Ecosecurities associate director Greg Fahey is passionate about his job, which involves travelling the globe to help companies source, develop and trade carbon credits.
The former Dunedin man, who still has family in the city, was in New Zealand to help EcoSecurities Group establish operations in this country after emissions trading scheme legislation was passed in September by the then Labour-led government.
The announcement by the new National-led Government that it was reviewing the scheme caused the company to delay its plans to establish in this country.
EcoSecurities had planned working with the New Zealand forestry sector, the first to come under the ETS regime.
Mr Fahey said the group had realised it was a risk to move to New Zealand but had taken confidence from National's pre-election statements around its commitment to an ETS and the scope of National's proposed amendments.
"The recent announcement to delay implementation of the ETS comes as a surprise and has prompted us to review our plans.
"However, we remain optimistic that an informed debate will see the Government reassert New Zealand as a leader in the international debate on climate change."
EcoSecurities hoped the Government would follow through with an ETS in a form not dissimilar to the current scheme, he said.
Overseas investors needed market certainty before committing large amounts of money to a new operation.
The group already operated in 29 countries and New Zealand was to be the 30th. EcoSecurities employed about 300 people worldwide.
The group had been operating for 10 years in the carbon trading and credits markets.
It had been involved in the development of many of the global carbon markets, including developing the world's first clean development mechanism (CDM) project to be registered under the Kyoto Protocol and the first to be issued with carbon credits.
Mr Fahey said the group believed that market mechanisms, such as cap and trade, not only provided the most cost-effective approach towards achieving real emission reductions, but could also drive innovation and investment in cleaner technology without hindering the development of the countries involved.
The development and sale of carbon credits from New Zealand forestry projects and overseas emission reduction projects had benefits for project developers, forest owners and the environment.
Last year, the global carbon trade was $US65 billion ($NZ120 billion). This year, it was likely to reach $US97 billion, not much less than New Zealand's gross domestic product, he said.
"It is a complex area but when you see the value of this trade, you can see it has substance. There are opportunities for New Zealand through investing in green technology and through research and development technology."
The lack of "informed debate" in New Zealand had disappointed Mr Fahey.
"There is no clear debate on what the issues are and where New Zealand sits in the scheme of things. In the United Kingdom, there is more understanding, helped by the Stern Review which was commissioned by the UK Government."
The Stern Review estimated that climate change issues hurt global GDP by 5% a year through food production, water shortages and coastal flooding.
The cost of action was put at 1% of global GDP each year.
By delaying an ETS, New Zealand was at risk of being left behind by Australia and the United States, both of which had governments committed to reducing emissions.
US President-elect Barack Obama had issued a message strongly reinforcing a previous commitment to cap US emissions and work towards reducing them.
Australian Prime Minister Kevin Rudd had signed the Kyoto Protocol which showed New Zealand was not "sticking its neck out" by being an early adopter, Mr Fahey said.
There was also a danger that New Zealand might not attend a conference in Copenhagen next year at which the successor to the Kyoto Protocol would be discussed.
"There is a real benefit for New Zealand to get there and have a vote. The signals sent to the international community by revisiting the scheme could suggest doubts about climate change."
An argument was being promoted that New Zealand should wait for Australia and follow its lead. However, what was not being talked about was the difference in carbon profiles of the two countries.
Also, some commentators suggested Australia was already cutting and pasting some of New Zealand's legislation into its own.
The "food miles" debate was raging in the United Kingdom, and that could affect New Zealand, he said.
Well-placed lobbyists were trying to denigrate New Zealand products because of the issue and this country's case would not be helped by the review of the ETS.
Tourism was another area that could be hurt, although Air New Zealand was doing a good job in promoting itself as a responsible airline through reducing carbon emissions.
EcoSecurities would now watch and wait as the emissions trading scheme review took place.
Fahey file
• Greg Fahey (32). Formerly of Dunedin.
• Associate director and corporate counsel for EcoSecurities Group Plc based in the company's UK office in Oxford.
• Mr Fahey studied law at the University of Otago and has since worked as a corporate lawyer with international law firms in both New Zealand and London and with ERM, one of the world's largest environmental management consultancies.
• He has worked with EcoSecurities since last year, focusing on a range of strategic growth opportunities for the group. Areas he works in include structured carbon transactions, project financing, investment and merger and acquisition activities. He was leading the formation of the New Zealand business.
