Appendix: Detailed results

Assessing New Zealand’s climate change response with ClimateScanner.

This Appendix describes the results of our ClimateScanner assessment in detail. We provide a rating for each item and an explanation of our assessment. The component score is the average of the ratings of all items within a component, which may range from 0 to 10.

Governance

Category: Institutionalisation

Component: G.1 Legal and Regulatory Framework (component score: 10)*

Item Criteria Rating Comment
A. Existence of legislation framework There is a climate change legal and regulatory framework. It may include an overarching law and/ or a legal and regulatory framework addressing general aspects of climate change. A

New Zealand has a comprehensive legislative framework to address climate change. Therefore, we have given this item a rating of “advanced implementation”.

The main piece of legislation is the Climate Change Response Act 2002. New Zealand also has several pieces of secondary legislation.

Related information

Climate Change Response Act 2002

See a list of secondary climate change legislation at legislation.govt.nz

B. Consistency with Paris Agreement Climate laws, regulations, and other official government documents and instruments are consistent with the Paris Agreement. A

New Zealand’s legislative framework is consistent with the Paris Agreement because the Climate Change Response Act 2002 was updated to incorporate the Paris Agreement and now includes multiple references to it. Therefore, we have given this item a rating of “advanced implementation”.

References to the Paris Agreement in the Act include the following:

  • Section 3(1) of the Act describes the Act’s purpose as providing a framework for New Zealand to meet its obligations under the Paris Agreement.
  • Schedule 2A of the Act is the complete Paris Agreement.

Related information

Schedule 2A of the Climate Change Response Act 2002

Section 3 of the Climate Change Response Act 2002

C. Mainstreaming Climate laws, regulations, and other official government documents and instruments provide for mainstreaming climate change aspects into national planning instruments and sectoral plans. A

The Climate Change Response Act 2002 explicitly provides for mainstreaming climate change response actions into national planning instruments and sectoral plans. Therefore, we have given this item a rating of “advanced implementation”.

In particular, the Act requires that:

  • emissions budgets be set (see section 5X of the Act);
  • an Emissions Reduction Plan be prepared, which must include a multi-sector strategy to meet emissions budgets and sector-specific policies to “reduce emissions and increase removals” (see section 5ZG(3) of the Act); and
  • a National Climate Change Risk Assessment be prepared (see section 5ZP of the Act), as well as a National Adaptation Plan in response to the risk assessment. The National Adaptation Plan must include strategies, policies, and proposals for meeting government objectives for adapting to the effects of climate change (see section 5ZS of the Act).

As well as the legislative requirements, there is a Cabinet requirement that central government agencies estimate and disclose the greenhouse gas emission implications when:

  • decreasing greenhouse gas emissions is a key policy objective; or
  • the direct impact on emissions is likely to be equal to or above:
    • 0.5 million tonnes CO2-e within the first 10 years; or
    • 3 million tonnes of CO2-e within the first 30 years.

This requirement applies to individual policies and initiatives, but the assessment is also applied to the whole Government Budget each year.

Related information

Section 3 of the Climate Change Response Act 2002

Resource Management Act 1991

Ministry for the Environment (2023), Secondary briefing to the incoming minister: Climate Change, at environment.govt.nz

Ministry for the Environment, “Climate implications of policy assessment: guidance on Cabinet requirement for central government agencies”, at environment.govt.nz

Cabinet Office Circular (July 2022), CO (20) 3: Climate Implications of Policy Assessment Requirements, at dpmc.govt.nz

Component: G.2 Government structure (component score: 9.16)

Item Criteria Rating Comment
A. Existence of a national government structure There is a national government structure to address climate change issues. Entities have responsibilities assigned to them for climate change activities, including leading, co-ordinating, implementing, and monitoring these activities, and providing transparency. Therefore, we have given this item a rating of “advanced implementation”.

The main entities responsible for climate change activities are:
  • the Ministry for the Environment, which is the lead agency on environmental matters;
  • the Climate Change Commission, which provides independent evidence-based advice to the Government, and monitors and reports on the Government’s progress towards its emissions reduction and adaptation goals; and
  • the Climate Change Chief Executives Board, which is an interdepartmental executive board that provides collective oversight and governance by the chief executives of government agencies with significant roles in mitigating and/or adapting to climate change.
Related information

Ministry for the Environment, “Who does what on the environment”, at environment.govt.nz

Ministry for the Environment (2023), Briefing for Incoming Ministers – Environment, Climate Change and RMA Reform, at environment.govt.nz

Section 3 of the Climate Change Response Act 2002

Ministry for the Environment (2023), Climate Change Chief Executives Board: Statement of intent 2023–2027, at environment.govt.nz

The Treasury, “Climate Change Chief Executives Board”, at treasury.govt.nz

Public Service (Climate Change Chief Executives Board) Order 2022

The Treasury, “Interdepartmental executive boards”, at treasury.govt.nz
B. Responsibilities defined Responsibilities for leading, co-ordinating, implementing, monitoring, and giving transparency to national responses to climate change are clearly defined across public organisations A

The three main entities responsible for climate change activities have clear roles and responsibilities that are set out in legislation and Cabinet decisions, and through the Budget process. Therefore, we have given this item a rating of “advanced implementation”.

The Ministry for the Environment is the Government’s main adviser on climate change. The Ministry receives annual funding for policy advice, reporting, operations, and stewardship of matters relating to climate change through the Budget process. The Ministry assists the Minister of Climate Change with the Minister’s responsibilities under the Climate Change Response Act 2002.

Part 1A of the Act sets out the purpose of the Climate Change Commission. It is:

  • to provide independent expert advice to the Government on mitigating climate change (including through reducing emissions of greenhouse gases) and adapting to the effects of climate change; and
  • to monitor and review the Ggovernment’s progress towards its emissions reduction and adaptation goals.

Part 1A of the Act also includes more detail about the Commission’s functions, the reports the Commission must prepare, and the matters the Commission must consider.

An Order in Council sets out the purpose of the Climate Change Chief Executives Board. It is to:

  • co-ordinate the implementation of New Zealand’s Emissions Reduction Plan, which includes the implementation of cross-agency actions and strategies
  • monitor and report on overall progress towards achieving the Emissions Reduction Plan, including sector sub-targets;
  • provide advice to Ministers about the Emissions Reduction Plan; and
  • carry out the existing functions of the Climate Change Chief Executives Board as established by Cabinet.

A Cabinet decision in August 2022 brought the National Adaptation Plan within the scope of the Board, giving it responsibility for overseeing the plan’s overall implementation, periodically assessing its sufficiency, reporting to the Prime Minister, and advising whether course corrections are needed.

Related information

Parliamentary Commissioner for the Environment (2023), How ministers and officials developed the first emissions reduction plan — and how to do it better next time at pce.parliament.nz

Ministry for the Environment, “Who does what on the environment” at environment.govt.nz

Ministry for the Environment (2023), Implementing Aotearoa New Zealand’s first emissions reduction and national adaptation plans at environment.govt.nz

Ministry for the Environment (2023), Briefing for Incoming Ministers – Environment, Climate Change and RMA Reform at environment.govt.nz

Section 3 of the Climate Change Response Act 2002

Public Service (Climate Change Chief Executives Board) Order 2022

Climate Change Commission (2023), Briefing to the Incoming Minister of Climate Change Hon Simon Watts at climatecommission.govt.nz

C. No gaps or overlaps In the structure of responsibilities for leading, co-ordinating, implementing, monitoring, and giving transparency to national responses to climate change, such responsibilities are well defined, with no gaps or overlaps. A

Our assessment of the roles and responsibilities of the main entities responsible for climate change activities has not identified any significant gaps in co-ordinating, leading, monitoring, implementing, and giving transparency to national responses.

Both the Climate Change Commission and the Climate Change Chief Executives Board have responsibilities for monitoring and reporting. However, the Climate Change Commission is required to monitor and report independently, so we do not consider this an overlap in responsibilities.

Therefore, we have given this item a rating of “advanced implementation”.

Related information

Ministry for the Environment (2023), Briefing for Incoming Ministers – Environment, Climate Change and RMA Reform, at environment.govt.nz

New Parts 1A to 1C inserted, Climate Change Response (Zero Carbon) Amendment Act 2019

Public Service (Climate Change Chief Executives Board) Order 2022

Ministry for the Environment (2023), Secondary briefing to the incoming minister: Climate Change, at environment.govt.nz

Climate Change Chief Executives Board (2023), Briefing to incoming Ministers 2023, at environment.govt.nz

D. Leadership There is a government body at the
national level with responsibilities for leading, steering and co-ordinating national responses to climate change, and with authority to mobilize other government bodies.
I

The Climate Change Chief Executives Board fulfils this role. Interdepartmental executive boards are set up to “align and co-ordinate strategic policy, planning, and budgeting activities for two or more departments with responsibilities in a subject matter area. This helps support those departments to deliver on relevant cross-departmental initiatives.”

As well as operating at the chief executive level, the Climate Change Chief Executives Board has working groups at the deputy chief executive and operational (director/ manager) levels.

The Climate Change Chief Executives Board is made up of the chief executives of government agencies with significant roles in mitigating and/or adapting to climate change. Although each chief executive can mobilise their own department, the Board does not have the ability to mobilise any other government bodies.

Therefore, we have given this item a rating of “intermediate implementation”.

Related information

Climate Change Chief Executives Board (2023), Briefing to incoming Ministers 2023, at environment.govt.nz

The Treasury, “Interdepartmental executive boards”, at treasury.govt.nz

Category: Strategy

Component: G.3 Long-term strategy (component score: 4.44)

Item Criteria Rating Comment
A. Long-term strategy The country submitted their climate-related long-term strategy (LTS) to the UNFCCC, as required by the Paris Agreement (art. 4 (19)), or there is an official government document that establishes a national long-term strategy to address climate change. I

New Zealand submitted its long-term low-emissions development strategy to the United Nations Framework Convention on Climate Change in November 2021. The document sets out how New Zealand plans to use a series of emissions budgets and Emissions Reduction Plans to meet its long-term emissions reduction targets. It also sets out a series of high- level sector plans.

However, the strategy has not been updated since 2021, and we have not seen any evidence of plans to update it. We are aware that some parts of this strategy, such as the sector plan, might now be out of date. However, we understand that the emissions reduction plans provide a more up to date representation of New Zealand’s emissions reduction strategy.

Therefore, we have given this item a rating of “intermediate implementation”.

Related information

United Nations Framework Convention on Climate Change, “Long-term strategies portal”, at unfccc.int

Ministry for the Environment (2021), Transitioning to a low-emissions and climate- resilient future: Aotearoa New Zealand’s long-term low-emissions development strategy, at environment.govt.nz

B. Alignment to Nationally Determined Contribution The long-term strategy is aligned with the current Nationally Determined Contribution. I

The long-term strategy references the updated Nationally Determined Contribution and explains that this will be met through a combination of domestic and international mitigation actions.

New Zealand’s current Nationally Determined Contribution is to reduce net greenhouse gas emissions to 50% below gross 2005 levels by 2030.

New Zealand also has domestic commitments, including long-term emissions reduction targets set in the Climate Change Response Act 2002 and intermediate targets set through the emissions budgets, each of which covers five years.

It is difficult to see how these different commitments are aligned because they are expressed differently and cover different time periods. For example, the emissions budgets set a limit on total emissions, but the other commitments set a target for the percentage that emissions will be reduced by.

The Nationally Determined Contribution is also more ambitious than the domestic commitments. However, the Nationally Determined Contribution can be met through a mix of domestic and international mitigation actions, while the domestic targets must be met as much as possible through domestic actions.

The Government has recognised that it will be a challenge to meet the emissions reduction target in the Nationally Determined Contribution and that further consideration is needed, with additional announcements to be made in the future. However, we have not seen a detailed plan or strategy for how this will be achieved.

Because it is currently unclear how the emissions reductions required by the Nationally Determined Contribution will be achieved, we have given this item a rating of “intermediate implementation”.

Related information

New Zealand’s first Nationally Determined Contribution (updated November 2021), at unfccc.int

Ministry for the Environment (2021), Transitioning to a low-emissions and climate- resilient future: Aotearoa New Zealand’s long-term low-emissions development strategy, at environment.govt.nz

Ministry for the Environment (2023), Nationally Determined Contribution strategy (proactive release), at environment.govt.nz

C. Interlinkages with Sustainable Development Goals (SDGs) The long-term strategy considers the interlinkages between SDG 13 – Climate Action and the other SDGs A

Although the actions in the Emissions Reduction Plan align to some extent with the Sustainable Development Goals, there are no specific references to the Sustainable Development Goals in either the first Emissions Reduction Plan or in the second Emissions Reduction Plan’s discussion document.

Therefore, this item does not meet the criteria for a rating of any higher than “no implementation”.

Related information

Ministry for the Environment (2024), New Zealand’s second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

Controller and Auditor-General (2021), The Government’s preparedness to implement the sustainable development goals, at oag.parliament.nz

Component: G.4 Risk Management (component score: 10)

Item Criteria Rating Comment
A. Risk mapping There is a mapping of climate change risks, produced or updated in the last five years. A

The Climate Change Response Act 2002 requires a National Climate Change Risk Assessment to be produced at least every six years.

New Zealand’s first National Climate Change Risk Assessment gives a national picture of how New Zealand might be affected by hazards related to climate change.

The first National Climate Change Risk Assessment was published in August 2020, which is less than five years ago.

The Minister of Climate Change must then prepare a National Adaptation Plan in response to, and within two years of, the National Climate Change Risk Assessment. The first National Adaptation Plan was published in August 2022.

Therefore, this item meets the criteria for a rating of “advanced implementation”.

Related information

Section 5ZP of the Climate Change Response Act 2002

Section 5ZS of the Climate Change Response Act 2002

Ministry for the Environment (2020), National Climate Change Risk Assessment for Aotearoa New Zealand: Main report – Arotakenga Tūraru mō te Huringa Āhuarangi o Āotearoa: Pūrongo whakatōpū, at environment.govt.nz

B. Interface with science The government largely bases the identification of risks on scientific evidence. A

Development of the National Climate Change Risk Assessment followed a comprehensive and rigorous process based on scientific and other evidence. Therefore, we have given this item a rating of "advanced implementation".

A diverse multidisciplinary team of academics and consultants carried out the National Climate Change Risk Assessment. This includes experts in the domains of governance, economy, human, built environment, and the natural environment.

There was also an extensive team of technical advisors and reviewers.

The first step in the National Climate Change Risk Assessment was to develop a risk assessment framework. This set out, in detail, how climate change risks would be assessed and the information sources that would be used.

To support the National Climate Change Risk Assessment, a method report and a technical report were also published. The method report explains the methodology that was followed, and the technical report provides further detail on the risk assessment findings, including the relevant evidence base.

The technical report cites nearly 30 pages of references that were used to complete the risk assessment. These references include a range of scientific, economic, and social evidence.

Related information

Ministry for the Environment (2020), National Climate Change Risk Assessment for Aotearoa New Zealand: Main report – Arotakenga Tūraru mō te Huringa Āhuarangi o Āotearoa: Pūrongo whakatōpū, at environment.govt.nz

Ministry for the Environment (2020), National Climate Change Risk Assessment for New Zealand – Arotakenga Tūraru mō te Huringa Āhuarangi o Aotearoa: Method report – Pūrongo whakararangi, at environment.govt.nz

Ministry for the Environment (2020), National Climate Change Risk Assessment for New Zealand – Arotakenga Tūraru mō te Huringa Āhuarangi o Āotearoa: Technical report – Pūrongo whaihanga, at environment.govt.nz

Ministry for the Environment (2019), Arotakenga Huringa Āhuarangi: A Framework for the National Climate Change Risk Assessment for Aotearoa New Zealand, at environment.govt.nz

Ministry for the Environment (2022), Urutau, ka taurikura: Kia tū pakari a Aotearoa i ngā huringa āhuarangi Aotearoa New Zealand's first national adaptation plan, at environment.govt.nz

C. Climate risks in planning instruments National long- and medium-term planning instruments that address climate change incorporate climate risks. A

The legislative framework requires the main long- and medium-term planning instruments to be based on an assessment of climate change risks. Therefore, we have given this item a rating of "advanced implementation".

The Climate Change Response Act 2002 requires the Climate Change Commission to prepare a National Climate Change Risk Assessment every six years.

The first National Climate Change Risk Assessment was published in August 2020. It discusses the risks that uncertainties about climate science, future socioeconomic scenarios, and global and national policy settings pose to New Zealand.

The Act also requires the Minister of Climate Change to produce a National Adaptation Plan in response to, and within two years of, each National Climate Change Risk Assessment. The first National Adaptation Plan was published in August 2022.

Related information

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

Ministry for the Environment (2020), National Climate Change Risk Assessment for New Zealand: Main report – Arotakenga Tūraru mō te Huringa Āhuarangi o Āotearoa: Pūrongo whakatōpū, at environment.govt.nz

Section 5ZP of the Climate Change Response Act 2002

Section 5ZQ of the Climate Change Response Act 2002

Section 5ZS of the Climate Change Response Act 2002

Category: Co-ordination

Component: G.5 Horizontal and vertical co-ordination (component score: 6.66)

Item Criteria Rating Comment
A. Horizontal co-ordination mechanisms There are institutional mechanisms (e.g., commissions, councils, committees, systems, processes, protocols, etc.) to enable horizontal co-ordination among national government bodies on climate change. A

The Climate Change Chief Executives Board is the key horizontal co-ordination mechanism. The Board is responsible to the Prime Minister and is made up of chief executives of government agencies with significant roles in mitigating and/or adapting to climate change.

In its statement of intent, the Board states that one of its functions is to co-ordinate the implementation of cross-agency actions and strategies in the Emissions Reduction Plan and National Adaptation Plan.

At the ministerial level, the Climate Priorities Ministerial Group is made up of senior government ministers. It is chaired by the Minister of Climate Change.

Although the Minister of Climate Change has the statutory responsibility to meet climate change goals, this is held on behalf of the Executive. Many actions that impact this responsibility sit with other portfolios. This is why the cross-ministerial group is critical for ensuring that New Zealand meets its climate change goals.

The criteria asks whether institutional mechanisms are in place, whether these are at the highest level of government, and whether the most important organisations are represented. Therefore, although issues with how these mechanisms are functioning have been raised, we have given this item a rating of "advanced implementation" because the Climate Change Chief Executives Board and the Climate Priorities Ministerial Group meet the criteria for operating at the highest levels of government and involving the most relevant organisations or individuals.

Related information

Climate Change Chief Executives Board (2023), Statement of intent 2023-2027, at environment.govt.nz

Ministry for the Environment, "Climate Change Chief Executives Board", at environment.govt.nz

Parliamentary Commissioner for the Environment (2023), How ministers and officials developed the first emissions reduction plan — and how to do it better next time, at pce.parliament.nz

"Climate Priorities Ministerial Group Meeting Pack 25 March 2024", at environment.govt.nz

B. Dynamic of horizontal interaction Commissions, councils, and committees for horizontal co-ordination have a working dynamic that allows regular interaction of members. A

Both the Climate Change Chief Executives Board and the Climate Priorities Ministerial Group meet regularly. The Climate Change Chief Executives Board has various interagency sub-groups that represent different levels of officials. The sub-groups meet regularly.

Therefore, we have given this item a rating of "advanced implementation".

Related information

"Climate Change Chief Executives Board released material", at environment.govt.nz

"Climate Change Chief Executives Board meeting papers Wednesday 28 February 2024", at environment.govt.nz

C. Vertical co-ordination mechanisms There are institutional mechanisms (e.g., commissions, councils, committees, systems, mechanisms for joint policy formulation and implementation across levels of government, etc.) that enable vertical co-ordination. E

Local government is at the forefront of climate change issues that affect local communities, such as sea level rise, coastal erosion, and the impacts of extreme weather events. Local authorities are responsible for many mitigation and adaptation actions, such as building flood protection. Several local authorities are taking steps to measure and reduce their greenhouse gas emissions.

Some parts of local government actively engage with central government on climate change adaptation and mitigation through membership institutions Local Government New Zealand (representing some councils) and Taituarā – Local Government Professionals Aotearoa.

The local government sector is actively involved with central government in law reform processes and implementation (for example, the previous Government's Resource Management Act and three waters reforms).

More recently, a local government emissions reduction advisory group supported central government's consideration of the second Emissions Reduction Plan. Central and local government work together to help communities recover from extreme weather events.

That said, we are not aware of a formal institutional mechanism in the form of a law, regulation, or agreement for joint policy formulation or implementation for central and local government to take climate action.

Therefore, we have given this item a rating of "early implementation".

Related information

Organisation for Economic Co-operation and Development (2023), "Climate adaptation: Why local governments cannot do it alone", OECD Environment Policy Papers, No. 38, OECD Publishing, Paris, at oecd.org

Ministry for the Environment (2022), "Climate change and local government: What the national adaptation plan means for you", at environment.govt.nz

Ministry for the Environment (2021) He kupu ārahi mō te aromatawai tūraru huringa āhuarangi ā-rohe / A guide to local climate change risk assessments, at environment.govt.nz

Section 66 of the Resource Management Act 1991

Controller and Auditor-General (2020), Insights into local government: 2019, Part 5, at oag.parliament.nz

Department of the Prime Minister and Cabinet, "Cyclone Recovery Unit", at dpmc.govt.nz

D. Dynamic of vertical interaction Commissions, councils, and committees for vertical co-ordination have a working dynamic that allows regular interaction of members. E

Local government actively engages with central government through its membership institutions. The local government sector is actively involved with central government in law reform processes and implementation. Central and local government also work together to assist community resilience and recovery from extreme weather events.

The working dynamic between central and local government involves frequent interaction. However, because there is no formal institutional mechanism, we have given this item a rating of "early implementation".

Related information

Te Kāwantatanga ā-Rohe i Aotearoa – Local government in New Zealand, "Climate change - LGNZ", at lgnz.co.nz

Component: G.6 Stakeholder engagement (component score: 10)

Item Criteria Rating Comment
A. Existence of participation mechanisms There are institutional mechanisms in place to allow the participation of stakeholders in the design and implementation of climate strategies, plans, and policies, in a consistent way. A

The Climate Change Response Act 2002 requires the Climate Change Commission and the government to adequately consult with the public on the Emissions Reduction Plan.

The Minister must also carry out public consultation on the draft National Adaptation Plan. This includes consultation with sector representatives, affected communities, and iwi and Māori.

Therefore, we have given this item a rating of "advanced implementation".

Related information

Section 5N of the Climate Change Response Act 2002

Section 5ZI of the Climate Change Response Act 2002

Section 5ZS of the Climate Change Response Act 2002

B. Representativeness The institutional mechanisms observe the representation of the following sectors: civil society, private sector, and academia. A

For the development of the first Emissions Reduction Plan, the Government engaged with Māori, iwi, hapū, Pacific peoples, business and industry, academia, local government and non-governmental organisations, and youth. The purpose of this engagement was to inform these significantly interested and affected groups about the process for developing the Emissions Reduction Plan.

The Government consulted with the public on its second Emission Reduction Plan in July and August 2024. Its engagement approach included consulting with:

  • the Climate Business Advisory Group;
  • the Local Government Emissions Reduction Advisory Group; and
  • the Climate Youth Advisory Group.

The second Emissions Reduction Plan's discussion document covers the relevant issues related to climate change. It includes a mix of policies, confirmation of previously announced initiatives, and the discontinuation of some policies from the first Emissions Reduction Plan.

There are also webinars available for different groups, including Māori and youth, and on different sectors, such as forestry, transport, and waste.

The National Adaptation Plan was also publicly consulted on, as well as the system for managed retreat and emerging issues relating to home insurance for flood risk.

As is standard practice in New Zealand, the Government publishes a summary of the submissions it receives. This was done for the first Emissions Reduction Plan and the National Adaptation Plan. The Ministry for the Environment has indicated that it will publish a summary of submissions for the second Emissions Reduction Plan after the plan has been published.

We have given this item a rating of "advanced implementation" because of the range of stakeholders involved.

Related informatio

Ministry for the Environment (2022), Emissions reduction plan: Summary of submissions, at environment.govt.nz

Cabinet paper (September 2021), "Public consultation on the emissions reduction plan: Transitioning to a low-emissions and climate resilient future", at environment.govt.nz

Ministry for the Environment, "Help Shape Our Climate Future: Consultation on New Zealand's Second Emissions Reduction Plan now open", at environment.govt.nz

Ministry for the Environment, "New Zealand's second emissions reduction plan – Citizen Space", at environment.govt.nz

Ministry for the Environment (2022), National adaptation plan: Summary of submissions, at environment.govt.nz

Parliamentary Commissioner for the Environment (2023), How ministers and officials developed the first emissions reduction plan — and how to do it better next time, at pce.parliament.nz

"Climate Change Chief Executives Board meeting pack 29 March 2023" page 68, at environment.govt.nz

C. Dynamic of interaction The institutional mechanisms are implemented in a way that allows regular interaction between government and other stakeholders. A

Regular engagement with relevant stakeholders is possible because of the legislative requirements for the Government and the Climate Change Commission to consult on the Emissions Reduction Plans and National Adaptation Plans, and for the Commission to provide advice to the Government on the emissions budget.

Therefore, we have given this item a rating of "advanced implementation".

Related information

Ministry for the Environment, "New Zealand's second emissions reduction plan – Citizen Space", at environment.govt.nz

Ministry for the Environment (2022), Emissions reduction plan: Summary of submissions, at environment.govt.nz

Section 5ZI of the Climate Change Response Act 2002

Section 5ZS of the Climate Change Response Act 2022

Category: Accountability

Component: G.7 Inclusiveness (component score: 10)

Item Criteria Rating Comment
A. Identification of vulnerable groups The government has identified groups that are most vulnerable to the impacts of climate change and their needs in terms of public policies. A

The Government has identified the groups most vulnerable to the impact of climate change and their needs in terms of public policies. Therefore, we have given this item a rating of "advanced implementation".

In mitigating distributional impacts, the Government has a particular obligation under section 3A of the Climate Change Response Act 2002 to recognise and mitigate the impacts on iwi and Māori.

The National Climate Change Risk Assessment identified other vulnerable groups. These were people living in poverty, ethnic communities, disabled people, the elderly, women, and children.

The National Adaptation Plan also recognises the risks to communities and a range of minorities, such as ethnic and rainbow communities.

Related information

Section 3A of the Climate Change Response Act 2002

Ministry for the Environment (2020), National Climate Change Risk Assessment for Aotearoa New Zealand: Main report – Arotakenga Tūraru mō te Huringa Āhuarangi o Āotearoa: Pūrongo whakatōpū, at environment.govt.nz

Ministry for the Environment (2022), Urutau, ka taurikura: Kia tū pakari a Aotearoa i ngā huringa āhuarangi Aotearoa New Zealand's first national adaptation plan, at environment.govt.nz

B. Inclusion in decision-making process There are mechanisms in place for including affected communities and vulnerable populations as part of the decision-making process in the design and implementation of climate strategies, policies, and plans. A

The Climate Change Response Act 2002 has requirements for including affected communities and vulnerable populations as part of the decision-making process for, and the design of, the National Adaptation Plan.

The Act also requires any Emissions Reduction Plan to include a strategy to mitigate the impacts that reducing emissions and increasing removals will have on employees and employers, regions, iwi and Māori, and wider communities. Therefore, we have given this item a rating of "advanced implementation".

The Paris Agreement, which is included in the Act, has requirements to ensure that vulnerable communities are considered in decisions that the Government makes to address climate change.

Related information

Section 5ZS of the Climate Change Response Act 2002

Section 5ZI of the Climate Change Response Act 2002

C. Equitable policies Climate strategies, policies and plans focus on identified vulnerable groups and incorporate an equitable perspective, i.e., establishing measures/provisions for reducing harms and ensuring equitable benefits from climate solutions. A

The legislative framework considers equity.

As the Appendix to the updated Nationally Determined Contribution states (the update was submitted in 2021), the Climate Change Response Act 2002 recognises the Government's responsibilities to give effect to the principles of the Treaty of Waitangi.

In particular, the Act requires Emissions Reduction Plans to include a strategy to recognise and mitigate the effects that reducing emissions and increasing removals will have on Māori. It also requires that Māori be adequately consulted on these plans.

In its Nationally Determined Contribution, New Zealand considered a range of factors to support fairness and equity.

The National Adaptation Plan states (on page 32) that the adaptation journey must be equitable and that the adaptation strategy and plans will support New Zealanders in ways that recognise communities' unique needs, values, and circumstances. Many of the plan's actions have a specific focus on Māori.

There is also a provision for the Climate Change Commission to recommend a change to the 2050 emissions reduction targets if there are equity implications (including generational equity).

Therefore, we have given this item a rating of "advanced implementation".

Related information

New Zealand's first Nationally Determined Contribution (updated November 2021), at unfccc.int

Section 5T of the Climate Change Response Act 2002

Section 3A of the Climate Change Response Act 2002

Ministry for the Environment (2022), Urutau, ka taurikura: Kia tū pakari a Aotearoa i ngā huringa āhuarangi Aotearoa New Zealand's first national adaptation plan, at environment.govt.nz

Component: G.8 Monitoring mechanisms (component score: 8.33)

Item Criteria Rating Comment
A. Existence of mechanisms There are monitoring mechanisms in place for tracking progress towards the Nationally Determined Contribution and the national climate overarching law. A

Under the Nationally Determined Contribution, there is a commitment to regular reporting on progress.

The Climate Change Response Act 2002 requires the Climate Change Commission to monitor and report annually on government progress towards meeting the 2050 emissions reduction targets and progress on emissions budgets and reduction plans.

The Climate Change Commission published its first monitoring report in July 2024. This report includes an assessment of the adequacy of the Emissions Reduction Plan and progress in its implementation, including any new opportunities to reduce emissions.

The Climate Change Commission must also report on progress at the end of each emissions budget period. The first report is due in 2027.

The Climate Change Commission is required to provide two-yearly monitoring reports on the implementation and effectiveness of the National Adaptation Plan. It published the first monitoring report in August 2024. The report included an assessment of how well the plan is achieving its objectives and how well it responds to climate risks. The report also identified barriers to implementation and effectiveness, and how these might be overcome.

The Climate Change Chief Executives Board produces quarterly reports on the progress of the Emissions Reduction Plan and the National Adaptation Plan.

Therefore, we have given this item a rating of "advanced implementation".

Related information

New Zealand's first Nationally Determined Contribution (updated November 2021), at unfccc.int

Section 5ZK of the Climate Change Response Act 2002

Section 5ZL of the Climate Change Response Act 2002

Section 5ZU of the Climate Change Response Act 2002

Climate Change Commission (2024), Monitoring report: Emissions reduction Assessing progress towards meeting Aotearoa New Zealand's emissions budgets and the 2050 target, at climatecommission.govt.nz

Climate Change Chief Executives Board (2024), Climate Change Chief Executives Board Quarterly Progress Report to Climate Priorities Ministerial Group March 2024, at environment.govt.nz

Climate Change Commission (2024), Progress report: National Adaptation Plan Assessing progress on the implementation and effectiveness of the Government's first national adaptation plan, at climatecommission.govt.nz

B. Feedback for policy-making There are feedback mechanisms to use the information from monitoring to improve climate change policy-making. I

We have given this item a rating of "intermediate implementation" because, although mechanisms are in place, it is too early to see how they have been used in practice.

The information produced by the main monitoring mechanism (Climate Change Commission monitoring reports) is intended to be used as feedback for improving climate change policies. There is a legislative requirement for the Minister of Climate Change to respond publicly to the Commission's monitoring report.

For the monitoring reports on progress towards emissions budgets, the Minister's response has to include amendments that will be made to the current Emissions Reduction Plan.

Because the first monitoring reports were only published in July and August 2024, it is too early to assess how the information will be used and to what extent assessments of progress are used to inform future policy-making.

The Climate Change Chief Executives Board is responsible for advising how agencies can respond to the results of monitoring and reporting, and where any changes in response might be needed.

One of the Board's strategic intentions through to 2027 is to support New Zealand to meet its first three emissions budgets and deliver the National Adaptation Plan, including by providing adaptative management advice to support any course correction that is needed and to seize new opportunities.

Related information

Climate Change Commission (2024), Monitoring report: Emissions reduction Assessing progress towards meeting Aotearoa New Zealand's emissions budgets and the 2050 target, at climatecommission.govt.nz

Climate Change Commission (2024), Progress report: National Adaptation Plan Assessing progress on the implementation and effectiveness of the Government's first national adaptation plan, at climatecommission.govt.nz

Section 5ZK of the Climate Change Response Act 2002

Section 5ZV of the Climate Change Response Act 2002

Climate Change Chief Executives Board (2023), Statement of intent 2023–2027, at environment.govt.nz

Component: G.9 Transparency (component score: 8.88)

Item Criteria Rating Comment
A. Global transparency There are updated transparency mechanisms aligned with the global governance framework under the Convention (UNFCCC) and the Paris Agreement: National Communications, and Biennial Reports / Biennial Update Reports / Biennial Transparency Reports. A

New Zealand's most recent National Communication and Biennial Report are up to date. These documents include the latest Nationally Determined Contribution targets. The National Communication and the Biennial report also reference emissions budgets, Emissions Reduction Plans, and National Adaptation Plans.

Therefore, this item meets the criteria for a rating of "advanced implementation".

The UNFCCC requires the National Communication to be updated every four years. We note that five years elapsed between the submission of the previous National Communication (2017) and the latest National Communication (2022).

Related information

Ministry for the Environment (2022), Te Whakawhitiwhiti Kōrero Tuawaru ā-Motu o Aotearoa: New Zealand's Eighth National Communication under the United Nations Framework Convention on Climate Change and the Kyoto Protocol, at unfccc.int

Ministry for the Environment (2017) New Zealand's Seventh National Communication – Fulfilling reporting requirements under the United Nations Framework Convention on Climate Change and the Kyoto Protocol, at unfccc.int

Ministry for the Environment (2022) Te Rīpoata Taurua Tuarima o Aotearoa: New Zealand's Fifth Biennial Report under the United Nations Framework Convention on Climate Change, at unfccc.int

B Transparency at the national level There are transparency mechanisms that provide updated information on progress towards the achievement of national objectives related to climate change. A

Information about progress to achieve national climate objectives is published. This includes the following:

  • The Climate Change Chief Executives Board provides meeting packs and advice to Ministers and the Prime Minister. This includes six-monthly reports on the Emissions Reduction Plan and National Adaptation Plan. This information is available publicly on the Ministry for the Environment's website.

  • The Climate Change Commission reports on the Government's progress towards meeting the 2050 emissions reduction targets and on progress against emissions budgets and reductions plans. The Commission also monitors progress on the National Adaptation Plan.

  • The Government is providing quarterly updates on its progress towards the first and second emissions budgets, as part of its reporting on nine Government targets to be delivered by 2030. The first quarterly report is for the quarter ended 30 June 2024 and was published in September 2024.

People can request information from government organisations about the implementation of climate policy under the Official Information Act 1982.

Therefore, we have given this item a rating of "advanced implementation".

Related information

"Climate Change Chief Executives Board released material", at environment.govt.nz

Climate Change Commission, "Monitoring and reporting", at climatecommission.govt.nz

Te Kawa Mataaho Public Service Commission, "Official Information Act Requests", at publicservice.govt.nz

C. Publicly accessible reporting The transparency mechanisms that provide information on national actions related to climate change are accessible in formats and language that enable follow-up by society. I

The Ministry for the Environment has a large amount of information on its website about what the Government is doing about climate change. This includes information on emissions reductions and adaptation.

For example, the Ministry's website provides information sheets explaining the National Adaptation Plan, relevant actions, and programmes of work to support adaptation actions affecting different groups, such as rural communities, disabled people, and younger New Zealanders.

Although there is a lot of publicly available information about current progress towards emissions reduction targets, different sources present this information differently and the public may find the different sources hard to reconcile. In our view, this is information that the public would want to know.

The Government's factsheet for its target for reduced greenhouse gas emissions provides this information in a more understandable way, although some technical information is not explained.

The discussion document for the second Emissions Reduction Plan is easily accessible online and presents information on how New Zealand is tracking its progress towards meeting emissions budgets. However, this information has not been calculated on the same basis as the official emissions projections that were published in late 2023.

Therefore, we have given this item a rating of "intermediate implementation".

Related information

Ministry for the Environment, "What the Government is doing about climate change", at environment.govt.nz

Ministry for the Environment, "National adaptation plan", at environment.govt.nz

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

New Zealand Government, "Factsheet - Target 9 - Reduced net greenhouse gas emissions - June 2024", at dpmc.govt.nz

Component: G.10 Oversight and climate litigation (component score: 10)

Item Criteria Rating Comment
A. Parliament Parliament has active bodies (e.g., commissions or committees) that focus on climate change issues. A

The New Zealand Parliament has an Environment Committee that looks at business related to conservation, environment, and climate change. The Committee looks at climate change adaptation and mitigation. It conducts financial scrutiny hearings for the Ministry for the Environment, the Climate Change Commission, and the Climate Change Chief Executives Board, and conducts inquiries into climate adaptation.

Other select committees in Parliament focus on climate change issues in their scrutiny plans.

The Economic Development, Science and Innovation Committee looks at the transition to net zero carbon emissions by 2050 and scrutinises the energy sector.

The Finance and Expenditure Committee works with the Controller and Auditor-General to understand the audit sector's capacity and capability to report on climate change and deal with climate-related disclosures.

The Finance and Expenditure Committee recently completed an inquiry into climate adaptation. The Committee made several recommendations in a report of the inquiry that will inform the development of a policy framework for how New Zealand will adapt to climate change.

The Transport and Infrastructure Committee looks at energy transition.

Parliament's oversight of climate change matters is further strengthened by the Parliamentary Commissioner for the Environment. The Commissioner is an independent Officer of Parliament and has broad powers to investigate environmental concerns, including climate change concerns. The Commissioner reports directly to Parliament.

Therefore, we have given this item a rating of "advanced implementation".

Related information

New Zealand Parliament, "Environment", at parliament.nz

New Zealand Parliament, "Select Committee Reports", at selectcommittees.parliament.nz

Finance and Expenditure Committee (2024), Inquiry into climate adaptation final report, at selectcommittees.parliament.nz

Parliamentary Commissioner for the Environment, "About us", at pce.parliament.nz

B. Audit institutions SAI conducted (or is currently conducting) at least one audit in the last five years that has climate change issues as its main focus. A

The Office of the Auditor-General is currently carrying out an audit of how local councils are responding to climate change. The Office is looking at how councils have translated climate change strategies, commitments, and plans into action.

The Office also has other publications focusing on climate change. Therefore, we have given this item a rating of "advanced implementation".

Related information

Controller and Auditor-General (2023), "Our intentions: How well councils are implementing climate change actions", at oag.parliament.nz

Controller and Auditor-General, "Climate change", at oag.parliament.nz

C. Climate litigation The judiciary or other quasi-judicial bodies are prepared to adjudicate claims related to issues regarding climate change. A

Courts in New Zealand have considered several climate-related claims, including against Government ministers and agencies, and corporate entities. The Global climate litigation report cites 26 litigation cases in New Zealand as of December 2022 and discusses several of them.

Therefore, we have given this item a rating of "advanced implementation".

Related information

Climate Change Litigation, "New Zealand Archives", at climatecasechart.com

United Nations Environment Programme (2023), Global Climate Litigation Report: 2023 Status Review, at unep.org

Lawyers for Climate Action NZ Inc websitee, at lawyersforclimateaction.nz

Public policies

Category: International commitments

Component: P.1 Nationally Determined Contribution (component score: 8.88)

Item Criteria Rating Comment
A. Actualisation The Nationally Determined Contribution is up to date, according to art. 4, §9 of the Paris Agreement. A

New Zealand's submitted its first Nationally Determined Contribution to the United Nations Forum Climate Change in 2016.

New Zealand refers to the second Nationally Determined Contribution as an update of the first Nationally Determined Contribution. This was updated in November 2021. New Zealand is due to submit the updated Nationally Determined Contribution to the United Nations Framework Convention on Climate Change in 2025.

Therefore, we have given this item a rating of "advanced implementation".

Related information

United Nations Climate Change, "NDC Registry", at unfccc.int/NDCREG

New Zealand's First Nationally Determined Contribution, at unfccc.int

B. Ambition The current Nationally Determined Contribution is clearly more ambitious than the previous Nationally Determined Contribution, according to art. 4, §3 of the Paris Agreement. A

The first Nationally Determined Contribution set a target to reduce greenhouse gas emissions to 30% below 2005 levels by 2030. The updated Nationally Determined Contribution target is for a 50% reduction of net greenhouse gas emissions below the gross 2005 level by 2030. This is clearly a more ambitious target.

New Zealand's Nationally Determined Contribution is limited to a reduction in greenhouse gas emissions. This is not broken down into sectors or other categories.

New Zealand's Nationally Determined Contribution does not include any adaptation or international finance contributions. However, it noted that New Zealand intends to separately communicate its action on climate finance in its Biennial reports and its adaptation efforts in its 8th National Communication, then in successive biennial transparency reports under the Paris Agreement.

Therefore, this item meets the requirements for a rating of "advanced implementation".

Related information

United Nations Climate Change, "NDC Registry", at unfccc.int/NDCREG

New Zealand's First Nationally Determined Contribution, at unfccc.int

C. Targets per sector Nationally Determined Contribution commitments are broken down into sectoral targets (in the Nationally Determined Contribution itself or in any other national plans, programmes, or regulations). I

New Zealand's domestic emissions reduction targets are broken down into sectoral targets. The sectors include the main sectors we expected to see, and three of those are the sectors we selected for assessment in P4 – Mitigation Sectors.

The Nationally Determined Contribution target has not been broken down beyond a national level.

As noted in assessment item G3B (Alignment to Nationally Determined Contribution), there is some alignment between the domestic emissions reduction targets and the Nationally Determined Contribution. However, domestic targets are different to, and not enough by themselves to meet, the Nationally Determined Contribution.

We have given this item a rating of "intermediate implementation" because, although targets for domestic emissions have been broken down into sectoral targets, these are not fully aligned with, or enough to meet, the Nationally Determined Contribution.

New Zealand's strategy is to use international market mechanisms, co-operative approaches, and carbon markets to meet its Nationally Determined Contribution target.

Related information

Ministry for the Environment (2022), Te hau mārohi ki anamata Towards a productive, sustainable and inclusive economy Aotearoa New Zealand's first emissions reduction plan, at environment.govt.nz

United Nations Climate Change, "NDC Registry", at unfccc.int/NDCREG

Ministry for the Environment (2023), Nationally Determined Contribution strategy (proactive release), at environment.govt.nz

Category: General strategies

Component: P.2 Mitigation strategy (component score: 10)

Item Criteria Rating Comment
A. Mapping National government has mapped the policies that impact national greenhouse gas emissions. A

The Emissions Reduction Plan contains the main policies for reducing greenhouse gas emissions. It is comprehensive, includes sectoral plans, and is supported by a wide range of advice and inputs.

The first Emissions Reduction Plan was published in 2022. The Government is now preparing the second Emissions Reduction Plan.

Although some of the actions in the first Emissions Reduction Plan have been discontinued and the second Emissions Reduction Plan is not yet finalised, this process is taking place in accordance with the expected and legislatively required timeline.

Therefore, it is reasonable to say that the Emissions Reduction Plan is sufficiently updated. Accordingly, we have given this item a rating of "advanced implementation".

Related information

Ministry for the Environment (2022), Te hau mārohi ki anamata Towards a productive, sustainable and inclusive economy Aotearoa New Zealand's first emissions reduction plan, at environment.govt.nz

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

B. National strategy The country has clearly defined goals and strategies for reducing greenhouse gas emissions and identified key policies and activities to achieve the goals and implement the strategies. A

The Government's high-level climate change mitigation policy is to:

  • reduce net greenhouse gas emissions to no more than 290 Mt CO2-e from 2022 to 2025 and 305 Mt CO2-e from 2026 to 2030;

  • reduce net greenhouse gas emissions to 50% below gross 2005 levels by 2030 (New Zealand's Nationally Determined Contribution under the Paris Agreement);

  • reduce biogenic methane to 10% below 2017 levels by 2030;

  • reach net zero for long-lived gases by 2050; and

  • reduce biogenic methane to 24%-47% below 2017 levels by 2050 (this is currently being reviewed by an independent expert).

The Government recently confirmed these targets in its Climate Strategy, which it published in July 2024. The strategy includes five pillars for focusing efforts towards meeting the targets. The first of these targets is also one of the Government's nine key targets for the public sector. The Government announced its nine key targets in April 2024.

Emissions budgets act as interim targets over a five-year period (the first emissions budget was for a four-year period from 2022 to 2025) for meeting the longer-term goals.

The main mechanism for implementing the strategy and meeting the targets are the emissions reduction plans, with a plan issued for each emissions budget period.

The first Emissions Reduction Plan was published in May 2022. It described its purpose as being to contribute to global efforts to limit temperature rise to 1.5oC above pre-industrial levels. It also referred to the targets in the Climate Change Response Act 2002 for:

  • all greenhouse gases, other than biogenic methane, to reach net zero by 2050; and

  • a minimum 10% reduction in biogenic methane emissions by 2030 and a 24%-47% reduction by 2050 (compared with 2017 levels).

New Zealand has clearly defined goals, and it has identified key policies and activities to achieve the goals and implement the strategies.

Therefore, this item meets the requirements for a rating of "advanced implementation".

Related information

New Zealand Government "Factsheet - Target 9 - Reduced net greenhouse gas emissions - June 2024", at dpmc.govt.nz

Ministry for the Environment (2024), Responding to a changing climate – The Government's climate strategy, at environment.govt.nz

Ministry for the Environment, "Emissions budgets and the emissions reduction plan", at environment.govt.nz

Ministry for the Environment (2022), Te hau mārohi ki anamata Towards a productive, sustainable and inclusive economy Aotearoa New Zealand's first emissions reduction plan, at environment.govt.nz

C. Sectoral plans There are specific plans for achieving sectoral emissions targets which are consistent with the national strategies. A

The first Emissions Response Plan included targets for key sectors. These were transport, energy and industry, agriculture, waste, fluorinated gases, and forestry.

The Emissions Reduction Plan had dedicated chapters for each of these sectors, which set out how the targets for each sector would be achieved. The Emissions Reduction Plan also had sections about emissions pricing (and the Emissions Trading Scheme), funding, planning, and research.

In July 2024, the discussion document for the second Emissions Reduction Plan was released. Some actions from the first Emissions Reduction Plan are not being continued.

However, the discussion document still includes sector plans for energy, transport, agriculture, forestry, non-forestry removals, and waste. The discussion document also includes sections on the Emissions Trading Scheme and funding.

Therefore, this item meets the requirements for a rating of "advanced implementation".

Related information

Ministry for the Environment (2022), Te hau mārohi ki anamata Towards a productive, sustainable and inclusive economy Aotearoa New Zealand's first emissions reduction plan, at environment.govt.nz

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

Component: P.3 National adaptation plans and strategies (component score: 10)

Item Criteria Rating Comment
A. Existence of national adaptation plan The country submitted their National Adaptation Plans to the UNFCCC, according to art. 7, §9 of the Paris Agreement, or there is an official National Adaptation Plan or strategy. A

New Zealand has an official current National Adaptation Plan. Therefore, this item meets the requirements for a rating of "advanced implementation".

Related information:

Ministry for the Environment (2022), Urutau, ka taurikura: Kia tū pakari a Aotearoa i ngā huringa āhuarangi Aotearoa New Zealand's first national adaptation plan, at environment.govt.nz

B. Coverage The government has determined the most relevant adaptation sectors in the country and the National Adaptation Plans/strategies cover the most relevant adaptation sectors of the country. A

New Zealand legislation requires the government to provide a National Adaptation Plan that responds to climate risks identified in a National Risk Assessment.

The Government published its first National Climate Change Risk Assessment in August 2020. This identified the main risk areas. It was an extensive piece of work using a complex, multi-stage methodology with input from a range of experts and stakeholders, including Māori.

The National Climate Change Risk Assessment identifies 43 priority risks in five value domains. The five domains are the human domain, natural environment domain, economy domain, built environment domain, and governance domain.

The National Climate Change Risk Assessment categorises the 10 most significant risks as being the two risks from each domain with the highest adaptation urgency rating.

Although the National Climate Change Risk Assessment identifies the 10 most significant risks, all 43 priority risks need action. The report sets out ratings for urgency and the consequence of inaction, and details research priorities, for all 43 priority risks. This means that the developers of the National Adaptation Plan can properly consider all priority risks.

The first National Adaptation Plan was published in August 2022. Appendix 2 sets out which of the identified risks the National Adaptation Plan addresses.

The National Adaptation Plan includes the following areas for adaptation:

  1. development in the right locations;

  2. adaptation options, including managed retreat;

  3. natural environment (focusing on risks to coastal ecosystems, and indigenous ecosystems and species);

  4. homes, buildings, and places;

  5. infrastructure;

  6. communities; and

  7. the economy and financial system.

The National Adaptation Plan describes all of the top 10 risks.

The National Adaptation Plan's Table of Actions lists all the actions and the risks that each one is intended to address.

Therefore, this item meets the requirements for a rating of "advanced implementation".

Related information

Section 5ZP of the Climate Change Response Act 2002

Section 5ZS of the Climate Change Response Act 2002

Ministry for the Environment (2022), Urutau, ka taurikura: Kia tū pakari a Aotearoa i ngā huringa āhuarangi Aotearoa New Zealand's first national adaptation plan, at environment.govt.nz

Ministry for the Environment (2020), National Climate Change Risk Assessment for Aotearoa New Zealand: Main report – Arotakenga Tūraru mō te Huringa Āhuarangi o Āotearoa: Pūrongo whakatōpū, at environment.govt.nz

Ministry for the Environment (2022), Aotearoa New Zealand's first national adaptation plan: Table of actions, at environment.govt.nz

C. Up to date plans and strategies The National Adaptation Plans or strategies were developed or updated in the last five years. A

The National Adaptation Plan was published in August 2022, which is within the last five years. Therefore, this item meets the requirements for a rating of "advanced implementation".

Related information

Ministry for the Environment (2022), Aotearoa New Zealand's first national adaptation plan, at environment.govt.nz

Category: Sectoral components

Component: P.4 Mitigation sectors

Sector 1 Agriculture (component score: 7.5)

Item Criteria Rating Comment
A. Climate policy design The design of national policies related to the selected mitigation sector consider the reduction of emissions in that sector. I

Previously, there had been a mechanism to bring agriculture into the Emissions Trading Scheme, which is New Zealand's main tool for reducing greenhouse gas emissions.

The Government has announced that it will pass legislation to remove agriculture from the scheme. The Government now plans to reduce agriculture emissions by investing in research and development of tools that will reduce emissions without reducing agricultural production or exports.

To support this approach, the Government is investing $400 million over four years in research, development, and commercialisation of tools for other ways of reducing agricultural emissions. There is also a related action to develop measurement of on-farm emissions by 2025.

Although these pieces of work have emissions reduction targets and other objectives at this stage, there are not clear links between the policies and actual emissions reduction. Until any research and development results in effective and commercially available tools or products, there is uncertainty about whether it will lead to tools and technologies that will actually reduce emissions by the amount required.

Being able to measure emissions is important, but measurement by itself does not reduce emissions.

Legally binding objectives for agriculture are a key part of New Zealand's climate commitments under the Climate Change Response Act 2002. This includes quantified medium- and long-term targets for reducing emissions of biogenic methane. However, the Government has announced that these are being reviewed. This work is still at an early stage.

We have given this item a rating of "intermediate implementation" because:

  • national policies consider the reduction of emissions;

  • there are clear objectives for these policies; but

  • at their current stage, it is not clear how these policies will directly achieve these objectives.

Related information

Media release (6 April 2024) "Methane targets to be independently reviewed", at beehive.govt.nz

Media release (11 June 2024), "Agriculture to come out of the ETS", at beehive.govt.nz

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

Section 5Q of the Climate Change Response Act 2002

B. Specific actions National policies, programmes, and plans are detailed into specific actions to achieve the general mitigation objectives for the selected sector. I

The Ministry for Primary Industries has detailed and up-to-date planning documents for the programme of research, development, and commercialisation of tools for reducing agricultural emissions. These documents include detailed targets and measures, as well as more detailed tasks and assigned roles and responsibilities.

Although there are detailed specific actions with evidence of robust planning, we have given this item a rating of "intermediate implementation". This is because it is not clear how these specific actions will achieve the mitigation objectives for agriculture.

We note that the programme to invest in research, development, and commercialisation of tools includes some potential tools and products that are in the later stages of development, including four that the Ministry for Primary Industries expects to be available for farmers in the next three years.

C. Implementation challenges The national government has mapped challenges to the implementation of policies and achievement of goals for the selected sector. I

The technical annex to the second Emissions Reduction Plan's discussion document includes a section on the intervention logic for each proposed policy. For each policy, there is a section called "Assumptions and dependencies", which includes information about implementation challenges.

This information is not detailed and does not cover the impacts of those challenges nor how they will be overcome. However, the Ministry for Primary Industries has identified the key risks and issues for the programme to develop measurement of on-farm emissions by 2025.

We have given this item a rating of "intermediate implementation" because key risks and issues have been identified for the action to develop measurement of on-farm emissions by 2025 but we saw less detailed information about implementation challenges for the investment in research, development, and commercialisation of tools and technologies.

Related information

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Technical annex to the discussion document, at environment.govt.nz

D. Monitoring and evaluation mechanisms The national government has established monitoring and evaluation mechanisms for assessing the outcomes of the plans or programmes to achieve the mitigation objectives for the selected sector and supporting the review and decision-making process. A

As noted in earlier sections of the assessment, the Climate Change Commission and the Climate Change Chief Executives Board each have a responsibility to monitor and report on the progress of the Emissions Reduction Plan.

The Climate Change Commission recently published its first monitoring report on emissions reduction. This shows the emissions reduction that each sector achieved, including the agriculture sector, and what contributed to this reduction. However, the report does not assess individual policies or actions, nor does it evaluate any policy or action.

The Climate Change Chief Executives Board's six-monthly progress reports on the Emissions Reduction Plan have a summary of progress for each sector. These reports are based on more detailed reporting from the relevant lead agency for each action.

At the individual action level, the Ministry for Primary Industries has developed detailed plans for how it will carry out monitoring and evaluation. This shows that there are mechanisms for both monitoring and evaluation.

Therefore, we have given this item a rating of "advanced implementation".

Related information

Climate Change Commission (2024), Monitoring report: Emissions reduction Assessing progress towards meeting Aotearoa New Zealand's emissions budgets and the 2050 target, at climatecommission.govt.nz

Climate Change Chief Executives Board (2023), First six-monthly progress report on the emissions reduction plan: Covering the period July 2022-December 2022, at environment.govt.nz

Climate Change Chief Executives Board (2023), First six-monthly progress report on the emissions reduction plan: Covering the period July 2022-December 2022 Appendix A, at environment.govt.nz

Component: P.4 Mitigation sector

Sector 2 Land transport (component score: 7.5)

Item Criteria Rating Comment
A. Climate policy design The design of national policies related to the selected mitigation sector consider the reduction of emissions in that sector. A

The national policy for land transport is set out in the Government Policy Statement on land transport (issued in June 2024). Although the Government Policy Statement on land transport mentions emissions reduction, it is not one of the priorities.

However, the Government Policy Statement on land transport notes that steps need to be taken to reduce transport emissions. This is in line with achieving the overall emissions reduction budgets and the target of net zero emissions by 2050. The Government Policy Statement on land transport notes that the second Emissions Reduction Plan will contain several key transport policies aimed at meeting targets.

The second Emissions Reduction Plan's discussion document lists four key proposed policies for land transport, and some of the actions from the first plan are expected to continue.

In its 2024 Budget, the Government committed $257 million (or 3% of Vote Transport) to four initiatives aimed at reducing transport emissions.

The Ministry of Transport's Decarbonising Transport Action Plan has more detailed information about individual actions. This plan includes all the transport actions from the first Emissions Reduction Plan, with specific targets for each of the five focus areas.

We have given this item a rating of "advanced implementation" because there are clear policies that consider the reduction of emissions and clear targets for the key policies.

Related information

New Zealand Government (2024), Government Policy Statement on land transport 2024-34, at transport.govt.nz

Ministry for the Environment (2022), Te hau mārohi ki anamata Towards a productive, sustainable and inclusive economy Aotearoa New Zealand's first emissions reduction plan, at environment.govt.nz

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

"Vote Transport - Vol 1 Economic Development and Infrastructure Sector - The Estimates of Appropriations 2024/25 - Budget 2024", at budget.govt.nz

Ministry of Transport (2023), Decarbonising Transport Action Plan 2022–25 (proactive release), at transport.govt.nz

B. Specific actions National policies, programmes, and plans are detailed into specific actions to achieve the general mitigation objectives for the selected sector. I

In December 2022, the Ministry of Transport published the Decarbonising Transport Action Plan, which provided an implementation plan for the actions in the transport chapter of the first Emissions Reduction Plan. Some of these actions also have their own strategies – for example, the Electric Vehicle Charging Strategy. These documents contain more information about what is involved for each action but less information about how these actions will be implemented.

We understand that the current implementation status of transport actions from the first Emissions Reduction Plan varies. Some actions have been completed, some are continuing under existing contractual funding arrangements and others have been discontinued, as noted in the discussion document for the second Emissions Reduction Plan. New actions to support the transport sector to decarbonise are in the process of being implemented by the Government.

Therefore, we have given this item a rating of "intermediate implementation".

Related information

Ministry for the Environment (2022), Te hau mārohi ki anamata Towards a productive, sustainable and inclusive economy Aotearoa New Zealand's first emissions reduction plan, at environment.govt.nz

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

Ministry of Transport (2023), Decarbonising Transport Action Plan 2022–25 (proactive release), at transport.govt.nz

Ministry of Transport and Ministry of Business, Innovation and Employment (2023), Charging Our Future: National electric vehicle charging strategy for Aotearoa New Zealand 2023-2035 The long-term vision and strategic plan for Aotearoa New Zealand's electric vehicle (EV) charging infrastructure, at transport.govt.nz

C. Implementation challenges The national government has mapped challenges to the implementation of policies and achievement of goals for the selected sector. E

The technical annex to the second Emissions Reduction Plan's discussion document includes a section on the intervention logic for each proposed policy. For each policy, there is a section called "Assumptions and dependencies", which includes information about implementation challenges.

This information is not detailed and does not cover the impacts of those challenges nor how they will be overcome.

More detailed information about individual actions, such as the information in the Ministry of Transport's Decarbonising Transport Action Plan, contains only very limited reference to implementation challenges.

Therefore, we have given this item a rating of "early implementation".

Related information

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Technical annex to the discussion document, at environment.govt.nz

Ministry of Transport (2023), Decarbonising Transport Action Plan 2022–25 (proactive release), at transport.govt.nz

D. Monitoring and evaluation mechanisms The national government has established monitoring and evaluation mechanisms for assessing the outcomes of the plans or programmes to achieve the mitigation objectives for the selected sector and supporting the review and decision-making process. A

As noted in earlier sections of the assessment, the Climate Change Commission and the Climate Change Chief Executives Board each have a responsibility to monitor and report on the progress of the Emissions Reduction Plan.

The Climate Change Commission recently published its first monitoring report on emissions reduction. This monitoring report shows the emissions reductions that each sector achieved, including the transport sector, and what contributed to this reduction. However, the monitoring report does not assess individual policies or action, nor does it evaluate any policy or action.

The Climate Change Chief Executives Board's six-monthly progress reports on the Emissions Reduction Plan have a summary of progress for each sector. These reports are based on more detailed reporting from the relevant lead agency for each action.

The Ministry of Transport's Transport Evidence Base Strategy includes an evaluation plan for the Ministry's key initiatives, including those related to reducing emissions. We have also seen examples of completed evaluations and monitoring reports. This shows that there are mechanisms for both monitoring and evaluation.

Therefore, we have given this item a rating of "advanced implementation".

Related information

Climate Change Commission (2024), Monitoring report: Emissions reduction Assessing progress towards meeting Aotearoa New Zealand's emissions budgets and the 2050 target, at climatecommission.govt.nz

Climate Change Chief Executives Board (2023), First six-monthly progress report on the emissions reduction plan: Covering the period July 2022-December 2022, at environment.govt.nz

Climate Change Chief Executives Board (2023), First six-monthly progress report on the emissions reduction plan: Covering the period July 2022-December 2022 Appendix A, at environment.govt.nz

Ministry of Transport, "Transport Evidence Base Strategy", at transport.govt.nz

Component: P.4 Mitigation sector

Sector 3 Energy (component score 4.16)

Item Criteria Rating Comment
A. Climate policy design The design of national policies related to the selected mitigation sector consider the reduction of emissions in that sector. I

The Government recognises that reducing emissions from energy is a priority and considers that the Emissions Trading Scheme is an important mechanism for encouraging net emissions reduction in the energy sector.

The Government has committed to doubling renewable energy by 2050. One of the Government's key pillars to achieve this is its Electrify New Zealand plan, announced in August 2024. Electrify New Zealand intends to make it easier to invest in the infrastructure needed for electrification by removing barriers. For example, the Government intends to introduce a fast-track consenting process for major renewable energy and transmission projects. Electrify New Zealand is still at an early stage of development. The discussion document for the second Emissions Reduction Plan shows the projected emissions reductions impact from Electrify New Zealand on the second and third emissions budgets, however, it is not entirely clear how those reductions will be achieved.

Another key policy which is projected to have a significant impact on emissions reduction is enabling a regime for carbon capture utilisation and storage. This policy is also at an early stage. The Government recently undertook public consultation on this proposed policy.

In addition to these two key policies, there is a range of both ongoing and proposed new policies for reducing energy emissions. However, we note that some policies from the first Emissions Reduction Plan have been discontinued.

We have given this item a rating of "intermediate implementation" because:

  • national policies consider the reduction of emissions;

  • there is a large programme of ongoing and proposed work for reducing energy emissions although some of this it at an early stage;

  • there is an overall objective to double renewable energy by 2050; but

  • we have not seen clear objectives for reducing emissions from this programme of work, or from the individual policies and actions it includes.

Related information

Media release (26 August 2024), "Next steps on Electrifying New Zealand", at beehive.govt.nz

Ministry of Business, Innovation and Employment, "Proposed regulatory regime for Carbon Capture, Utilisation, and Storage (CCUS)", at mbie.govt.nz

Ministry of Business, Innovation and Employment, "New Zealand Energy Strategy", at mbie.govt.nz

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

B. Specific actions National policies, programmes, and plans are detailed into specific actions to achieve the general mitigation objectives for the selected sector. E

The first Emissions Reduction Plan Table of Actions breaks down the policies for the energy sector into more specific actions or initiatives. For each of these there is a brief description, expected timeline and lead agency. Some of these actions have been discontinued but many are ongoing. More information about each of these can be found on the relevant lead agency website. However, we have not seen detailed planning documents for these actions.

The discussion document for the second Emissions Reduction Plan includes additional proposed policies for reducing energy emissions. These are still at an early stage.

We have given this item a rating of "early implementation". Some of the national policies have been detailed into specific actions, while other actions are still at an early stage and not yet fully developed. We have also not seen detailed information about how each policy is being planned or implemented.

Related information

Ministry for the Environment (2022), Te hau mārohi ki anamata Towards a productive, sustainable and inclusive economy Aotearoa New Zealand's first emissions reduction plan, at environment.govt.nz

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

C. Implementation challenges The national government has mapped challenges to the implementation of policies and achievement of goals for the selected sector. E

The technical annex to the second Emissions Reduction Plan's discussion document includes a section on the intervention logic for each proposed policy. For each policy, there is a section called "Assumptions and dependencies", which includes information about implementation challenges.

This information is not detailed and does not cover the impacts of those challenges nor how they will be overcome. We have also not seen information about implementation challenges for the ongoing policies and actions for reducing energy emissions.

We have therefore given this item a rating of "early implementation".

Related information

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Technical annex to the discussion document, at environment.govt.nz

D. Monitoring and evaluation mechanisms

The national government has established monitoring and evaluation mechanisms for assessing the outcomes of the plans or programmes to achieve the mitigation objectives for the selected sector and supporting the review and decision-making process.

E

As noted in earlier sections of the assessment, the Climate Change Commission and the Climate Change Chief Executives Board each have a responsibility to monitor and report on the progress of the Emissions Reduction Plan.

The Climate Change Commission recently published its first monitoring report on emissions reduction. This shows the emissions reduction that each sector achieved, including the energy sector, and what contributed to this reduction, but it does not assess or evaluate individual policies or actions.

The Climate Change Chief Executives Board's six-monthly progress reports on the Emissions Reduction Plan have a summary of progress for each sector. These reports are based on more detailed reporting from the relevant lead agency for each action.

We understand that evaluations are being done for some of the actions from the first emissions reduction plan but have not seen any plans or other mechanisms for evaluating the actions in the energy sector.

Therefore, we have given this item a rating of "early implementation".

Related information

Climate Change Commission (2024), Monitoring report: Emissions reduction Assessing progress towards meeting Aotearoa New Zealand's emissions budgets and the 2050 target, at climatecommission.govt.nz

Climate Change Chief Executives Board (2023), First six-monthly progress report on the emissions reduction plan: Covering the period July 2022-December 2022, at environment.govt.nz

Climate Change Chief Executives Board (2023), First six-monthly progress report on the emissions reduction plan: Covering the period July 2022-December 2022 Appendix A, at environment.govt.nz

Component: P.5 Adaptation sectors

Sector 1 Land and ocean ecosystems (component score: 5)

Item Criteria Rating Comment
A. Climate policy design The national government has put in place public policies to address the main issues related to adaptation in the selected sector, and these policies consider the country's climate goals in their design. A

The "Natural Environment" chapter of the National Adaptation Plan sets out adaptation policies that address key vulnerabilities for land and ocean ecosystems.

We have given this item a rating of "advanced implementation" because:

  • the National Adaptation Plan contains a specific section ("Natural Environment") that relates to land and ocean ecosystems;

  • the actions in the "Natural Environment" chapter are designed to address the 12 risks for land and ocean ecosystems identified in the National Climate Change Risk Assessment; and

  • climate goals are considered by including general adaptation goals and specific objectives for the natural environment outcome area in the National Adaptation Plan.

Related information

Ministry for the Environment (2022), Urutau, ka taurikura: Kia tū pakari a Aotearoa i ngā huringa āhuarangi Aotearoa New Zealand's first national adaptation plan, at environment.govt.nz

B. Specific actions National policies, programmes, and plans are detailed into specific actions to achieve the general adaptation objectives for the selected adaptation sector. I

The National Adaptation Plan sets out high-level actions to meet the risks identified in the National Climate Change Risk Assessment. These high-level actions include some information about the lead agency, status (whether they are a current action that has funding, or are a proposed action), and time frames.

We considered whether specific actions have been identified for a small sample of these high-level actions. The high-level actions we looked at were:

  • implementation of the Department of Conservation's Climate Change Adaptation Action Plan (Department of Conservation);

  • implementation of the Water Availability and Security programme (Ministry for Primary Industries); and

  • implementation of the National Policy Statement for Freshwater Management 2020 (Ministry for the Environment).

We found that the detail available for these different initiatives varied. For example, the Department of Conservation's Climate Change Adaptation Action Plan had detailed tables of specific actions, with assigned responsibilities and time frames. However, the other two initiatives had not progressed as far.

The Ministry for Primary Industries is currently considering the next phase of its Water Availability and Security programme.

Regional councils were due to notify their plans for the National Policy Statement on Freshwater Management 2020 by the end of 2024. However, this has been delayed until the end of 2027.

We are aware that we have only looked at a sample of high-level actions. We have given this item a rating of "intermediate implementation", based on the sample of actions that we selected.

Related information

Ministry for the Environment (2022), Urutau, ka taurikura: Kia tū pakari a Aotearoa i ngā huringa āhuarangi Aotearoa New Zealand's first national adaptation plan, at environment.govt.nz

Department of Conservation (2023), Department of Conservation Climate Change Adaptation Action Plan – action tables 2022–2025, at doc.govt.nz

Department of Conservation (2020), Department of Conservation climate change adaptation action plan 2020/21–2024/25, at doc.govt.nz

Ministry for Primary Industries, "Water availability and security", at mpi.govt.nz

C. Implementation Challenges The national government has mapped challenges to the implementation of policies and achievement of goals for the selected sector. N

The Climate Change Chief Executives Board's March 2024 progress report refers to challenges with funding and resourcing. It also mentions some uncertainties that have been created because the progress of some actions in the National Adaptation Plan halted after the change of government.

However, we found no evidence that the Government has formally mapped the challenges to the implementation of its climate change adaptation policies and actions for land and ocean ecosystems.

Therefore, we have given this item a rating of "no implementation".

Related information

Climate Change Chief Executives Board (2024), Climate Change Chief Executives Board Quarterly Progress Report to Climate Priorities Ministerial Group March 2024, at environment.govt.nz

D. Monitoring and evaluation mechanisms The national government has established monitoring and evaluation mechanisms for assessing the outcomes of the policies to achieve the adaptation objectives for the selected sector and supporting the review and decision-making process. E

The Climate Change Chief Executives Board and the Climate Change Commission monitor and report on progress of the National Adaptation Plan.

The Climate Change Commission published its first report on the National Adaptation Plan in August 2024. The report provided some information about actions in the National Adaptation Plan, including actions related to land and ocean ecosystems. However, it did not provide a detailed evaluation of any specific action.

The Climate Change Chief Executives Board's progress reports to Climate Ministers include information about the progress of the implementation of National Adaptation Plan actions. The Climate Change Chief Executives Board's March 2024 progress report notes that there is not currently a completed set of formal indicators to measure the overall sufficiency of the adaptation response.

The Climate Change Chief Executives Board's progress reports are based on reports from relevant agencies that show the current status of, and progress made for, each action.

We have given this item a rating of "early implementation" because, although there is some monitoring of the progress of the implementation of National Adaptation Plan actions, this is limited and we have not seen any evidence of, or plans for, evaluation of these actions.

Related information

Climate Change Commission (2024), Progress report: National Adaptation Plan Assessing progress on the implementation and effectiveness of the Government's first national adaptation plan, at climatecommission.govt.nz

Climate Change Chief Executives Board (2024), Climate Change Chief Executives Board Quarterly Progress Report to Climate Priorities Ministerial Group March 2024, at environment.govt.nz

Climate Change Chief Executives Board (2023), Appendix 2 of the Six-monthly progress report on the emissions reduction plan and the national adaptation plan, for the Climate Response Ministerial Group: Covering the period January-June 2023, at environment.govt.nz

Component: P.5 Adaptation sectors

Sector 2 Disaster risk management (component score: 4.16)

Item Criteria Rating Comment
A. Climate policy design The national government has put in place public policies to address the main issues related to adaptation in the selected sector, and these policies consider the country's climate goals in their design. A

For the purposes of this assessment, we have defined "disaster" as an emergency situation where there is an immediate threat to people, animals, or the built or natural environment that is caused by risks that have been exacerbated by climate change.

Both the National Climate Change Risk Assessment and New Zealand's National Risk Register identify risks from natural disasters that are climate related. The National Adaptation Plan does not have a specific chapter on emergency or disaster risk management. However, other chapters include several actions related to the impacts of severe weather events.

We have given this item a rating of "advanced implementation" because:

  • the National Adaptation Plan contains several actions related to disaster risk management;

  • these actions are designed to address relevant risks identified in the National Climate Change Risk Assessment, such as risks associated with severe weather events; and

  • climate goals are considered by including general adaptation goals and specific objectives for the natural environment outcome area in the National Adaptation Plan.

Related information

Ministry for the Environment (2022), Aotearoa New Zealand's first national adaptation plan: Table of actions, at environment.govt.nz

Department of the Prime Minister and Cabinet, "New Zealand's national risks", at dpmc.govt.nz

B. Specific actions National policies, programmes, and plans are detailed into specific actions to achieve the general adaptation objectives for the selected adaptation sector. E

Three key actions in the National Adaptation Plan related to disaster risk management are to implement the National Disaster Resilience Strategy, to modernise the Emergency Management system, and to develop the Emergency Management workforce.

We found little information about how the National Disaster Resilience Strategy is to be implemented, apart from a reference to developing a roadmap.

We understand that some progress has been made on the other actions. For example, an Emergency Management Bill was prepared, but the Government has since decided to discharge this with the intent of introducing an amended Bill in 2025.

The National Emergency Management Agency has reported that, for 2023/24, 543 people from 46 public and private sector organisations, volunteer groups, and universities participated in Coordinated Incident Management System courses delivered by the agency's System Capability unit. The train the trainer programme has trained 20 individuals from 11 different organisations to deliver the training.

Given the limited progress on these actions as a whole and a lack of detailed planning documents, we have given this item a rating of "early implementation".

Related information

Ministry for the Environment (2022), Urutau, ka taurikura: Kia tū pakari a Aotearoa i ngā huringa āhuarangi Aotearoa New Zealand's first national adaptation plan, at environment.govt.nz

Ministry of Civil Defence and Emergency Management (2019), National Disaster Resilience Strategy, at civildefence.govt.nz

National Emergency Management Agency, "National Disaster Resilience Strategy", at civildefence.govt.nz

National Emergency Management Agency, "Proactive Release: Emergency Management Bill: Approval for Introduction - June 2023", at civildefence.govt.nz

C. Implementation Challenges The national government has mapped challenges to the implementation of policies and achievement of goals for the selected sector. N

The Climate Change Chief Executives Board's March 2024 progress report refers to challenges of funding and resourcing. It also mentions some uncertainties that have been created because the progress of some actions in the National Adaptation Plan has stopped after the change of government.

However, we found no evidence that the Government has formally mapped the challenges to the implementation of its climate change adaptation policies and actions for disaster risk management.

Therefore, we have given this item a rating of "no implementation".

Related information

Climate Change Chief Executives Board (2024), Climate Change Chief Executives Board Quarterly Progress Report to Climate Priorities Ministerial Group March 2024, at environment.govt.nz

D. Monitoring and evaluation mechanisms The national government has established monitoring and evaluation mechanisms for assessing the outcomes of the policies to achieve the adaptation objectives for the selected sector and supporting the review and decision-making process. E

The Climate Change Chief Executives Board and the Climate Change Commission monitor and report on progress of the National Adaptation Plan.

The Climate Change Commission published its first report on the National Adaptation Plan in August 2024. The report provided some information about actions in the National Adaptation Plan, including actions related to disaster risk management. However, it did not provide a detailed evaluation of any specific action.

The Climate Change Chief Executives Board's progress reports to climate Ministers include information about the progress of the implementation of National Adaptation Plan actions. The Climate Change Chief Executives Board's March 2024 progress report notes that there is not currently a completed set of formal indicators to measure the overall sufficiency of the adaptation response.

The Climate Change Chief Executives Board's progress reports are based on reports from relevant agencies that show the current status of, and progress made for, each action.

We have given this item a rating of "early implementation" because, although there is some monitoring of the progress of the implementation of National Adaptation Plan actions, this is limited and we have not seen any evidence of, or plans for, evaluation of these actions.

Related information

Climate Change Commission (2024), Progress report: National Adaptation Plan Assessing progress on the implementation and effectiveness of the Government's first national adaptation plan, at climatecommission.govt.nz

Climate Change Chief Executives Board (2024), Climate Change Chief Executives Board Quarterly Progress Report to Climate Priorities Ministerial Group March 2024, at environment.govt.nz

Climate Change Chief Executives Board (2023), Appendix 2 of the Six-monthly progress report on the emissions reduction plan and the national adaptation plan, for the Climate Response Ministerial Group: Covering the period January-June 2023, at environment.govt.nz

Finance

Category: Public climate finance

Component: F.1. Domestic climate finance (component score: 0.83)

Item Criteria Rating Comment
A. Planning and budgeting The national government has budgets that are aligned with their domestic climate goals and plans or strategies. E

The New Zealand Government commits funds for climate-related actions in annual Budgets each year. It also uses the Emissions Trading Scheme as a tool to help achieve the nation's emissions reduction targets.

Funds have been assigned for specific initiatives/programmes in Budget 2024. However, it is difficult to determine how these Budgets align with the overall climate goals and commitments under the Emissions Reduction Plan and the National Adaptation Plan.

The previous Government established long-term ring-fenced funding to implement the Emissions Reduction Plan and National Adaptation Plan through its Climate Emergency Response Fund.

The Climate Emergency Response Fund has now been disestablished and funding for many of the projects funded by the Climate Emergency Response Fund has been withdrawn. However, Budget 2024 confirms continuing funding for some climate change initiatives previously funded from the Climate Emergency Response Fund.

Future spending for emissions reduction or climate adaptation will be considered through the annual Budget process rather than through a longer-term dedicated ring-fenced fund aligned to the Emissions Reduction Plan and National Adaptation Plan.

The Government has also assessed the climate implications of Budget 2024 by reviewing the climate impacts of a subset of 40 proposals that officials considered could have material emissions impacts.

The Government's climate strategy has a stronger focus on using the Emissions Trading Scheme and complementary measures to reduce emissions.

Therefore, we have given this item a rating of "early implementation". We acknowledge that New Zealand's second Emissions Reduction Plan is currently being prepared.

Related information

Media release (30 May 2024), "Budget supports practical climate action", at beehive.govt.nz

Ministry for the Environment (2024), Responding to a changing climate – The Government's climate strategy, at environment.govt.nz

The Treasury, "The Climate Emergency Response Fund", at treasury.govt.nz

Aide Memoir Climate implications of Budget 24, at budget.govt.nz

Cabinet paper Climate implications of Budget 24, at budget.govt.nz

B. Direct finance tracking

a) The national government has a definition of direct climate finance or similar (i.e., what counts as direct public climate finance); and

b) The national government tracks its direct climate finance.

N

New Zealand does not yet have or apply a definition of climate finance (either direct or indirect) to expenditure. The Ministry for the Environment is currently seeking advice on a sustainable finance taxonomy that could be applied to the public and private sectors in the future.

Without clear definitions and a taxonomy, it is not possible to track direct climate finance. However, New Zealand's public finance system requires each appropriation of funds (including those that are climate related) to have a scope statement setting out the purpose of the funding, with related reporting on financial and non-financial performance at year end.

However, as we found in our 2020 report Analysing government expenditure on natural hazards, there are limitations in solely analysing appropriation scope statements because they are required to be short and are not always specific enough. This means it is difficult to use the information to track climate finance.

Therefore, we have given this item a rating of "no implementation".

New Zealand's Parliamentary Commissioner for the Environment produces an annual assessment of environmental spending and has called for the public finance system to be reformed to make information about such spending more accessible and explicit.

We also note that the Treasury tracked and reported on expenditure under the previous Government's Climate Emergency Response Fund. A final close out report for the fund's spending up to 30 June 2024 is due to be released.

Related information

Russell McVeagh, "Sustainable finance taxonomy on the horizon for New Zealand", at russellmcveagh.com

Ministry for the Environment, "Sustainable finance taxonomy for New Zealand", at environment.govt.nz

Media release (25 March 2024), "Unlocking a sustainable, low-emissions future", at beehive.govt.nz

Parliamentary Commissioner for the Environment (2022), Environmental reporting, research and investment: Do we know if we're making a difference?, at pce.parliament.nz

Controller and Auditor-General (2020), Analysing government expenditure related to natural hazards, at oag.parliament.nz

C. Indirect finance tracking

a) The national government has a definition of indirect climate finance or similar (i.e., what counts as indirect public climate finance); and

b) The national government tracks its indirect climate finance.

N

New Zealand does not yet have or apply a definition of climate finance (either direct or indirect) to expenditure. The Ministry for the Environment is currently seeking advice on a sustainable finance taxonomy that could be applied to the public and private sectors in the future.

Without clear definitions and a taxonomy, it is not possible to track indirect climate finance.

Therefore, we have given this item a rating of "no implementation".

D. Reporting

a) The national government has mechanisms to publicly report on domestic climate finance; and

b) The national government has issued reports on domestic climate finance expenditures.

N

There are some isolated examples of reporting on domestic climate finance, such as reporting related to the Emissions Trading Scheme and financing from Green Bonds. The Treasury also monitored and regularly reported on the previous Government's Climate Emergency Response Fund.

However, because the available reporting is ad hoc and the foundation elements needed for the reporting (that is, being able to identify and track both direct and indirect climate finance, carbon-intensive budgets, and perverse subsidies) are not in place, we have given this item a rating of "no implementation".

Related information

The Treasury, "The Climate Emergency Response Fund", at treasury.govt.nz

The Treasury "Table overview of results - Reporting CERF", at treasury.govt.nz

New Zealand Green Investment Finance (2023), Annual Report 2022-2023, at nzgif.co.nz

Environmental Protection Authority, "ETS reports", at epa.govt.nz

Component: F.2 International climate finance – provider countries (component score: 10)

Item Criteria Rating Comment
A. Commitments set Provider country national government has developed international climate finance commitments that are "new and additional". A

New Zealand has committed to spend NZ$1.3 billion in grant-based climate finance to support developing countries between 2022 and 2025. These commitments include $800 million of "new and additional" climate finance.

New Zealand's International Climate Finance Strategy sets out these commitments, as well as their strategy, goals, and outcomes. These commitments have also been reported in New Zealand's regular reporting to the United Nations Framework Convention on Climate Change.

Therefore, this item meets the requirements for a rating of "advanced implementation".

Related information

Ministry of Foreign Affairs and Trade, "What is climate finance?", at mfat.govt.nz

Ministry for the Environment (2022) Te Rīpoata Taurua Tuarima o Aotearoa: New Zealand's Fifth Biennial Report under the United Nations Framework Convention on Climate Change, Part 5, at unfccc.int

Ministry of Foreign Affairs and Trade (2022), Aotearoa New Zealand International Climate Finance Strategy, Chapter 6, at mfat.govt.nz

Cabinet Paper (11 March 2022), "Aotearoa New Zealand's International Climate Finance Commitment 2022-2025", CAB-21-MIN-0410, at mfat.govt.nz

B. Resources allocated and disbursed

a) Provider country has a budget or other mechanisms (such as technology transfer and capacity building) in place to allocate international climate finance; and

b) Provider country has demonstrated progress toward fulfilling commitments.

A

New Zealand's international climate funding is allocated to specific programmes within the International Development Co-operation Programme. A Climate Portfolio Steering Group within the Ministry of Foreign Affairs and Trade leads decision-making about this funding. This group's recommendations to the final financial decision-makers is guided by the International Climate Finance Strategy.

New Zealand's reporting to the United Nations Framework Convention on Climate Change confirms that progress against the commitments is being made. It is expected that the 2022-25 commitment will be fully delivered.

The Ministry of Foreign Affairs and Trade also regularly reports on activities funded through the International Development Co-operation Programme, including those that are climate related. As well as financial reporting, the reporting to the United Nations Framework Convention on Climate Change confirms that New Zealand has carried out dedicated capacity-building and technology-transfer activities.

Because New Zealand allocates international climate funding to specific programmes in the International Development Co-operation Programme and regularly reports on its commitments, we have given this item a rating of "advanced implementation".

Related information

Ministry of Foreign Affairs and Trade (2022), Aotearoa New Zealand International Climate Finance Strategy, at mfat.govt.nz

Ministry for the Environment (2022) Te Rīpoata Taurua Tuarima o Aotearoa: New Zealand's Fifth Biennial Report under the United Nations Framework Convention on Climate Change, Part 5, at unfccc.int

Ministry for the Environment (2022), Te Whakawhitiwhiti Kōrero Tuawaru ā-Motu o Aotearoa: New Zealand's Eighth National Communication under the United Nations Framework Convention on Climate Change and the Kyoto Protocol, Chapter 7.2, at unfccc.int

"New Zealand Submission on information to be provided by Parties in accordance with Article 9, paragraph 5, of the Paris Agreement", at unfccc.int

C. Reporting

a) The national government has mechanisms to publicly report on international climate finance; and

b) The national government has issued reports on expenditures related to international climate finance.

A

New Zealand reports on its progress against its climate commitments as part of its reporting on the International Development Co-operation Programme. As well as the required reporting to the United Nations Framework Convention on Climate Change, the Ministry of Foreign Affairs and Trade provides regular reporting on its website.

Therefore, we have given this item a rating of "advanced implementation".

Related information

Ministry of Foreign Affairs and Trade (2022), Aotearoa New Zealand International Climate Finance Strategy, Chapter 6, at mfat.govt.nz

Ministry for the Environment (2022) Te Rīpoata Taurua Tuarima o Aotearoa: New Zealand's Fifth Biennial Report under the United Nations Framework Convention on Climate Change, Part 5, at unfccc.int

Ministry of Foreign Affairs and Trade (2023), Annual Report 2022-2023, page 65, at mfat.govt.nz

Ministry of Foreign Affairs and Trade, "Making a difference", at mfat.govt.nz

DevData, "About DevData", at devdata.mfat.govt.nz

Component: F.3 International climate finance – recipient countries

Item Criteria Rating Comment
A. Needs assessment The national government has identified needs for international climate finance. Not applicable as New Zealand is not a recipient country.
B. Sources identified and mobilised

The national government has the capacity to identify and to mobilize climate finance sources.

National government has been able to mobilize these climate finance sources.

Not applicable as New Zealand is not a recipient country.
C. Disbursement overseen The national government has the capacity and mechanisms to oversee disbursement of climate finance. Not applicable as New Zealand is not a recipient country.
D. Reporting The national government has fulfilled the reporting requirements for the financial support received and needed. Not applicable as New Zealand is not a recipient country.

Category: Private climate finance

Component: F.4 Domestic and international private climate finance mechanisms (component score: 1.11)

Item Criteria Rating Comment
A. Mobilisation mechanisms The national government has mechanisms or incentives for mobilizing private climate finance. E

Domestically, there are currently limited mechanisms to mobilise private climate finance. The Emissions Trading Scheme is the main tool for encouraging the private sector to invest in emissions reductions.

However, a recent Climate Change Commission report assessing progress towards reducing emissions raised concerns about uncertainties with the scheme's effectiveness in encouraging investment in reducing emissions because of its design. A 2023 government discussion document on a review of the Emissions Trading Scheme acknowledged these uncertainties.

The previous Government established long-term ring-fenced funding for climate actions through its Climate Emergency Response Fund. The source of the funding was the proceeds of auctions of emissions units under the Emissions Trading Scheme, so this was a direct way for the Government to mobilise private climate finance for its climate-related actions.

This approach for funding climate actions has since been discontinued.

The government-owned climate finance vehicle New Zealand Green Investment Finance Limited aims to attract private sector investment in emissions reduction ventures and activities.

In the agriculture sector, the Government formed a public-private partnership with agribusiness companies in February 2023. The purpose of the partnership, which is called Agrizero, is to support and encourage investment in technologies to reduce agricultural emissions.

The second Emissions Reduction Plan's discussion document refers to other work under way to unlock further private investment. This includes a new mandatory climate-related disclosures regime for large entities that operate in New Zealand's financial markets. This regime aims to support the allocation of capital towards activities that are consistent with a transition to a low emissions climate-resilient future.

In relation to international climate finance, the Ministry of Foreign Affairs and Trade is in the process of setting up a $60 million portfolio for international climate finance activities. This portfolio is deliberately aimed at mobilising private climate finance for developing countries.

Although limited mechanisms are in place to mobilise private climate finance, we can identify plans for improving this mobilisation.

Therefore, we have given this item a rating of "early implementation".

Related information

Ministry for the Environment (2024), New Zealand's second emissions reduction plan (2026–30): Discussion document, at environment.govt.nz

Ministry for the Environment, "New Zealand Emissions Trading Scheme", at environment.govt.nz

New Zealand Green Investment Finance website, at nzgif.co.nz

AgriZeroNZ, "About us", at agrizero.nz.

B. Private finance tracking The national government tracks private climate finance mechanisms. N There are currently no mechanisms to track private climate finance, either domestically or internationally. Therefore, we have given this item a rating of "no implementation".
C. Reporting The national government reports on and shares information on private climate finance. N

There are no mechanisms to track private climate finance, either domestically or internationally, so reporting is not possible. Therefore, we have given this item a rating of "no implementation".

The portfolio for international climate finance activities that the Ministry of Foreign Affairs and Trade is currently setting up (as referred to above) includes a plan to track the private finance mobilised.

The Ministry of Foreign Affairs and Trade expects to start reporting on the mobilisation of international private climate finance in the next Biennial Transparency Report 2026, once implementation of its portfolio is further advanced.