GHG Emissions  -  May 17, 2022

New Zealand Creates Emission Reduction Plan

Aotearoa New Zealand released the country’s first emissions reduction plan and will ensure wider system-settings to support the goals, including emissions pricing, funding and finance, research, science and innovation system as well as the planning and infrastructure systems. 

The Climate Emergency Response Fund has been set up to support this transition as an enduring multi-year funding mechanism with an initial $4.5 billion ‘down payment’ supported by cash proceeds from the NZ ETS. 

For each emissions budget, there will be a new emissions reduction plan and a new opportunity for New Zealanders to have their say in how the country transitions to a low-emissions future.  

The next plan must be published by 31 December 2024. 

“Today’s announcement means our net-zero future is closer than ever before,” said Climate Change Minister James Shaw in a statement. “There’s much more to do, but having these binding budgets in place is a critical part of our strategy to rapidly cut out the pollution that causes climate change. “Meeting the budgets will help to create new industries and high-value jobs; lower household energy bills; a more climate-friendly agriculture sector; warmer, drier homes; exciting new technologies; the protection of native species and eco-systems; cost savings for businesses; and greater resilience in the face of increasing global uncertainty.” 

The government’s long-term target is to reach net-zero by 2050, he said. 

“To keep all future Governments on track towards meeting the net-zero goal, the Zero Carbon Act established a system of five-yearly emissions budgets that would act as stepping stones towards the 2050 target,” Shaw said. 

The Cabinet agreed that the first three emissions budgets will be:

• Emissions Budget 1 (2022–2025): 290 megatonnes of carbon dioxide equivalent GHG gasses (72.4 megatonnes per year)
• Emissions Budget 2 (2026–2030): 305 megatones (averages 61 megatonnes per year) [in principle]
• Emissions Budget 3 (2031–2035): 240 megatonnes (48 megatonnes per year) [in principle]