Business
Government Promises Action on Climate Goals Amid Growing Criticism

The New Zealand Government has committed to exploring “opportunities for earlier action” in response to a warning from the Climate Change Commission about the increasing risk of missing its climate change targets. This announcement follows a report issued in July 2023, which indicated that the country could fall short of its goal of achieving net zero carbon emissions by 2050. While the Government’s statement lacks detailed plans, it emphasizes the need for careful consideration of timing for actions needed to bridge the gap between the country’s carbon budget and forecast emissions from 2031 to 2035.
In the report, Jo Hendy, the commission’s chief executive, highlighted that the current policy framework is insufficient to meet the emissions reduction targets. Hendy stated that “urgent action” is necessary to align New Zealand’s policies with its climate commitments. The commission described the nation as being at a “fork in the road,” suggesting that significant policy changes are required to avoid failing in its climate goals.
The commission’s recommendations included the adoption of targeted policies beyond the existing Emissions Trading Scheme. These suggestions encompass transitions to renewable energy, enhanced public transport, and low-emissions agricultural practices. Specifically, the commission proposed land-use changes in farming, incentives for electric vehicles (EVs), and subsidies for hydrogen refueling stations for trucks.
Despite existing measures, the commission forecasted a shortfall of two million tonnes in annual carbon emissions reductions between 2031 and 2035, even if all current initiatives are successful. It further warned of “significant risks” to achieving planned reductions, with minimal certainty about the effectiveness of technological innovations relied upon to mitigate methane emissions from livestock.
In its 16-page response to the 153-page monitoring report, the Government reiterated that the Emissions Trading Scheme would remain central to its climate strategy. It stated that policies would be implemented to reduce barriers to investment in emission reductions. The Government emphasized its belief that New Zealand could achieve economic growth while meeting its climate commitments.
Climate Change Minister Simon Watts dismissed claims that the Government prioritizes economic growth over climate action. He stated, “The Government has made it very clear that we’re committed to our climate targets.” Responding to the commission’s concerns about relying heavily on uncertain technological solutions for agriculture, the Government acknowledged the need for a diverse range of mitigation strategies.
Adding to the complexity of the situation, the Government recently announced a reduction in its methane emissions target from a minimum of 24% to at least 14% from 2017 levels by 2050. Watts explained that the change aimed to establish practical targets for farmers, stating that a climate solution that jeopardizes the agricultural sector is counterproductive.
This decision has drawn criticism from various quarters. Deborah Russell, Labour’s climate change spokesperson, accused Prime Minister Christopher Luxon of weak leadership and yielding to pressure from coalition partners. Robert McLachlan, a professor at Massey University, characterized the reduced methane target as a significant setback for environmental progress.
As the Government grapples with balancing its climate commitments and economic considerations, the pressure to act decisively grows. The response to the Climate Change Commission’s warnings will play a crucial role in determining New Zealand’s trajectory toward its climate goals and the potential impact on future generations.
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