The era of hypothetical warnings about the cost of green policies is over. We have now entered the brutal phase of reporting with empirical data on the economic devastation that the foolish “decarbonization” agenda has left in its wake. The latest exhibit in this gallery of ruin is New Zealand, where the so-called “green” transition has just claimed a victim: greenhouse growers of the nation's food production line.
Typically made of glass or plastic, greenhouses are used for indoor crop production. They allow growers to control parameters such as temperature and humidity, enabling year-round cultivation of vegetables, fruits, and flowers. Common food crops are tomatoes, cucumbers, and lettuce. Because carbon dioxide is a plant food, concentrations of the gas are sometimes elevated in greenhouses to accelerate growth.
All this requires a lot of energy, making greenhouses vulnerable to climate taxes on carbon dioxide emissions and bans on hydrocarbons, which drive fuel and electricity prices higher.
Government policies have tripled natural gas prices for Simon Watson of NZ Hothouse, a 25-year tomato producer in South Auckland, who says the very foundation of his business is crumbling.
“Twenty-five years ago, gas was abundant and we were told it was going to last forever,” said Watson. “It was a wonderful thing.”
But the good times are gone. Natural gas supplies are running out, and rising costs threaten to uproot the entire operation, disrupting hundreds of workers. Watson's two plants represent about 10% of New Zealand's 500 acres of covered crops in the upper North Island. He predicts many will have to cut back or close down because they can't afford to pay for gas.
Natural gas fuels far more than greenhouses. Watson points out that 80% to 90% of supermarket products — from meat and dairy to sugary drinks and liquor — rely on gas-intensive processes. The decline in natural gas reserves is pushing prices higher. The government and the energy industry have nine months to come up with a solution before the high energy demands of next winter make the situation catastrophic.
The gas crisis in New Zealand began with a 2018 ban on new permits for offshore exploration in the Taranaki region, curtailing growth in oil and gas production. The energy sector, historically a significant contributor to New Zealand’s economy, has faced reduced investment and exploration activity, impeding domestic gas production.
Recently reversing its ban on permits, the government has now allocated $200 million for offshore gas exploration. Similarly, New Zealand has withdrawn from an international group promoting the phase-out of fossil fuels, signaling a retreat from its climate policies. But it will take a while before these changes can yield results, leaving businesses in limbo.
This manufactured crisis reveals the true cost of climate virtue-signaling – not just in New Zealand but across the globe, where similar policies are damaging the agricultural sector.
Canadian greenhouse farmers face carbon tax bills that represent up to 40% of their energy costs. Added to this are carbon taxes that Canadians pay when buying fuel, electricity, and groceries.
Agriculture ranks among the global industries most dependent on fossil fuels, making it particularly susceptible to the harms of bad energy policy. Diesel fuel powers equipment, and propane runs grain dryers and heats barns. Nitrogen fertilizer, herbicides, and insecticides are synthesized from natural gas and oil byproducts.
The biggest irony is that the CO2 that climate activists demonize enhances photosynthesis and boosts agricultural productivity.
The self-inflicted pain of “decarbonization” is not accidental but by design — a way of forcing a decrease in energy use to satisfy a perverted, anti-human ideology that preaches an apocalyptic vision with no basis in science or common sense. The question is whether societies will recognize this path to destruction before it's too late to reverse course.
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