The framework has a focus on:

  • leadership at home and internationally
  • a productive, sustainable and climate-resilient economy
  • a just and inclusive society.

It supports New Zealand’s commitments under the Paris Agreement, including our target of reducing emissions by 30 per cent below 2005 gross emissions (or 11 per cent below 1990 emissions) for the period 2021-2030.  

It also recognises that we need to adapt to climate change impacts to address the changes we are already seeing and will continue to encounter (even with a global reduction in future emissions).

Guided by the framework, the Government’s programme of work and initiatives will help us reduce our emissions and adapt to the effects of climate change.

See Cabinet paper: Framework for climate change policy and key upcoming decisions

See Paris Agreement

See International targets.

Climate Change Response (Zero Carbon) Amendment Act and independent Climate Change Commission

New Zealand is on the path to a low emissions, climate resilient future.

  • The Government is committed to New Zealand becoming a world leader in climate change action
  • A new domestic emissions reduction target by 2050 was set into law with the Climate Change Response (Zero Carbon) Amendment Act in November 2019
  • An independent Climate Change Commission was established in mid-December 2019 to provide advice to Government on climate change mitigation and adaptation, and to monitor progress towards the new 2050 target emissions budgets and the implementation of a National Adaptation Plan.

Emissions budgets

The Climate Change Response Act 2002 requires the Climate Change Commission to provide recommendations to Government on emissions budgets. An emissions budget is a total quantity of emissions that is allowed during an emissions budget period. Emissions budgets will operate as ‘stepping stones’ that keep us on track to meeting our long-term emissions reductions targets. Each emissions budget covers a period of five years (except the first emissions budget which will cover the period 2022 – 2025).

On 1 February 2021, the Climate Change Commission released its draft advice on the first three emissions budgets and on policy direction for the Government’s first emissions reduction plan. The Commission consulted on its draft advice from 1 February – 14 March 2021 and released its final advice to Government on 9 June 2021.

Government will need to consider the Commission’s advice, and then set the first three emissions budgets by 31 December 2021 following the process set out in the Climate Change Response Act 2002.

Emissions reduction plan

The Government is working on the first Emissions Reduction Plan (ERP). The ERP will describe how we are going to meet emissions budgets and make progress towards meeting our 2050 target.

It will include:

  • policies and strategies for specific sectors (eg, transport, waste, building and construction, agriculture and forestry) 
  • a multi-sector strategy to meet emissions budgets and improve the ability of those sectors to adapt to the effects of climate change
  • ways to mitigate the impacts that reducing emissions will have on people and increasing removals will have on employees and employers, regions, iwi and Māori, and wider communities including the funding for any mitigation action
  • any other policies or strategies that the Minister for Climate Change considers necessary.

The ERP will continue the work the Government has done in response to the New Zealand Productivity Commission's Low emissions economy final report [New Zealand Productivity Commission website].

The report provided recommendations on how to drive the transition to a low emissions economy. See Government response to the New Zealand Productivity Commission Low Emissions Economy report.

However, making the transition is not just about what government does – we (individuals, businesses and organisations) all need to take action. Innovation and technology are also key to the transition to a low-emissions economy. 


New Zealand Emissions Trading Scheme

The New Zealand Emissions Trading Scheme (NZ ETS) is one of New Zealand’s key policy tools to:

  • reduce emissions 
  • meet legislated emission reduction targets and future emissions budgets.  

The reforms in mid-2020 improved the scheme to help New Zealand reach its emissions reduction targets. The auctioning of units, the phase-out of industrial allocation, an ETS-wide cap on emissions, and averaging accounting for forestry starting in 2023 were added into the scheme.

The current NZ ETS work programme is focusing on three areas:

  • market governance
  • industrial allocation reform
  • technical regulation updates.

Market governance

A framework is being developed which will regulate governance of the NZ ETS. The framework will ensure there are rules around advice, trading, and market conduct.

Industrial allocation review

The settings for free allocations to industry are out of date and need updating. Policy changes will ensure appropriate levels of support are given to industry and that allocation levels align with our emissions budgets and future climate change commitments.

Consultation on market governance and industrial allocation will occur over the second half of 2021.

Technical regulation updates

A suite of technical updates to regulations will ensure improved functioning of the NZ ETS.

Updates include:

  • unit limits and price control settings
  • SGG levy updates
  • update of emissions factors
  • improvement of the waste methodology
  • improvement of the electricity allocation factor methodology. 


Consultation on market governance and industrial allocation will occur in the second half of 2021. Consultation on the technical regulation updates occurred in April and May 2021.

Find out more about the New Zealand Emissions Trading Scheme

Reducing emissions from agriculture

Nitrous oxide and methane from agriculture make up almost half of New Zealand’s total greenhouse gas emissions.

The Government consulted with the public from 16 July to 13 August 2019 on its proposals to reduce agricultural emissions. Following this, the Government decided to put a price on agricultural emissions from 2025.

In the interim, the Government has developed a joint action plan with iwi/Māori and the agriculture sector, and entered into a formal sector agreement based on the Primary Sector Leader Group’s proposal, He Waka Eke Noa.

For more information see He Waka Eke Noa - Primary Sector Climate Action Partnership.

The Government continues to invest in research and development to identify options to reduce agricultural emissions.

Key initiatives the Government is supporting include the following.

Offsetting emissions through forestry

Forestry is a major part of the economy and plays an important role in helping us meet our emission reduction targets. It is one of New Zealand’s most important options to deliver low-cost carbon dioxide removals at scale.  

Forestry and the NZ ETS

Including post-1989 forestry in the NZ ETS gives landowners a financial benefit for the carbon their trees remove from the atmosphere. This helps encourage them to establish and manage forests in a way that increases carbon storage.  

One Billion Trees Fund

The Government’s One Billion Trees Fund [Te Uru Rākau Forestry New Zealand website] supports individuals and groups across New Zealand to plant trees and manage land sustainably.  The Government is introducing improvements to the NZ ETS to make it easier for foresters to participate in the scheme, and therefore increase the planting of new forests.  

Regulations are being developed to facilitate these improvements. This work is being led by the Ministry for Primary Industries. For more information see Emissions Trading Scheme improvements [Ministry for Primary Industries website].

International carbon markets: Supporting cooperation under the Paris Agreement

The Paris Agreement recognises that countries will cooperate for higher ambition on climate change and to promote sustainable development and environmental integrity. Article 6 of the Paris Agreement [United Nations Climate Change website] is about the many ways countries can cooperate to reduce emissions and increase climate change action. 

The NZ ETS is currently closed to international carbon markets. The International Carbon Markets Project was established in 2016 to explore options for New Zealand to supplement domestic climate change action and forestry with high-integrity international emission reduction units in the 2020s. 

For more information contact  

Adapting to the impacts of climate change

The climate is changing and past emissions have locked in further change. The action we take today to manage the risks from climate change will have a positive impact on New Zealanders’ future.  

The Government is developing a national adaptation plan to help us understand and respond to national climate change risks.

The First national climate change risk assessment for Aotearoa New Zealand gives a national picture of how New Zealand may be affected by climate-change related hazards. 

Published in August 2020 it: 

  • identifies the most significant risks and opportunities for New Zealand
  • highlights gaps in the information and data needed to properly assess and manage the risks and opportunities.

Adaptation and resource management

A key objective of RM reform is to better prepare for adapting to climate change and other natural hazards and mitigating greenhouse gas emissions contributing to climate change.

The Climate Adaptation Act is one of three new laws to be enacted as part of reforms to the resource management system.

The new Act would:

  • support Aotearoa New Zealand’s response to climate change
  • address complex legal and technical issues associated with managed retreat and funding and financing adaptation.

Read more about RM system reform 

Information and guidance

Recommendations of the Climate Change Adaptation Technical Working Group

The Climate Change Adaptation Technical Working Group was set up in 2016 to provide advice on how New Zealand can adapt to the impacts of climate change while sustainably growing the economy. The group consisted of technical experts from a range of sectors (for more information, see Climate change adaptation technical working group).

Read the group's Stocktake report on the expected impacts of climate change in New Zealand, as well as its second and final report released in May 2018, which provides recommendations for the actions New Zealand needs to take to build resilience to the effects of climate change while growing the economy sustainably.

Sustainable finance: Investing in climate change action

Sustainable finance refers to all investment that contributes to either climate mitigation or adaptation. The International Energy Agency estimates that global climate investments of US$75 trillion will be required by 2050 to have a 50 percent chance of limiting warming to 2°C. 

MfE commissioned a report to gain a better understanding of the landscape of climate finance in New Zealand.

Read Climate finance landscape for Aotearoa New Zealand: A preliminary survey 

Funding and financing a low emissions and climate-resilient future

Aotearoa New Zealand's just transition to a low-emissions and climate-resilient future will require a reorientation of public and private finance. How we fund and finance mitigation and adaptation needs over the short, medium and long term will be critical to achieving the scale of transformative action we urgently need.

The Treasury and the Ministry for the Environment have initiated a work programme exploring how the public finance system can best address the funding and financing needs of New Zealand's climate transition.

Accelerating funding of projects that can reduce emissions

New Zealand Green Investment Finance (NZGIF) is one of a number of initiatives in New Zealand investing in projects that reduce greenhouse gas emissions. The objective of the independently-operated NZGIF is to accelerate funding of projects that can reduce emissions. The Government has provided NZGIF with a $100m capital injection. As of August 2020, NZGIF has invested more than $15m between two projects.

New Zealand Green Investment Finance website

In late 2019, the Government consulted the public on its proposal to require firms in the financial market and listed companies to report on impacts of climate change for their business and investments in a consistent way. After considering public feedback the Government has confirmed its plan to introduce a mandatory climate-related financial disclosures regime.

If agreed by Parliament, publicly listed companies and large insurers, banks and investment managers would have to make annual disclosures of climate-related risks and opportunities that might impact their financial performance. 

The disclosures regime would help our financial system operate with better information about long-term risks and be more resilient. It supports the investment growth that is needed if we are to meet our climate change targets. 

Find out more on mandatory climate-related financial disclosures