New Zealand has introduced its second emissions reduction plan, setting a greenhouse gas emissions cap of 305 million tonnes of CO2 equivalent (tCO2e) for 2026-2030. The government remains optimistic about achieving its 2050 net-zero target, despite minor shortfalls in previous goals.
According to the Ministry for the Environment, emissions are expected to fall short of the 2022-2025 target by 5.9 million tCO2e and the 2026-2030 target by 1.9 million tCO2e. Under the Climate Change Response Act, New Zealand aims for net-zero emissions by 2050 for all greenhouse gases except biogenic methane, which has specific reduction goals of 10% below 2017 levels by 2030 and 24-47% by 2050.
The new plan prioritises eight impactful policies to achieve these objectives. Key initiatives include expanding renewable energy, developing 10,000 EV charging points by 2030, and implementing agricultural emissions pricing. Additional measures target carbon capture, improved organic waste management, and reforestation on Crown-owned land. Together, these efforts are projected to reduce emissions by 3.2 million tCO2e by 2026 and 17.1 million tCO2e by 2030.
The Emissions Trading Scheme (ETS) plays a central role in the updated strategy. Proposed reforms focus on stabilising governance, boosting transparency, and aligning the ETS cap with emissions targets. The government has also reduced carbon credit availability for 2025-2029, aiming to reinforce the ETS's credibility and stimulate private-sector investment.
Matthew Cowie of EY New Zealand commended the government’s pledge to avoid differentiating forestry credits, which could lead to ETS prices being influenced by forestry supply costs.
New Zealand recently concluded public consultation on its 2031-2035 Nationally Determined Contribution under the Paris Agreement, paving the way for further progress in its environmental commitments.