A keynote address delivered in Vancouver (British Columbia) in February 2014 at an International indigenous Energy Summit profiling the status of Maori development in New Zealand and the the state of government policy that is inhibiting Maori development especially in respect of related climate change and energy policy.
The paper then profile two practical Maori cases studies ( a large established 100% Maori owned geothermal development at Kawerau and a new renewable energy Maori community owned project in Te Whanau a Apanui at Omaio.
The paper ends with some of the lessons learned along the way that may provided guidance to other indigenous people of the world interested in these matters.
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Renewable energy and maori vancouver 2014
1. Energy (renewable) and Maori
Ko te whenua te waiu mo nga uri i whakatipuranga
(The land will provide sustenance for our future generations)
International Indigenous Energy Summit
Vancouver, British Columbia, Canada
January 28th 2014
Chris Karamea Insley | Managing Director
2. January 28th, 2014
Kia ora,
From the Maori people of New Zealand, we are pleased at the
opportunity to have one of ‘our own’ address the first nations
people of Canada and the United States and indeed, all other
indigenous people of the world here today on the important issue of
energy and wider related issues of sustainability of the
environment and natural resources, and changing global climate.
These changes will have an enduring impact on ‘our families for
generations to come’.
I would hope that from this discussion, there will arise
opportunities for us to collaborate practically together where we
have shared interests and, that at some point we may host you in
our country, ‘on our lands’ to advance the discussion we have
started together, today.
Yours sincerely
Dr. Apirana Mahuika
Chairman – Tribal (Iwi) leadership Group of New Zealand (Climate
Change)
Chairman – Te Runanganui O Ngati Porou
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3. Kia ora (I greet you) …..
• What is it like being Maori in New Zealand?
– Maori sustainability (kaitiakitanga) values framework
– Maori economy
– Current New Zealand political (policy) climate and energy settings
• Two Maori led Renewable energy case studies
– Tuwharetoa ki Kawerau (Maori Geothermal energy)
– Kaitiakitanga (Maori community-owned renewable energy)
• Our message and lessons to indigenous
people of the world
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4. Our commonalities and differences
• Canada and New Zealand have:
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Strong and long-standing relationship’s to Britain and the British monarchy;
Similar Parliamentary and democratic government systems;
Similar Westminster-based legal systems;
Similar financial and accounting systems and conventions;
Share a number of common markets;
Are both metric (unlike across the border);
English is the common language; and
And, are becoming very multi-cultural.
• But, we have in New Zealand, our differences as indigenous people;
– The Treaty of Waitangi – a formal relationship signed in 1840 between the Crown and
the Maori people of New Zealand
– Has been (and still is today) a source of tension between Maori people and the Queen’s
representative (s) – the Government.
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5. Some quick comparative metrics
Metrics
New Zealand
Maori
Variance
Population
4,242,048
526,281
12.4%
Median age
38
22
58%
79.1%
20.0%
59%
Median income
$28,500
$22,500
21%
Unemployment
7.1%
15.6%
54.5%
Percent adults with formal qualification
Source: 2013 New Zealand census.
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6. Contrasting Maori/Western
(Sustainability) Values Frameworks
Western Values Framework
Maori Values Framework
Economic
Strong over-riding driver of
decisions (NPV, IRR, Profitability
Index, Payback period etc.)
Strong
(NPV, IRR, Profitability Index,
Payback period but may accept
lower Return)
Profits
Owned individually and often lost
offshore
Owned communally (reinvested back
into whanau, communities, regions
and the Nation)
+ Social
Very low
(only what is prescribed in law)
Very strong
(What is prescribed in law is bare
minimum, whanau jobs, education,
health and well-being)
++ Environment
Very low
(only what is prescribed in law)
Very strong
(What is prescribed in law is bare
minimum, preservation of
Papatuanuki)
+++ Culture
Nil
Very strong
(Preservation of Te Reo, culture,
tikanga – our identity).
Planning horizon
1- 5 years
Intergenerational (100 years plus)
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7. Contrasting Maori/Western
(Sustainability) Values Frameworks
Western Values Framework
Maori Values Framework
Economic
Strong over-riding driver of
decisions (NPV, IRR, Profitability
Index, Payback period etc.)
Strong
(NPV, IRR, Profitability Index,
Payback period but may accept
lower Return)
Profits
Owned individually and often lost
offshore
Owned communally (reinvested back
into whanau, communities, regions
and the Nation)
+ Social
Very low
(only what is prescribed in law)
Very strong
(What is prescribed in law is bare
minimum, whanau jobs, education,
health and well-being)
++ Environment
Very low
(only what is prescribed in law)
Very strong
(What is prescribed in law is bare
minimum, preservation of
Papatuanuki)
+++ Culture
Nil
Very strong
(Preservation of Te Reo, culture,
tikanga – our identity).
Planning horizon
1- 5 years
Intergenerational (100 years plus)
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8. The Maori economy
(2010 NZ millions)
Base Maori
economy
Diversified Maori
economy
Source: BERL 2010
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11. Current New Zealand climate policy a disgrace
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Withdrawn from Kyoto Protocol
No NZ strategy to meet medium
term international emission
reduction targets
Knowingly allowed the carbon price
to collapse costing NZ tribes
$NZ600 million
Perverse incentives rewarding
polluters $NZ100’s millions
No incentives towards renewable
energy
But, there is a NZ election this year
Opposition parties have strong
emission reduction policies and
support renewables
A major National and International
issue for Maori tribes in 2014
Source: New Zealand Herald – December 19,2013.
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12. Case-study ONE
Only 100% tribal-owned Geothermal energy company – a large (and
growing) established company
Tuwharetoa ki Kawerau
Chris Karamea Insley
Independent Board Director
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13. Ko wai tatou? (Who are we?)
Our Maori (tribal) uniqueness
• Only 100% tribally owned
geothermal business in New
Zealand
• Only geothermal business
predominantly supplying process
heat;
• Largest geothermal process heat
supplying business in the world;
• Support local industry by
providing geothermal energy:
Our wood-processing customers
– for process drying, and
– for electricity
• for over 50 years
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15. 7 Year Asset Growth
(2005 to 2012)
Our performance and
growth plans
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Value ($NZ million)
• Treaty Settlement of
$NZ10 million
• Current net asset book
value $NZ35m
• Market value $NZ70m+
• 20% compound annual
growth rate (CAGR)
• Resource consent to
double take from steam
field
• Strategic plan to
continue growth
through diversification
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25
20
15
10
5
0
2005
2012
Value
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17. Case-study TWO
Flagship Maori community-owned Renewable energy – a start-up project
Kaitiakitanga | Caring for our Lands & Foreshore
Chris Karamea Insley
Chairman and Project Leader
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20. Guiding project principles and goals
Guiding principles:
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Project leadership comes from the community (not negotiable)
Never do anything that put’s our land at risk (mortgages)
Find and use the best New Zealand and international experts
All project intellectual property (IP) remains owned by the community
Project goals:
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Cheap power for the whanau (family) through an energy company owned by
the community
Energy security and a new revenue stream for the community
New and real jobs
Model project management approaches
To pilot the project towards sharing across 1,300 New Zealand marae
community (estimated $NZ500 million annual electricity bill)
Is real by the end of 2014.
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23. Top Commercial and Engineering teams
Legal/Commercial (Chapman Tripp)
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Possible Commercial Structure
Owned by marae (community)
Flexible to enable growth (new entities and
other marae)
Tax efficient
Dividends back to charitable Trust for
distribution to marae
Interface with New Zealand Maori Land law (Te
Ture Whenua Maori Land Act)
Expert Engineering Advisory Panel
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Provide independent expert engineering advice
(two years)
New Zealand and International expertise in
Renewables
Finalizing the business-case at the moment
– Short term house-hold projects by end of
2014
– Major capital investment projects (2 to 5
years)
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24. Our Partnership Strategy
Investment (4)
• The Hikurangi Foundation
• Tyndall Foundation
• Todd Foundations
• Banks
Engineering (4)
• Engineers Without Borders
• Institute of Professional Engineers of New
Zealand
• AECOM international
• Sinclair, Knight & Merz
Research (5)
• Auckland University
• Auckland Institute of Technology
• Canterbury University
• Scion Forest Research
• Motu Research
Legal (2)
• Chapman Tripp (Law)
• Maori Land Court
Government (3)
• Ministry for Energy
• Environment Bay of Plenty
• Opotiki District Council
Industry Associations (2)
• New Zealand Wind Energy Association
• New Zealand Bio-energy Association
Industry (2)
• TransPower (energy)
• Hancock Forest Management (forestry)
Maori (multiple)
• Other marae (communities)
• Other tribes
• Other indigenous people?
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25. Bringing it all together .....
Energy (renewable) and Maori
Summary
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26. But, biggest oil discovery in 50 Years?
$20 trillion shale oil find surrounding Coober-Pedy ‘can fuel Australia’
….
Source: Linc Energy: Released two reports in January 2013 with estimates
ranging between 3.5 to 233 billion barrels. Linc aims to drill six horizontal wells
(A$150-300m) to confirm its figures.
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27. Some takeaways ..
• Climate change, international policy response and growing consumer
pressure will force a shift away from fossil fuels ..
• Climate change is getting worse. The problem is not going away ..
• The the cost of renewable energy technologies is falling ..
• Renewable energy is a valid and legitimate long term investment option
for indigenous people ..
• Related clean-technology investment opportunity ..
• Scale investment with like-minded indigenous people of the world ..
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28. So what have we learned?
• Own your own projects – leadership (not negotiable) …
• Never compromise on your values – (not negotiable) this is your identity …
• Take a long term (intergenerational) view – (not negotiable) avoid the socalled experts who promote short-termism …
• Remember governments will come and go – avoid becoming dependent …
• Find the best experts in the world to help – but you lead and manage
them …
• Grow your own people – education, education, education …
• Strategic partnerships with those who share your values …
• Reach out and collaborate with other indigenous people of the world …
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Collaboration on International policy (law-making) to United Nations and other forum,
Joint and shared energy (and other) project-investment,
International Research and knowledge sharing,
Joint marketing and indigenous branding, and
Technology and Innovation.
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29. Call anytime …
Chris Karamea Insley
Principal and Managing Director
37 Degrees South limited | the strategy thought leaders
New Zealand
International phone: +64 21 972 782
Email: ckinsley@37ds.com
Skype: chris.karamea.insley
Website: www.37ds.com
LinkedIn: Chris Karamea Insley (send me a connect request)
Twitter: Chris Karamea Insley (follow me on twitter)
Facebook: Chris Karamea Insley (send me a friend request)
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Hinweis der Redaktion
Awarded Silver for innovation and engineering at the recent Association of Consulting Engineers NZ awards evening. Was the only Maori project entered
Notes:Climate change and the world governments policy response and growing consumer pressure will force a shift away from fossil fuels.Climate change is getting worse and worse by the year (day), it is not going away.The $US100’s of US billions invested by especially China and the US is driving down the cost of renewable energy technologies.The combination of integrated sustainability values and drivers and long term planning horizons make investment by Maori (and other indigenous people) in renewable energy a valid and legitimate long term investment option.As long term strategic investors, we as Maori see a large investment opportunity in the related clean-technology space across particularly our large primary sector and growing infrastructure value-chains.As Maori we recognize the potential to achieve scale-investment with like-minded indigenous people of the world.