Emissions Reduction Plan
New Zealand is on the path to a low emissions, climate resilient future. Government has set into law a target for net zero greenhouse gas emissions by 2050 (other than for biogenic methane). The Emissions Reduction Plan is one mechanism we are using to focus our collective efforts toward transitioning to a more resilient, low emissions economy.
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The Emissions Reduction Plan will set out policies and strategies to decarbonise every sector of the economy, including the Energy and Industry sectors.
Why has Government set Emissions Budgets and an Emissions Reduction Plan?
New Zealand has committed to both international and domestic emissions reduction targets.
Greenhouse gas emissions targets and reporting(external link) — Ministry for the Environment
The Climate Change Response Act 2002 requires the Government to set emissions budgets, following recommendations from the Climate Change Commission. An emissions budget is a total quantity of emissions that is allowed during an emissions budget period. Emissions budgets act as ‘stepping stones’ to keep us on track to meeting our long-term emissions reductions targets. Each emissions budget covers a period of 5 years (except for the first emissions budget which will cover the period 2022 to 2025).
Climate Change Response Act 2002(external link) — New Zealand Legislation
In June 2021, the Climate Change Commission released its final advice on the first 3 emissions budgets and on policy direction for the Government’s first Emissions Reduction Plan.
Ināia tonu nei: a low emissions future for Aotearoa(external link) — Climate Change Commission
Government has now set the first 3 emissions budgets and published an Emissions Reduction Plan.
The Emissions Reduction Plan sets out policies and strategies for meeting the first emissions budget period and sets a direction for emissions reductions in the second and third budget periods. It takes into account the Climate Change Commission’s recommendations.
The Emissions Reduction Plan includes actions relating to system settings for reducing emissions, including approaches for empowering Māori, ensuring an equitable transition and working with nature. It also includes plans for reducing emissions in key emitting sectors, including the energy and industry sectors.
Emissions budgets and the emissions reduction plan(external link) — Ministry for the Environment
What are the Energy and Industry sectors?
The range of activities included in the Energy and Industry chapter of the Emissions Reduction Plan are extremely diverse. Formally, these sectors cover emissions from 3 areas:
- Combustion of fuels such as coal and gas for electricity generation and industrial heat
- Fugitive emissions, for example from gas production and geothermal fields
- Industrial processes (such as production of cement, steel and aluminium).
This chapter of the Emissions Reduction Plan covers a wide range of activities from the manufacturing, construction and electricity sector through to emissions related to natural gas treatment plants, geothermal fields, and the production of steel, cement, aluminium and glass.
The Energy and Industry sectors play an important role in the New Zealand economy, but they also have a significant emissions profile. In 2019, emissions from the energy and industry sectors made up just over a quarter of New Zealand’s total gross greenhouse gas emissions. Reducing energy and industry emissions and building a secure, affordable and sustainable energy system that supports our wellbeing requires a combined effort from all New Zealanders. Businesses, communities and government all have an important role to play.