NEW ZEALAND Law and Practice Contributed by: Josh Williams, Anderson Lloyd
Biennial Transparency Reports New Zealand submitted its first Biennial Transparency Report (BTR) in December 2024. It confirmed that it was on track to meet the domestic share of its Paris Agreement target, in large part through sequestration via the ETS. However, much of New Zealand’s tar - get under the Paris Agreement is to be achieved via offshore reductions, and the BTR has not disclosed how this remainder will be met. The government has not been clear on how these offshore reductions will be reached, with the Climate Change Minister stating that “the government has no formal plans to purchase offshore”. Climate Change Policy New Zealand legislated its role in addressing climate change through the Climate Change Response Act 2002 (CCRA) and established a national ETS in 2008. In 2019, the CCRA was substantially amended to intro - duce the emissions budget and ERP mechanisms, as well as to establish the Climate Change Commission. Emissions budgets are intended to act as “stepping stones” towards New Zealand’s net zero 2050 domes - tic target. They set out the maximum quantity of net carbon dioxide equivalent emissions that New Zea - land is to emit over a five-year period. New Zealand’s emissions budgets are currently as follows.
sector, as well as on the continued sequestering of carbon by the forestry sector, as key to meeting their respective emissions budgets. Under the forecasts set out in ERP2, New Zealand is expected to achieve EB2, but to fall short of meeting EB3. 2.2 Constitutional Framework for the National Legal Regime for Climate Change Constitutional Position The CCRA and the RMA are not part of New Zealand’s “unwritten” constitution and are not “entrenched”, which means they can be repealed with a 50% major - ity in parliament. New Zealand’s constitutional framework, with its separation of powers between the judiciary and par - liament, means climate change is in the domain of a political and policy response. While other countries have seen courts adjudge constitutional and human rights issues with regard to climate change, includ - ing holding governments responsible for inaction on climate mitigation, New Zealand’s legal system has not previously provided for this. However, a recent Supreme Court decision may result in a shift in that situation. In Smith v Fonterra Co - Operative Group Ltd , the Supreme Court declined to strike out claims in nuisance, negligence and a proposed novel tort of “climate system damage” against seven corporate defendants who were each involved in either an indus - try that emits greenhouse gases or one that manu - factures and supplies products that emit greenhouse gases when used. Whether the claim will ultimately be successful remains to be seen, but this case rep - resents the potential evolution of the common law on climate change in New Zealand. 2.3 National Legal Regime Stance on Primacy Climate Change Issues Mitigation Domestically, New Zealand has taken a number of steps towards climate change mitigation. It has: • legislated emissions reduction targets; • implemented an “emissions budget” system, set - ting out the pathway to its emissions targets in five-year periods; • implemented an “emissions reduction plan” (ERP) system, under which it communicates to the public
• 2022–2025: 290 MtCo2e (EB1). • 2026–2030: 305 MtCo2e (EB2). • 2031–2035: 240 MtCo2e (EB3).
Prior to the release of each emissions budget, the gov - ernment is required to release an ERP setting out how the policies and strategies are to be used to hit the targets of the next emissions budget. New Zealand’s first ERP was released in May 2022 (ERP1), and set out the means via which the government intended to achieve EB1. ERP1 has proven a success, with New Zealand on track to meet EB1. The government has recently released the second ERP for the EB2 period (ERP2). While ERP1 heav - ily emphasised emissions reductions in the trans - port sector, ERP2 is relying on anticipated emissions reductions in the agriculture sector. Both ERP1 and ERP2 also rely on emissions reductions in the energy
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