History of NZ Climate Laws
The history of NZ climate laws traces the evolution of legislative frameworks from the 1991 Resource Management Act to the landmark 2019 Zero Carbon Act. This progression reflects New Zealand’s transition from general environmental protection toward specific, legally binding targets aimed at achieving net-zero greenhouse gas emissions by 2050.
Early Environmental Legislation: The Foundation
Before climate change became a central pillar of New Zealand’s legislative agenda, environmental protection was managed through broader frameworks. The mid-1980s marked a significant shift in how New Zealand approached its natural resources, leading to the creation of the Ministry for the Environment and the Department of Conservation under the Environment Act 1986.
The Resource Management Act 1991 (RMA)
The Resource Management Act 1991 was a world-first piece of legislation that integrated the management of land, air, and water. While its primary focus was ‘sustainable management,’ its role in climate policy was initially limited. In its early years, the RMA did not explicitly require local authorities to consider the global effects of greenhouse gas emissions when granting resource consents. This was a deliberate choice to avoid a fragmented approach to a global problem, favoring national-level regulation instead.
The 2004 Amendments
It wasn’t until the Resource Management (Energy and Climate Change) Amendment Act 2004 that the RMA was updated to require local authorities to have particular regard to the effects of climate change. However, this amendment also restricted councils from considering the effects of greenhouse gas emissions on climate change when making rules or considering applications for discharge permits, reinforcing that carbon regulation should be handled at the national level through the Emissions Trading Scheme.
The Kyoto Protocol Era: International Commitments
The late 1990s and early 2000s saw New Zealand enter the international stage of climate diplomacy. As a signatory to the Kyoto Protocol, New Zealand committed to reducing its greenhouse gas emissions to 1990 levels between 2008 and 2012.
The Climate Change Response Act 2002
To meet its international obligations, the New Zealand government passed the Climate Change Response Act 2002. This foundational law created the legal framework to manage New Zealand’s obligations under the Kyoto Protocol and the United Nations Framework Convention on Climate Change (UNFCCC). It established the powers of the Minister of Finance to manage New Zealand’s holdings of emission units and set up the National Registry.
The ‘Fart Tax’ Controversy
In 2003, the government proposed a research levy on agricultural emissions, famously dubbed the ‘fart tax’ by the media and farming community. The massive backlash from the agricultural sector led to the proposal being scrapped, highlighting the political difficulty of regulating New Zealand’s largest source of emissions: methane from livestock. This event delayed the inclusion of agriculture in climate pricing for decades.
The Evolution of the Emissions Trading Scheme
The centerpiece of New Zealand’s climate policy for over a decade has been the Emissions Trading Scheme (NZ ETS), introduced by the Climate Change Response (Emissions Trading) Amendment Act 2008.
The 2008 Framework
The NZ ETS was designed to be an all-sectors, all-gases scheme—the first of its kind in the world. By putting a price on carbon, the government aimed to provide a financial incentive for businesses to reduce emissions and for landowners to plant forests. However, the scheme underwent significant changes following a change in government later that year.
The Moderated Scheme and International Units
Under the National-led government in 2009, the ETS was ‘moderated.’ A ‘one-for-two’ deal was introduced, allowing participants to surrender one unit for every two tonnes of emissions. Furthermore, the scheme allowed the unlimited use of international carbon units. By 2012, the price of these international units collapsed, leading to a period where the NZ ETS had almost no impact on domestic emission reductions as businesses bought cheap, often low-integrity units from overseas.
Transitioning to a Domestic Market
Recognizing the failure of the international unit link, the government delinked the NZ ETS from international markets in 2015. This forced the scheme to become a domestic-only market, which eventually led to a rise in carbon prices and a renewed focus on domestic decarbonization. The ‘one-for-two’ subsidy was also phased out between 2016 and 2019.
The Road to the Zero Carbon Act
The 2015 Paris Agreement was a turning point. New Zealand committed to more ambitious targets, but it became clear that the existing 2002 Act was insufficient for long-term planning. There was a growing demand for a ‘non-partisan’ approach to climate policy that could survive changes in government.
The Role of Generation Zero
A youth-led organization called Generation Zero was instrumental in drafting the initial concept of the Zero Carbon Act. They campaigned for a UK-style climate law that would establish an independent commission and legally binding carbon budgets. This grassroots movement gained significant traction, eventually finding support across the political spectrum.
The 2017 Change in Government
The election of the Labour-New Zealand First-Green coalition in 2017 provided the political mandate to turn the Zero Carbon proposal into law. James Shaw, the Minister for Climate Change, led a nationwide consultation process to build consensus among the public, industry, and political parties.
Understanding the Zero Carbon Act 2019
The Climate Change Response (Zero Carbon) Amendment Act 2019 is the most significant piece of climate legislation in New Zealand’s history. It amended the 2002 Act to provide a framework by which New Zealand can develop and implement clear and stable climate change policies.
The 2050 Targets
The Act set into law a new domestic greenhouse gas emissions reduction target for New Zealand to reduce net emissions of all greenhouse gases (except biogenic methane) to zero by 2050. For biogenic methane, the Act set a target to reduce emissions to 10% below 2017 levels by 2030, and between 24% and 47% below 2017 levels by 2050. This ‘split-gas’ approach recognizes the different atmospheric lifetimes of methane versus carbon dioxide.
The Climate Change Commission
One of the Act’s key features was the establishment of the Climate Change Commission. This independent body provides expert advice to the government on emissions budgets and adaptation measures. While the government is not strictly bound to follow the Commission’s advice, they must provide a public explanation if they choose to deviate from it, ensuring a high level of transparency and accountability.
Emissions Budgets
The Act introduced a system of five-year emissions budgets. These budgets act as ‘stepping stones’ toward the 2050 target. The government is required to publish an Emissions Reduction Plan for each budget, outlining the specific policies and strategies that will be used to meet the limit.
Future Challenges and Adaptation
While the Zero Carbon Act provides the framework, the implementation remains a challenge. The integration of agriculture into a pricing mechanism remains a contentious issue, with the ‘He Waka Eke Noa’ partnership between government and industry facing significant hurdles.
Climate Adaptation and Managed Retreat
As the effects of climate change become more apparent through extreme weather events like Cyclone Gabrielle, the legislative focus is shifting toward adaptation. The government is currently developing a Climate Adaptation Act to address the complex legal and financial issues surrounding ‘managed retreat’—the process of moving communities away from high-risk areas like floodplains and eroding coastlines.
Conclusion
The history of NZ climate laws is a journey from vague environmental aspirations to concrete, science-based legislative targets. While the path has been marked by political debate and policy shifts, the Zero Carbon Act now provides a stable foundation for New Zealand’s transition to a low-emissions future. The focus now turns from passing laws to the difficult work of sector-by-sector decarbonization and building resilience against an already changing climate.
When did New Zealand pass its first climate law?
The first specific climate legislation was the Climate Change Response Act 2002, which was created to meet New Zealand’s obligations under the Kyoto Protocol. Earlier laws like the Resource Management Act 1991 touched on environmental issues but did not focus specifically on greenhouse gas regulation.
What is the NZ Zero Carbon Act?
The Zero Carbon Act (2019) is an amendment to the Climate Change Response Act that sets a legally binding target for New Zealand to reach net-zero greenhouse gas emissions by 2050, establishes the Climate Change Commission, and introduces five-year emissions budgets.
How does the NZ Emissions Trading Scheme work?
The NZ ETS is a market-based tool where ’emitters’ must buy and surrender New Zealand Units (NZUs) to cover their emissions. One NZU represents one tonne of carbon dioxide equivalent. The government limits the supply of units to encourage emission reductions.
What are New Zealand’s 2050 climate targets?
New Zealand aims for net-zero emissions of long-lived gases (like CO2 and nitrous oxide) by 2050. For biogenic methane, the target is a 10% reduction by 2030 and a 24-47% reduction by 2050, relative to 2017 levels.
Why is the Resource Management Act important for climate change?
The RMA is the primary law for land use and resource planning. Recent reforms have restored the ability of local councils to consider greenhouse gas emissions when making planning decisions, making it a key tool for local climate action and adaptation.
How has NZ responded to the Paris Agreement?
New Zealand responded to the Paris Agreement by passing the Zero Carbon Act 2019, which aligns domestic law with the goal of limiting global warming to 1.5 degrees Celsius, and by submitting Nationally Determined Contributions (NDCs) to the UN.
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