Cathrine Dyer & Bernard Hickey chat about the week's big climate news, including businesses' failure to meet voluntary emissions cutting goals, AI becoming an energy hog, & increasingly bumpy flights
“Google AI search!” As Bernard said, Google are stealing information from all over the world and putting journalists out of work. So when we have only AI to generate our ‘news’, just how distorted will it become?
Regarding the massive increase in electric demand for AI, as it’s the global companies using it and controlling our economies, who is going to challenge them to stop using so much?
That's exciting - that the world might be saved by accountants. Sounds like a possible step on the way to having to include environmental damage, and human damage in the deficit column of a ledger.
What is concerning is that while the trend towards climate accountability continues to build, NZ’s new Act and NZFirst led government pretends climate responsibility - including the Paris agreement- can be ignored.
Local climate reality versus Crown revenue collapse will be revealed on Thursday, when updated projections for revenue from ETS auction in 2024 are provided by Treasury. These were tracking $0.5 billion below forecast in March and the carbon price has fallen an additional $10/NZU since then. There is now a real possibility of all ETS auctions failing this year (and providing no revenue to the Govt for tax cuts); this is highlighted by the current forward price for NZUs sitting below the current ETS auction reserve price for every year out to 2029! Treasury's updated price will put a big dent in projected Crown revenue. Noting this was set aside for tax cuts, does this mean new borrowing to cover the $800 M shortfall if the auctions fail?
Local government in NZ affects a lot of future emissions by the decisions they make about transport, particularly spending on roading. They rely on Waka Kotahi for the funding of these roads. I think there is an effective way of changing spending to lower emissions by tying subsidies to decisions that reduce emissions. That would be a big change that I do not think is likely to happen but I think it would work.
Another change could be to add emissions reporting to Local government LTPs.
They are required to make 10 year plans and 30 year infrastructure strategies but the effect on emissions is not required in those plans. If it were, I think different choices could be made that would have different results for the future
“Google AI search!” As Bernard said, Google are stealing information from all over the world and putting journalists out of work. So when we have only AI to generate our ‘news’, just how distorted will it become?
Regarding the massive increase in electric demand for AI, as it’s the global companies using it and controlling our economies, who is going to challenge them to stop using so much?
The pleasure with which Bernard describes the enforcement of accounting standards as "deliciousss!" 😁🧮
AI will make AI less energy intensive
Todays grumpy dad joke bought to you by the HRV installers failing to turn up
The Jevon’s paradox will create more demand for the less energy intensive AI which will use more energy overall.
Enlightening. Thanks to both of you for sharing your knowledge and expertise, most of which is unavailable in msm.
https://www.icaew.com/insights/viewpoints-on-the-news/2024/may-2024/government-delivers-timeline-for-s1-and-s2-endorsement
Admittedly at a slow pace but article outlines to inclusion of sustainability reporting standards into financial statements in the UK.
Of course the NZ impact limited as there is no requirement for most NZ companies to publish annual accounts unlike most European countries.
That's exciting - that the world might be saved by accountants. Sounds like a possible step on the way to having to include environmental damage, and human damage in the deficit column of a ledger.
Excellent session, thx.
What is concerning is that while the trend towards climate accountability continues to build, NZ’s new Act and NZFirst led government pretends climate responsibility - including the Paris agreement- can be ignored.
Ralph Chapman (VUW)
Local climate reality versus Crown revenue collapse will be revealed on Thursday, when updated projections for revenue from ETS auction in 2024 are provided by Treasury. These were tracking $0.5 billion below forecast in March and the carbon price has fallen an additional $10/NZU since then. There is now a real possibility of all ETS auctions failing this year (and providing no revenue to the Govt for tax cuts); this is highlighted by the current forward price for NZUs sitting below the current ETS auction reserve price for every year out to 2029! Treasury's updated price will put a big dent in projected Crown revenue. Noting this was set aside for tax cuts, does this mean new borrowing to cover the $800 M shortfall if the auctions fail?
Local government in NZ affects a lot of future emissions by the decisions they make about transport, particularly spending on roading. They rely on Waka Kotahi for the funding of these roads. I think there is an effective way of changing spending to lower emissions by tying subsidies to decisions that reduce emissions. That would be a big change that I do not think is likely to happen but I think it would work.
Another change could be to add emissions reporting to Local government LTPs.
They are required to make 10 year plans and 30 year infrastructure strategies but the effect on emissions is not required in those plans. If it were, I think different choices could be made that would have different results for the future
As always Cathrine, your depth of knowledge and insight is incredible. A great session today. :)