The Labour-led Government has been working hard to ensure that New Zealand is more sustainable in the widest sense, including economically and socially.

Central to the ability of all nations to make economic and social progress in the 21st century is achieving environmental sustainability, particularly to meet the challenge of climate change.

In September, I had the pleasure of launching one of the results of the work we have been doing in this important area, our Emissions Trading Scheme. A few weeks later I launched the New Zealand Energy Strategy and the New Zealand Energy Efficiency and Conservation Strategy.

These strategies will complement the Emissions Trading Scheme, which is comprehensive in that it will cover all sectors of the economy and all greenhouse gases.

Putting a price on emissions through the scheme will, over time, change investment and consumption patterns, so that we develop an economy and lifestyle with lower emissions.

But we have also recognised that for the scheme to be sustainable it must be designed to be fair both between sectors and to consumers.

That is why we have decided to phase the entry of sectors into the scheme and have also committed to providing low and modest income families with assistance to adjust to the higher electricity costs which arise from putting a price on carbon.

We believe that taking action is not only the right thing to do; it is the smart thing to do.

New Zealand has an enviable reputation as a country with a clean and green environment, high achieving and honest people, an inclusive community, and a commitment to peace and justice.

But we are also an economy a long way away from most of our markets.

So our international reputation and positioning is priceless. Failure to protect our reputation for being clean and green would pose a considerable economic risk to New Zealand.

That is why I have set out the challenge to our nation to become the first truly sustainable nation on earth – and to dare to aspire to be carbon neutral.

To that end we have set some medium and long-term objectives and targets.

• By 2025 our target is to have ninety per cent of electricity generated from renewable sources.
• By 2040 our target is to reduce by half per capita emissions from transport.
• We aim to be one of the first countries to introduce electric vehicles widely, and;
• By 2020 we aim to achieve a net increase in forest area of 250,000 hectares.

Achieving those targets will move us significantly towards our vision of New Zealand becoming carbon neutral.

With this programme, our electricity sector could reasonably be seen as carbon neutral by 2025, the rest of our stationary energy sector by 2030, and our transport sector by 2040.

To help achieve these goals, the government has launched two important strategies which will complement the Emissions Trading Scheme and which are aimed at making New Zealand more sustainable, and at ensuring secure energy supply.

The New Zealand Energy Strategy and the New Zealand Energy Efficiency and Conservation Strategy are the Government's roadmaps to a resilient, sustainable, low emissions energy system.

They are important steps towards our aspiration for a carbon neutral New Zealand.

The New Zealand Energy Strategy puts our country on an ambitious but achievable pathway towards greater sustainability, and a secure energy future.

It sets out how we will deliver secure energy at affordable prices to support economic development, while at the same time being environmentally responsible and reducing carbon emissions from our energy production and use.