New Zealand has unveiled a second international climate target that aims to cut GHG emissions by 51-55% from 2005 levels by 2035. The target includes all sectors of the New Zealand economy and all GHGs. The sectors most affected by this decision include industrial processes, energy, and product use, land use, land-use change and forestry (LULUCF), waste, and agriculture. 

The new target may lead private market firms, impact investors, and asset managers to change their current sustainability strategies, as the adjustments are likely to prompt a shift in focus or investment in low-emission technologies, 

Let’s explore the controversial GHG emissions cut by New Zealand in detail. 

About New Zealand’s 51-55% emission cut by 2035

New Zealand announced the target by submitting its next five-year climate plan in a Nationally Determined Contribution (NDC) document to the climate body of the United Nations, the United Nations Framework Convention on Climate Change (UNFCCC), under the Paris Agreement. Initially, in the year 2021, the country set the target of 50% emission reduction from 2005 levels by 2030, so the new targets are not significantly increasing from the previous ones, which is creating concerns among environmentalists and scientists.  

“We are already laying the foundation for meaningful emissions reductions, with the potential to meet our net zero target as early as 2044. This will mean greater innovation originating here in New Zealand to advance low-emission technologies that grow our economy.” said Simon Watts, Climate Change Minister of New Zealand. 

Key aspects of GHG emissions cut by New Zealand

• New Zealand's target aims to align both domestic and international climate goals, which focus on significant actions across different sectors, including energy, agriculture, and waste management. Given that agriculture accounted for over 53% of emissions in 202, the strategy focuses more on reducing agriculture through technology. 
• In the plan, the Government highlighted strengthening its Emission Trading Scheme and investing in sustainable innovations to facilitate GHG reductions. 

• The Government claims that the new target is ambitious and achievable, but it is receiving mixed feedback from experts, critics, and environmentalists. Some climate experts are labeling the new targets as “shockingly unambitious,” noting that they only represent a 1% increase in reductions from the previous target set for 2030. 

• While most critics may not view new targets optimistically, they align with the climate goals to achieve net zero emissions by 2050. Watts mentioned, “This target also brings our international and domestic climate change commitments into line, so we can focus our efforts on the actions that will make the biggest difference towards reaching our net zero 2050 target.”

Looking ahead

The third emissions reduction plan (or the next one) will be published in 2029. It will include policies to further assess and reduce emissions during the 2031-2035 period. 

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