Part 3: Climate change arrangements in New Zealand
New Zealand is committed to emissions reduction targets under the Paris Agreement
3.1
The Paris Agreement is an international treaty on climate change. It was negotiated by 196 parties and covers climate change mitigation, adaptation, and finance. The objectives of the Paris Agreement are to:
- keep the global average temperature well below 2°C above pre-industrial levels, while pursuing efforts to limit the temperature increase to 1.5°C;
- strengthen the ability of countries to deal with the effects of climate change; and
- make sure that financial flows support the development of low-carbon and climate-resilient economies.
3.2
New Zealand signed the Paris Agreement in 2016. The agreement, which took effect in 2020, commits New Zealand to meeting the emissions targets of the Paris Agreement and regularly updating the United Nations on its progress towards these targets.
Nationally Determined Contribution
3.3
As part of New Zealand's commitment to the Paris Agreement, it must submit a Nationally Determined Contribution. A Nationally Determined Contribution outlines the contributions a country will make to meet the goals of the Paris Agreement.
3.4
New Zealand submitted its first Nationally Determined Contribution in 2016 and updated it in November 2021. New Zealand is due to submit its next Nationally Determined Contribution to the United Nations Framework Convention on Climate Change in 2025. It will cover the five-year period starting from 2031.
The Climate Change Response Act 2002 provides a framework for setting and meeting climate change commitments
3.5
The Climate Change Response Act 2002 (the Act) sets greenhouse gas emissions reduction targets for New Zealand. These targets are to:
- reduce net emissions of all greenhouse gases (except biogenic methane) to zero by 2050; and
- reduce emissions of biogenic methane to 24%-47% below 2017 levels by 2050, including to 10% below 2017 levels by 2030.
The Government must prepare plans and strategies to meet its climate change commitments
3.6
The Act also sets out requirements for the Government to prepare specific plans and strategies to meet its climate change commitments. We discuss some of these below.
National Climate Change Risk Assessment
3.7
The National Climate Change Risk Assessment identifies the most significant climate change risks and opportunities for New Zealand. It also highlights gaps in the information and data needed to properly assess and manage these risks and opportunities.
3.8
The Ministry for the Environment prepared New Zealand's first National Climate Change Risk Assessment in August 2020. The Act requires that a new National Climate Change Risk Assessment be prepared every six years.12 The Climate Change Commission is responsible for preparing the next National Climate Change Risk Assessment, which is due in 2026.
National Adaptation Plan
3.9
The National Adaptation Plan sets out actions to respond to the risks identified in the National Climate Change Risk Assessment. The Ministry for the Environment prepares the National Adaptation Plan on behalf of the Minister of Climate Change.
3.10
The National Adaptation Plan must set out the Government's objectives for adapting to the effects of climate change and the strategies, policies, proposals, and time frames for meeting those objectives.
3.11
New Zealand's first National Adaptation Plan was published in August 2022. It sets out the Government's actions for enabling better risk-informed decisions, driving climate-resilient development in the right locations, helping communities assess adaptation options, and embedding climate change resilience into all of the Government's work.
3.12
The second National Adaptation Plan is intended to be published in 2028.
Emissions budgets
3.13
To meet the targets set out in the Act, emissions budgets set a maximum quantity of emissions to be released during a specific period.
Emissions Reduction Plan
3.14
The Ministry for the Environment prepares the Emissions Reduction Plan on behalf of the Minister of Climate Change. This plan sets out the policies and strategies for meeting the emissions budget. The first Emissions Reduction Plan was published in May 2022.
3.15
The second Emissions Reduction Plan went out for public consultation in July 2024 and will be published at the end of 2024. It outlines the actions that the Government intends to take to reduce emissions in New Zealand for the next five years. The second Emissions Reduction Plan focuses on sectors that have a significant effect on emissions, including energy, transport, agriculture, forestry, and waste.
Several entities monitor government progress on the plans and strategies
The Climate Change Chief Executives Board
3.16
The Climate Change Chief Executives Board was legally established as an interdepartmental executive board in July 2022.13 The Board provides advice on the Government's response to climate change and supports the successful implementation of the Emissions Reduction Plan.14
3.17
The Board monitors and reports on the delivery of actions in the Emissions Reduction Plan and National Adaptation Plan. It advises on the two plans' overall effectiveness and future direction. It also ensures that domestic emissions budgets are met.
3.18
The Board provides advice to Ministers and makes strategic decisions in keeping with Ministerial direction on New Zealand's approach to delivering Emissions Reduction Plans. The Board's decisions focus on system-wide issues where policy applies to multiple portfolios and public organisations.
3.19
The Board's statement of intent also says that it will engage with businesses that have carbon reduction programmes that intersect with government policy.15
3.20
A Cabinet decision in August 2022 assigned responsibility to the Board for overseeing the overall implementation of the National Adaptation Plan. The Board is required to periodically assess the sufficiency of the National Adaptation Plan. It also reports to the Prime Minister and advises whether course corrections are needed.
3.21
A unit has been set up to provide secretariat support to the Board. The Ministry for the Environment hosts this unit.
Climate Change Commission
3.22
An independent Climate Change Commission was set up in November 2019. The Commission's purpose is to:
- monitor and review the Government's progress towards its emissions reduction and adaptation goals; and
- provide advice to the Government on climate change mitigation and adaptation. This includes advice on Emissions Reduction Plans, including on the direction of the required policy.
3.23
The Commission has to report on progress towards the emissions budgets annually and on the progress of the National Adaptation Plan every two years. It published its first reports on the progress of these plans in July and August 2024 respectively.16
12: See section 5ZQ of the Climate Change Response Act 2002, at legislation.govt.nz.
13: The Climate Change Chief Executives Board was created under section 26 of the Public Service Act 2020.
14: The Board is made up of the chief executives of the Ministry for the Environment, the Treasury, the Department of Conservation, the Ministry for Primary Industries, the Ministry of Business, Innovation and Employment, the Ministry of Transport, the Department of Internal Affairs, and the National Emergency Management Agency.
15: Climate Change Chief Executives Board (2023), Statement of intent: 2023-2027, at environment.govt.nz.
16: See "Monitoring and reporting" at climatecommission.govt.nz.