New Zealand

New Zealand falls seven places to rank 41st in this year’s CCPI, remaining an overall low performer. The country rates high in Renewable Energy, low in Climate Policy, and very low in GHG Emissions and Energy Use.

A new government was elected in October 2023, and the CCPI country experts note that it has taken significant backwards steps in climate policy. It is unclear how New Zealand will meet its international climate obligations or its 2050 emissions reduction target. Concerningly, the country’s independent Climate Change Commission has warned that the country is not on track to meet this target.

50% of the Country’s GHG Emissions Come from the Agricultural Sector

The Climate Change Response Act 2002, amended in 2019 following the Paris Agreement, is the overarching legislative framework in New Zealand. Key features include a target for net zero GHG emissions (excluding biogenic methane) by 2050 and emissions budgets every five years accompanied by Emissions Reduction Plans. New Zealand is on track to meet the current emissions budget (2022–2025) and is finalising a plan for meeting the next one (2026–2030). The framework remains unchanged under the new government; however, critical ring-fenced emissions reduction funding (Climate Emergency Response Fund) has been reappropriated to support other, unrelated initiatives.

New Zealand has an Emissions Trading Scheme (ETS) that covers most emitting sectors and that the experts see as the only real regulatory tool for reducing GHG emissions. However, around 50% of the country’s GHG emissions come from the agricultural sector, which is not included in the ETS, and the new government is further extending the timeframe for including agriculture in the ETS. It was due to be included from 2025 and is now being pushed back to 2030. Because agriculture is such an important sector, the experts also criticise the net zero target of the Climate Change Response Act, which excludes biogenic methane. The experts criticise the government’s reliance on international emissions trading to meet its current NDC, and that the ETS treats GHG emissions and removals equally – this has led to excessive exotic afforestation instead of gross emissions reductions. The experts are also concerned that the government is considering amending New Zealand’s domestic biogenic methane reduction target. This amendment would result in less ambitious methane reductions and effectively give New Zealand a license to continue its high rate of methane emissions.

Very Little New Renewable Generation Has Been Built in a Decade

Most (80–85%) of New Zealand’s electricity is generated from renewable sources, but this is because of historical reliance on large hydroelectric dams rather than intentional climate policy. Very little new renewable generation has been built in a decade and the new government has pledged to lift the 2018 ban on new offshore oil and gas exploration. The experts condemn the absence of plans to phase out producing or consuming oil, gas, and coal. The government is also introducing a new fast-track law to bypass environmental regulations and public consultation, including allowing development of new coal mines. It also had proposed fast-tracking a new liquefied natural gas import facility.

The experts criticise the new government for cutting most of the transport policies that were modelled to deliver the largest GHG emissions reductions in the sector. The government has reduced spending on public transport while increasing spending on road building. Support for electric and low-emission vehicles also has been removed.

Internationally, the experts note that while New Zealand is still operating under a progressive and ambitious NDC following the Paris Agreement, there is no clear plan for meeting the NDC. In plans for meeting it thus far, New Zealand relies most heavily of all Paris Agreement parties on offshore mitigation. New Zealand also is an associate member of the Beyond Oil and Gas Alliance (BOGA) and a member of the Global Methane Pledge, though it may no longer meet the BOGA membership criteria and risks being ejected. The country provides climate resilience funding to the Pacific region, but less than what the experts deem appropriate for the country. Moreover, that climate finance budget allocation expires in 2025 and may not be renewed.

The experts recommend that New Zealand maintain its offshore oil and gas ban and significantly amend or scrap the fast-track law for bypassing environmental regulations. GHG emissions reductions should be more ambitious overall, without relying heavily on offsets. The experts also call for greater consideration of agricultural GHG emissions, particularly those from the intensive dairy industry, including them in the ETS.

Key Outcomes

CCPI Experts

• Dr Kayla Kingdon-Bebb (WWF-New Zealand)
• Lawyers for Climate Action NZ
• David Tong (Oil Change International)