Net Zero by 2050: Evaluating the Effectiveness and Challenges of New Zealand’s Zero Carbon Act

The Climate Change Response (Zero Carbon) Amendment Act 2019 signifies a landmark shift in New Zealand’s legislative landscape.

Authors: Harsh Mahaseth and Sadqua Khatoon

The Climate Change Response (Zero Carbon) Amendment Act 2019 signifies a landmark shift in New Zealand’s legislative landscape, introducing a comprehensive framework aimed at tackling climate change while aligning with global commitments under the Paris Agreement to limit the rise in global average temperature below 1.5˚ C from pre-industrial levels. Central to its efficacy are ambitious emission reduction targets, including achieving net zero emissions for all greenhouse gases except biogenic methane by 2050, along with specific targets for biogenic methane reduction by 2050 and interim goals for 2030. These targets provide a clear path for emissions reduction, offering a structured approach to tracking progress and guiding policy interventions.

Since the enactment of the Zero Carbon Act, New Zealand has seen a stabilization of gross emissions since 2006, with a 0.7% decrease in 2021, particularly notable in the agriculture sector. Investments in renewable energy have surged, driving innovation and job creation while reducing emissions. Proactive measures under the Act have bolstered resilience to climate change impacts, mitigating risks from extreme weather events and sea-level rise. Moreover, the introduction of emissions budgets establishes incremental milestones towards long-term emission reduction objectives. By mandating successive governments to adhere to these budgets, the Act ensures continuity in climate action, fostering accountability and consistency in policy implementation. The establishment of an independent Climate Change Commission further bolsters the Act’s effectiveness by providing expert advice and oversight, thereby enhancing the nation’s ability to meet its climate goals.

However, the Act is not without its challenges and criticisms. Divergent perspectives, exemplified by critiques from ACT New Zealand, highlight concerns regarding the efficacy and economic implications of the legislation. Critics argue that the current approach emphasises bureaucratic interventionism at the expense of pragmatic, market-driven solutions. They contend that the associated costs of compliance may outweigh the environmental benefits, posing economic burdens on industries and households. New Zealand’s climate action efforts, as of the latest assessment in March 2023, fall short of aligning with global climate goals. Despite setting a net zero emissions target by 2050 under the Zero Carbon Act, its short-term policies lack the ambition needed to achieve this goal. The country’s updated NDC target, although seemingly stronger, relies on misleading accounting methods, resulting in an effective reduction in net emissions of only 22% below 2005 levels by 2030. New Zealand plans to purchase international offsets to meet its NDC target, raising concerns about the quality and volatility of such offsets. The government’s reliance on the emissions trading scheme (NZ-ETS) to prioritise emissions reductions lacks significant policy enhancements, particularly in addressing agricultural methane emissions, which represent over 43% of the country’s total emissions. Overall, the Climate Action Tracker rates New Zealand’s climate targets, policies, and finance as ‘Highly insufficient.’ ’Furthermore, the Act’s reliance on emissions budgets and targets necessitates rigorous enforcement mechanisms and robust policy instruments to ensure compliance. Monitoring progress, particularly in sectors with significant emissions, requires comprehensive data collection and reporting mechanisms, posing logistical challenges for implementation. Additionally, the transition to a low-carbon economy may require substantial investments in infrastructure and technology, necessitating careful planning and resource allocation.

Despite these challenges, the Zero Carbon Act represents a significant step forward in New Zealand’s climate change governance. As authors, we see the Act as a necessary and positive step towards addressing climate change comprehensively. We would likely highlight the Act’s ambitious targets and structured approach as essential for guiding policy interventions and tracking progress. While acknowledging challenges, we view the Act as a crucial tool in enhancing New Zealand’s resilience to climate change impacts and fulfilling its international commitments under the Paris Agreement. We may also emphasise the Act’s emphasis on proactive adaptation measures as a forward-looking approach to climate policy, acknowledging the inevitability of climate change impacts and the need for strategic planning and preparedness. Overall, we believe that the Act lays a solid foundation for New Zealand’s climate change mitigation and adaptation efforts, despite the challenges that remain in ensuring effective implementation and navigating international dynamics.

*Sadqua Khatoon is a law student at Aligarh Muslim University, India.

Harsh Mahaseth
Harsh Mahaseth
Harsh Mahaseth is an Assistant Professor and Assistant Dean (Academic Affairs) at Jindal Global Law School, and the Assistant Director of the Nehginpao Kipgen Center for Southeast Asian Studies at O.P. Jindal Global University, India.