral waterways and taonga as source(s) for hydroelectricity, is likely to be a future focus.

Potential Issue for Māori as Kaitiaki - Impacts on Māori Ancestral Land, Water, Sites, Waahi Tapu, Taonga

In its “Wind Power, People, and Place” report, the Parliamentary Commissioner for Environment references to the Māori world view of landscapes and intrinsic links to the natural environment, good wind farm sites are often on coastal land and hilltops which may contain sites of significance to Māori.216 The report outlines that Māori must be involved in the decision-making on wind farms.

In addition to the location and positioning of wind farms (turbines etc) is the transmission infrastructure to connect energy with the national grid and communities. Often these new (and existing) wind farms and supporting infrastructure impact on landscapes and environs significant to Māori.

Similarly, with renewable electricity activities in the coastal marine environment such as wave or tidal, these same projects may have impacts for Māori. The Marine and Coastal Area Act 2011 provides for the recognition of the customary rights of Māori in the coastal marine area. Currently there are 385 customary marine title applications with the Crown and 202 applications with the New Zealand High Court.217 There remains a distinct area of uncertainty in this area, but this means it is also an area where innovation and partnerships can develop and evolve.

Potential Issue for Māori as Kaitiaki - Geothermal Source

McLoughlin, Campbell and Ussher (2010) outline that Māori have a key role in many New Zealand geothermal projects through their ownership of land that provides access to geothermal resources in New Zealand218. For many Māori, interests in geothermal resources

216 Parliamentary Commissioner for the Environment. (2006). Wind power, people, and place. Wellington, New Zealand: Parliamentary Commissioner for the Environment. Page 52. Retrieved from: https://www.pce.parliament.nz/media/pdfs/Wind_power,_people,_and_place.pdf 217 Ministry of Justice. (2018). Marine & coastal area – Takutai moana. Retrieved from: https://www.justice.govt.nz/maori-land-treaty/marine-and-coastal-area/applications/ 218 Supra. n 48 at page 25-29.

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are not commercial but stem from a desire to protect the taonga.219 There are a number of projects that are conducted in accordance with the practices of Māori trusts or organisations that either receive royalties for hosting a power developer, or have full development and ownership.

The taonga status given to geothermal resource by Māori need to be acknowledged and may not necessarily be expressed or align with the identification as a resource for increased use and production.

Potential Issue for Māori as Treaty Partners and Kaitiaki - Ownership/Proprietary Rights of Natural Resources

Encompassed within the debate around tino rangatiratanga or guaranteeing of the unqualified exercise of chieftainship over lands and all their property/treasures, the ability to control the use of the resources, is ownership and/or compensation.

With the collective Waitangi claim, Māori are seeking recognition of rights and interest in freshwater and geothermal resources. There are two stages to the inquiry, with the first inquiry completed in 2012, and the second inquiry currently in progress.

The Waitangi Tribunal report indicates an initial finding that:

“If the claimants and the interested parties have residual proprietary rights (as the case examples suggest that they do), then the Crown’s Treaty duty is to undertake in partnership with Māori an exercise in rights definition, rights recognition, and rights reconciliation”.220

This exercise of rights definition, rights recognition, and rights reconciliation, has yet to be resolved between Māori and the Crown, but did result in the halt of the partial sale of state owned power generators proposed in 2012. The Tribunal found that Māori do have residual proprietary rights in water and moving ahead with the intended sale of assets would be considered a breach of the principles of the Treaty of Waitangi221 and the Crown may breach the principles of the Treaty of Waitangi if it goes ahead with the intended share sale. The fact that this issue surrounding water rights and interests remains unresolved and subsequent

219 Ibid. 220 Supra. n 12 at page 107. 221 Ibid.

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indications that geo-thermal resources are treated the same as water, is further evidence that resolution of water rights may impact or flow on to geothermal.

The key finding of the Stage 1 inquiry is that:

‘[T]here is a nexus between the asset to be transferred (shares in the power companies) and the Māori claim (to rights in the water used by the power companies), sufficient to require a halt if the sale would put the issue of rights recognition and remedy beyond the Crown’s ability to deliver.’ 222

If we consider these findings and the direction of the Tribunal in the context of geothermal activities, there can be conclusions drawn around how the government should be treating this resource and Māori rights and interests in it.

The Tribunal are currently working on providing a response to the following questions as part of its Stage 2 inquiry:

1. Is the current law in respect of fresh water and freshwater bodies consistent with the principles of the Treaty of Waitangi?

2. Is the Crown’s freshwater reform package, including completed reforms, proposed reforms, and reform options, consistent with the principles of the Treaty of Waitangi?

Currently, there are concerns around access and the first in first served basis of processing consents for water allocation and the ability for Māori to partake in this process. This may be intensified where there are competing demands on resource use and consenting of electricity producers could well pose risks of further over allocating the resource and restricting access for Māori. The issues around rights of access to water at all levels for Māori are clear.

It has been identified that there is a real risk to the strategy to encourage renewable project development without focusing on relationship building with Māori, particularly where Māori have a significant say around access and use of resources. Relationship building will enable policy makers to build enduring relationships across multiple issues.

222 Ibid.

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Additionally, the flow on effects of the implementation of these projects include land use changes and related impacts, similar to those detailed above in the agricultural impact analysis.

To ascertain an accurate perspective on the relevance of relationship building around these issues and projects, it is helpful to view the number of the Māori land holding resources available, as well as the mapping tools detailed in the Agriculture analysis. When these land holdings are overlayed with and considered in the context of access to resources that are of high value or high output, the value within those relationships escalates.

A project has been undertaken mapping out the locations of all renewable energy sources in New Zealand. It also includes a number of overlaying Māori land holdings in relation to the resources. This resource will assist in building relationships and highlighting the importance of bringing Māori on this journey.223

A link to the resulting mapping tool/report for resource locations and including some Māori land indicators, can be found here:

https://www.niwa.co.nz/sites/niwa.co.nz/files/import/attachments/Summary-of-resource-maps_H2.pdf

Issue 2: Māori Participation in Transition to 100% Renewable Electricity

Potential Issue for Kaitiaki– Māori Trust Owned Land

It has been identified that a considerable amount of land that would be suitable for use in these types of renewable projects as well as a large number of resource access points exist, within Māori land holdings.

The detail provided within the Agriculture section above, around land use and land use change impacts for Māori, can all be applied and considered within the renewables context.

223De Vos, R. & Fortuin, S. (2010). EnergyScape summary of resource maps. Auckland, New Zealand: NIWA. Page 12. Retrieved from: https://www.niwa.co.nz/sites/niwa.co.nz/files/import/attachments/Summary-of-resource-maps_H2.pdf

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Primarily the issues around governance and decision making, may have impacts around the ability or delays in gaining access or consent, as well as the weighing up of values around resource use. A considered read of these issues and impacts as well as the proposed solutions within the context of access or use of renewables is necessary.

Many of these issues mean that full participation of Māori within these projects, is compromised. Similar issues around consensus decision making, often result in the inability to participate fully, alongside considerable drains on financial and human resources in fully participating in these processes. The demands on key individuals within Māori organisations, particularly in resource management, are significant. The sheer number of projects across the resource management spectrum necessitating participation, make this a mammoth task for any organisation to fully achieve.

Relationship Basis - Genuine v Investor

It is important to note the difference between building relationships based on the need for investment contributions from Māori, or for their support with a consent process, rather than to build a genuine enduring relationship. Although all of these forms or reasons for relationships will exist, the genuine commitment to involving Māori in these conversations from the outset will set a solid foundation for these relationships to be honest, transparent and mutually beneficial. The questions and discussions being held around resource development are not short term. They require solid relationships that enable ongoing discussion and input at multiple touchpoints across years of a project and over decades. These relationships will be key to creating and implementing a truly robust and smooth transition to 100% renewable energy. These relationships represent a true Treaty partnership which is more likely to succeed in its objectives.

Within their submission on the Productivity Commission’s Low-Emissions Economy – Draft Report, Te Rūnanga o Ngāi Tahu submitted:

“there is greater potential to get things right when viewing economic benefits, and associated co-benefits, from an indigenous perspective, through the lens of Treaty partnership”224

224 Supra. n 50.

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Issue 3: Social Impacts for Māori

Potential Issues for Māori as Citizen

Meade’s report on Incidence of Emissions Charges and Other Climate Change Policies: Implications for Māori Cost of Living Research225 is extremely helpful in helping to identify the impacts for Māori at a household level, around resulting policy impacts for electricity price increases. Any in depth analysis of socio-economic data is contained therein and should supplement any general population analysis undertaken.

Within Meade’s report the statistics clearly indicate Māori are over represented in a number of categories which contribute to socio economic factors. At the average population level, Māori are:

• Much less likely to have completed secondary school; • Much more likely to be unemployed; • More likely to be on a low income; • Much more likely to be receiving income support; • More likely to be in a household with no telecommunications or internet; • More likely to not have access to a motor vehicle; and • Much more likely to be renting, and living in a crowded house. Māori are also younger

on average than non-Māori (Statistics New Zealand, (2013a)).226

The disproportionately high number of Māori that exist within the lower socio-economic groups in New Zealand means that Māori may be disproportionately impacted by policies resulting in electricity price increases.

Meade details a number of reasons that contribute or intensify this reality for many Māori:

• Long-term location choices by Māori households and their variability are likely to be key drivers of their ability to make the investments that minimise pricing impacts.

• Rural Māori are more likely to be vulnerable and susceptible to pricing impacts. This is intensified in areas there are large Māori populations with limited access to mitigation, lower incomes as well as higher risks of climate related risks (Northland and East Coast are examples of this based on population data).

225 Supra. n 51. 226 Supra. n 51 at page 10.

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• Urban Māori are at higher risk also as they are more likely to be based further from urban centres so are more impacted by the cost of daily travel, increased housing costs.

• Māori are more likely to be tenants and therefore limited ability to invest in mitigation technologies that are fixed to homes.

• Barriers to making long term investment decisions (investing in EV’s of low emission heating) means that Māori households are often slower to adapt new technologies.227

These disparities may over time directly result in further impacting standards of living (heating, and standard of housing/affordability), and therefore the impacts for Māori should not be understated.

Further work could be undertaken in this space to investigate cultural barriers or self-identification of eligibility versus state identification of poverty. Particularly working to develop a Māori perspective within energy poverty discussions.228

Home Generation and Electrical Vehicles

One of the suggestions reviewed proposes to provide initiatives to encourage uptake of home generation or subsidies and incentives for investing in electric vehicles.

It has been identified above that the disparity in household incomes for Māori and other related socio-economic issues, will mean that incentivisation is not a viable option for many Māori. Those most vulnerable and most impacted by rising costs, will in turn have more pressure from price rises and not be in a position to take advantage of these types of technologies that will help to minimise pricing impacts.

Costs of home generation and electric vehicles may, based on current prices, be prohibitive even with subsidies applied. An example would be the availability of a $5000 subsidy but the purchaser needing to top up a $1000-10,000 to pay the remaining costs for home generation systems and electric vehicles.

227 Ibid. at pages 39-40. 228 Statistics NZ. Stats NZ Website. Retrieved from: http://archive.stats.govt.nz/browse_for_stats/people_and_communities/Households/energy-hardship-report/background.aspx

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Should landlords choose to uptake such subsidies the remaining investment would ultimately be passed on to the tenant on the basis that they would be receiving reduced electricity rates. The financial analysis of whether the increases in rent would be comparative to the decreases electricity provided through home generation systems would resolve this. Equally, even with a landlord that is keen to invest in equipping properties with home generation systems, the uptake and flow on effects for this may be comparatively slower than a motivated long-term home owner.

As detailed above, a further piece of research that would support policy writers, would be the investigation of any cultural barriers to accepting funding and challenging perceptions of poverty.

Cultural connection to place however may assist some Māori to see the value in making long term investments where land is owned. Comparative to other members of the community who are less likely to be concerned about remaining in a location.

Employment

Similar to the impact of the agricultural industry changes, changes to electricity supply and suppliers may bring about changes in skills required and training needs.

Individuals will need to prioritise upskilling in industries where their employment is likely to be compromised. This training will need to be provided in a method and manner that is more likely to achieve success for Māori, as detailed within the employment and agricultural policy discussions.

Should these changes result in permanent or even temporary unemployment, this may have impacts for Māori who are more vulnerable as demonstrated.

Iwi, hapū and marae will have a support role to play in these situations.

Potential Issues for Māori as Kaitiaki

Household impacts transferred to Marae

In considering the impacts for households and whānau, we identified a number of areas where disparity or inequity might occur. For some Māori they also receive support from their iwi, hapū, marae collectives which may ease some of these stressors. These connections to whānau and marae however, may also amplify impacts where whānau sometimes financially support marae infrastructure as well as each other.

117

The availability of incentives to marae will need to be considered, to ensure access to technologies that will minimise price increases in electricity supply and transportation. Should this not be the case, there may be many instances where whānau who are vulnerable, also bear the burden of financially supporting their marae when cost increases bite. Equally, marae that hold family events, tangi and celebrations, will in turn need to increase their catering and booking rates/koha to attempt to cover some of these price increases. Another impact that flows down to whānau and individuals.

Management and governance structures of marae, hapū and iwi may also face the impacts detailed within the agricultural context. Decision making delays, and consensus issues may delay and may result in an inability to invest in technologies.

Education

Many iwi, hapū and some marae have education strategies in place as well as scholarship support an career pathway options.

It will be important for these to change and adapt with the changing industry employment demands, as well as the changing technology and research demands. Māori organisations could be leaders in strategising to ensure their people are most equipped with and for the changes coming within the workforce in relation to this transition.

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Assessment Tables – Effects, Impacts and Economic Risks and Opportunities for Māori

MĀORI AS TREATY PARTNERS

Future 1 – Business as Usual

(What happens in a business as usual future?)

Future 2 – 100% Renewable Electricity

(What happens if New Zealand targets 100%

renewable electricity?)

Future 3 – Accelerated Electrification

(What happens if New Zealand targets

accelerated electrification of transport

and process heat?)

Actual Effects

1. Māori values and interests in freshwater and Te

Mana o Te Wai

This modelled future did not apply additional

restrictions on major hydro systems in terms of the

minimum flow. This will be a future that may not be

tenable for iwi Māori who seek improvement in water

quality (improved state of water bodies) and increase

in minimum flow.

Potential Effects and Impact

1. Commitment in Treaty Settlement legislation, and

2. Commitment under Te Mana o Te Wai

In combination of retaining the current 60%

threshold of hydro-electricity, it is proposed within

Actual Effects

1. Māori values and interests in freshwater and

Te Mana o Te Wai

2. Commitment in Treaty Settlement legislation,

and

3. Alignment with iwi strategies and iwi

management plans

As stated in previous column.

As part of the Treaty Settlement process there

have been established obligations by the Crown to

iwi which may be challenged or unable to be

fulfilled based on the policy objectives resulting

from these futures. An example of this would be

Waikato-Tainui’s right of first refusal of Huntly

Power Station which had considerable value

Actual Effects, Impact and Economic Risks and

Opportunities

1. Commitment in Treaty Settlement

legislation, and

2. Alignment with iwi strategies and iwi

management plans


Potential Effects, Impact and Economic Risks

and Opportunities

There may be an obligation for those fleet

owners to be first to transition vehicles to

assist with the second hand market. Many iwi

have considerable fleets to support their

businesses and organisations so this will have

an impact. But does provide an opportunity

119

the future that a level of certainty is necessary via

national direction, so that these existing hydro

generation activities continue to operate (obtain

consents).

There is a national commitment within the National

Policy Statement for Freshwater Management, Te

Mana o Te Wai, for communities and council to

determine the values of local freshwater

management units. There was substantial effort by

numerous interested parties (via LAWF and other

forums) in developing and acknowledging Te Mana o

Te Wai.

Similarly, there is Treaty settlement legislation229 that

both elevates the status and recognition of water

bodies and seeks a holistic approach towards its

management. Any policy measure (noting that the

focus is to 2035) that retains status quo in freshwater

use and management may not be welcomed by iwi

Māori.

during negotiation, but would have considerably

less value based on this future.

Many iwi management plans already seek to

address climate objectives or better their roles as

kaitiaki, but scenario three would require a

concerted effort by iwi as Treaty partners to

prioritise electrification in their workplaces, and

organisations. A goal to align strategic objectives

through these tools would be advantageous for

iwi and the nations objectives.

Potential Effects and Impact

4. Commitment in Treaty Settlement legislation,

and

5. Commitment under Te Mana o Te Wai

In addition to the previous column, if existing

consent conditions are retained for hydro

generation without appropriate consideration of

for iwi to access the savings in running costs

and potential subsidisation for early adopters.

229 As an example, the Waikato-Tainui Raupatu Claims (Waikato River) Settlement Act (2010).

120

Potential Effects, Impact and Economic Risks and

Opportunities

1. Certainty of Access to Freshwater

2. Opportunities for partnerships

Although no rights are being created in this scenario,

the search for certainty of access to freshwater to

ensure current/existing hydro generation activities

obtain consent (renewals) to operate may be seen by

iwi Māori as a right/ownership given to other parties

over a natural resource.

Additionally, if a centralised approach (macro-level)

to electricity generation is protected and pursued,

there are economic risks in, and economic

opportunities for, partnerships between iwi Māori

and hydro-electricity generators.

current freshwater management regimes, and the

enablement of wind, geothermal and solar

through policy directives, the recognition of Treaty

settlement legislation is important, as well as

Resource Management Planning documents.

There are a number of landscapes and locations

suitable for wind, geothermal and solar that would

be considered taonga, waahi tapu, or other forms

of ancestral connection that could potential be

affected and impacted upon. Many of these

locations are noted/protected in statutory

acknowledgements or other forms of statutory

protection.


Opportunities

6. Certainty of Access to Freshwater

7. Certainty of Access to locations for Wind and

Solar Generation

8. Opportunities for partnerships

Although no rights are being created in this future,

the potential for certainty of access to freshwater

being granted to generators, and potential

121

certainty to secure sites for wind and/or solar

generation, could be seen by iwi Māori as a

right/ownership given to other parties over

natural resources.

Additionally, if a centralised approach (macro-

level) to electricity generation is retained and

pursued, there are economic risks in, and

economic opportunities for, partnerships

between iwi Māori and electricity generators.

122

MĀORI AS KAITIAKI





100% renewable electricity?)




and process heat?)

Actual Effects

1. Fossil fuel generation decreases by 60% between

2019 and 2035

2. Māori values and interests in freshwater and Te

Mana o Te Wai

Reducing fossil fuel is deemed as a positive effect

resulting from the modelled future. Kaitiaki have

expressed their concerns regarding the effects and

impacts of fossil fuels.

This scenario did not apply additional restrictions on

major hydro systems in terms of the minimum flow. This

situation may not be tenable for kaitiaki who seek

improvement in water quality (improved state of water

bodies) and increase in minimum flow.

Actual Effects

1. Māori values and interests in freshwater and

Te Mana o Te Wai



Opportunities

1. Māori values and interests within New

Zealand’s landscapes

2. Participation in resource consenting

activities


Actual Effects

1. Fossil fuel generation decreases by 30%

between 2019 and 2035

This is deemed as a positive effect resulting

from the scenario, albeit the reduction is

smaller than business as usual. Kaitiaki have

expressed their concern regarding the

effects and impacts of fossil fuels.


and Opportunities

1. Transportation to marae (second home)

and uphold/perform role of kaitiaki

2. Management and disposal of waste

products (parts) of Electrical Vehicles

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Opportunities

1. Māori values and interests within New Zealand’s

landscapes

2. Participation in resource consenting activities

3. Primary focus on centralised (macro level) approach

The scenario promotes the wind and geothermal

because it is the cheapest form of generation, with

suggestions that enhanced or streamlined processing of

these electricity generating activities would enable cost-

effective and timely transition.

There are a number of landscapes and locations suitable

for wind, geothermal and solar that would be considered

taonga, waahi tapu, or other forms of ancestral

connection that could potential be affected and

impacted upon.

In addition to the location and positioning of wind farms

(turbines etc) is the transmission infrastructure to

connect energy with the national grid and communities.

Often these new (and existing) wind farms and

supporting infrastructure impact on landscapes and

environs significant to Māori.

The importance of reducing/retiring fossil

fuel light vehicles and introduction of

electrical vehicles were considered

appropriate ‘in principle’ to kaitiaki.

However, it was expressed that the ability to

travel to and from marae required

supporting infrastructure outside of urban

areas, as well as improved information and

knowledge regarding the life-cycle (and

waste management) of electrical vehicles,

and understanding the immediate and long-

term effects on the environment as a result.

Again this will offer the opportunity to

innovate and supporting funding streams

may enable marae to adapt quickly and take

advantage of potential savings available

through early uptake of technology.

124

Similarly, with renewable electricity activities in the

coastal marine environment such as wave or tidal, these

same projects may have impacts for Māori. The Marine

and Coastal Area Act 2011 provides for the recognition

of the customary rights of Māori in the coastal marine

area. Currently there are 385 customary marine title

applications with the Crown and 202 applications with

the New Zealand High Court. There remains a distinct

area of uncertainty in this area, but this means it is also

an area where innovation and partnerships can develop

and evolve.

125

MĀORI IN INDUSTRY






Future 3 – Accelerated

Electrification

(What happens if New Zealand

targets accelerated electrification

of transport and process heat?)

Potential Effects, Impact and Economic Risks and Opportunities

1. Access and use of freshwater for Māori primary industry

activities

2. Māori values and interests in geothermal

3. Local level economies (micro-level economies)

For those Māori participating in industry (agriculture, horticulture

or other) there is potential that access and use of freshwater may

be constrained by any policy (national and regional) that provides

certainty (or preferential access to freshwater) for hydro-electricity.

There is potential economic opportunity, and potential adverse

social/cultural effects (therefore potential economic risk), for Māori

who have values and interests in geothermal. Additionally, the

concept of ownership will need to be discussed with Māori.

Other opportunities for Māori can also be in new micro-scale and

locally generated and supplied electricity within Māori

Potential Effects, Impact and Economic

Risks and Opportunities

1. Access and use of freshwater for Māori

primary industries

2. Māori values and interests in

geothermal

3. Local level economies (micro-level

economies)


Potential Effects, Impact and

Economic Risks and Opportunities

1. Fossil fuel fleet vehicles

transitioning towards Electrical

Vehicles

Māori industry and corporations

(includes iwi organisations) will need

to respond to any policy requiring the

use of electrical vehicles.

126

communities. An example shared by a participant of current

activities in Ōmāio, demonstrated the economic, environmental,

cultural and social benefits of such approach for new entrants,

and/or existing Māori organisations.

127

MĀORI AS GENERAL POPULATION









and process heat?)


Opportunities

1. Fossil fuel generation decreases substantially

between 2019 and 2035

2. Over time, an increase in electricity prices

The reduction in use of fossil fuel is deemed as a positive

effect resulting from the scenario.

Also, the scenario indicates the likelihood of a much

larger increase in electricity costs for households, of

which Māori will feel a greater impact.


Opportunities

1. Elimination of fossil fuel generation altogether

2. Greatest increase in electricity prices proven to

have a greater impact for Māori

As stated in previous column, but this scenario

indicates the greater likelihood of a much larger

increase in electricity costs for households, of

which Māori will feel a greater impact.


and Opportunities

1. Fossil fuel generation decreases between

2019 and 2035

2. Greatest increase in electricity prices

proven to have a greater impact for Māori

3. Access to, and use of, electrical vehicles

As stated in previous column, but in the

context of electrical vehicles, there is

potential likelihood that Māori households

will not identify electrical vehicles as a

priority item, nor any potential

repercussions if there are compliance

requirements.

128

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