New Zealand government seeks ways to meet 2031-35 emissions targets

The New Zealand government has acknowledged that the Emissions Trading Scheme (ETS) alone will be insufficient to meet the country’s third emissions budget (EB3) for the 2031-35 period. While the government reports it is on track to meet the current emissions budget ending in 2030 with a buffer of approximately 3.6 million tonnes, the subsequent budget remains off-track by an estimated 8.7 million tonnes.

This admission follows warnings from the Climate Change Commission, which stated in July that New Zealand’s climate targets are at risk. The Commission noted that progress stalled in 2024 and expressed concerns regarding the fragility of the ETS and the decision to remove agricultural emission pricing. In response, the Ministry for Cities, Environment, Regions and Transport (MCERT) stated that while they acknowledge the Commission’s recommendations, new policies have been announced to improve delivery confidence and close the gap in future emissions budgets.