Responding to a Productivity Commission inquiry that found a transition to a strong zero-carbon economy is achievable with the right policies in place New Zealand’s Labor-led government has unveiled the country’s Climate Action Plan.
Green Party Climate Change Minister James Shaw released the cross-government climate plan and said the plan was in response to the Productivity Commission’s inquiry into the low emissions economy.
The New Zealand government immediately accepted the majority of the commission’s recommendations, and has committed to continue consideration of the remaining recommendations.
Many of the recommendations related to reforms to the New Zealand Emissions Trading Scheme, with the NZ Productivity Commission identifying opportunities for the market-based mechanism to be strengthened.
Such reforms would drive further investment in lowering emissions without the need to develop a completely new mechanism, such as a carbon price, to put a price on greenhouse gas emissions.
Following the recommendations, the NZ government will establish an independent climate change commission to provide ongoing advice and guidance to the government.
Mr Shaw told Radio New Zealand, “This is a massive work program right across government that will run for many years.
“It will lead to fundamental changes to how we get around our cities, how we heat our homes, how we farm, and how we dispose of waste.”
Mr Shaw said the government agreed to 43 of the recommendations from the commission, and it would also do more work on the remaining 33.
The plan includes emissions pricing and investigating a rebate scheme as part of the low-emissions vehicle package.
Mr Shaw said calling climate changes a crisis, is not alarmism.
“To suggest this isn’t a crisis, isn’t an emergency, is at best uninformed and at worst misleading.”
Mr Shaw announced last week that reforms to the NZ ETS would see the gradual phase-out of free emissions permit allocations to large industrial emitters.
By phasing out the free allocations, the NZ government hopes to incentivise further investments in emissions reductions from industrial operations and spur greater participating in the NZ emissions trading scheme.
Since the election of the Labor led government under Prime Minister Jacinda Ardern and the appointment of Mr Shaw as the climate change minister, New Zealand has demonstrated strong leadership on climate change policy.
This has included the introduction of legislation that will establish a zero-carbon target in law.
New Zealand has established interim emissions reduction targets, including a commitment to reduce emissions by 30 per cent by 2030, establishing a trajectory towards reaching zero net emissions by 2050.
At the same time New Zealand faces challenges, particularly relating to the significant role that agriculture plays in both its economic exports, and representing around half of the country’s greenhouse gas emissions.
The government has sought ways to effectively shield the agricultural sector from bearing the full burden for emissions reductions and the sector will retain the full value of its free permit allocations.
Mr Shaw said, “Our government is committed to a just and rapid transition to a low emissions economy, because it’s vital that we play our part looking after our planet.
“We’re already taking action on many of the Productivity Commission’s recommendations.
“Climate change is an urgent issue requiring an urgent response, to ensure a stable climate for future generations of New Zealanders,” Mr Shaw added.
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