Climate Change Response Act 2002

Climate Change Response (Zero Carbon) Amendment Act 2019

Climate Change Response (Emissions Trading Reform) Amendment Act 2020

Amended by the Emissions Trading Reform Act

Amended by the Climate Change Response (Zero Carbon) Amendment Act

Law passed

Last amendment

The Climate Change Response Act 2002 established an institutional and legal framework for New Zealand to ratify and meet its obligations and the Kyoto Protocol and the United Nations Framework Convention on Climate Change. To this end, the Act authorised the Minister of Finance to manage New Zealand’s holdings of units for GHG emissions under the Kyoto Protocol and to trade them on international carbon markets. Furthermore, the Act designated a national inventory agency. The Agency is charged with recording and reporting information relating to GHG emissions in accordance with New Zealand’s international requirements. The Act has been amended numerous times, including by the Climate Change Response (Zero Carbon) Amendment Act in November 2019. The Zero Carbon Amendment Act sets a target to reduce net carbon emissions to zero by 2050. It also sets targets for biogenic methane emissions (from agriculture and waste) - 10% by 2030 (compared with 2017 levels), and 24%-47% reduction by 2050 (compared with 2017 levels). 5 year rolling carbon budgets are set, and obligations set to monitor meeting of those budgets. By 2024, a review will be carried out with regards to inclusion of emissions from international shipping and aviation in the 2050 target. The amendment mandates carrying out a periodic national climate risk assessment, and sets obligations on government to follow every assessment with a national adaptation plan. The amendment establishes a Climate Change Commission which serves an an independent advisory board to government. The Commission's role is to provide independent, expert advice to the Government mitigation and adaptation, and to monitor and review the Government’s progress towards its emissions reduction and adaptation goals. The Zero Carbon amendment sets consulting obligations with Māori and iwi leadership bodies under the obligations of the Treaty of Waitangi on multiple aspects of the law. Other notable amendments: On June 22nd, 2020, the <a href="https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_92847/climate-change-response-emissions-trading-reform-amendment" target="_self">Emissions Trading Reform Amendment Act</a> was passed to amend the 2002 Act. This amendment reforms the existing trading scheme created by the 2008 Amendment to the Act. The Amendment aims at improving certainty for businesses, making the Emissions Trading Scheme more accessible, and improving its administration. It also allows for the phase down of industrial allocation from 2021 with greater reductions from 2030. The Climate Change Response (Unit Restriction) Amendment Act 2014 ensures that only domestic emission units within the NZ ETS can be surrendered by participants when deregistering post-1989 forest land from the NZ ETS. The intent is to remove the opportunity to arbitrage units by registering and deregistering the same piece of post-1989 forest land from the NZ ETS multiple times. The Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 maintains the costs that the NZ ETS places on the economy at current levels. Essentially, the 2012 amendments prolong the transitional measures introduced in 2009: non-forestry obligations remain at one emission unit for two tonnes of actual emissions, there is no phase-out of free allocations, and the unit price is capped at NZD 25 (USD 19.65). The most significant change however is that agriculture will not have to surrender obligations from 2015. The Climate Change Response Amendment Act 2011 made several changes to the administrative functions of the Climate Change Response Act 2002, such as the functions of the chief executive of the Environmental Protection Authority, the appointment of enforcement officers, and the obligation to maintain confidentiality. The Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 made several important changes aimed at modifying New Zealand's emissions trading scheme, including delaying the participation of the agriculture sector in the NZ ETS until 1 January 2015, and that additional allocations of emission certificates will be given to the agriculture sector on an intensity basis. They will be phased out at 1.3 percent rate starting from 2016. The Act also stated that additional allocations of emission certificates will be given to emissions-intensive, trade-exposed industries. The Climate Change Response (Emissions Trading Forestry Sector) Amendment Act 2009 made technical amendments to the forestry sector's participation in the NZ ETS, specifically, giving the Minister in charge the ability to withdraw or suspend draft allocation plans, and changing the timeframes for the surrender of units in relation to pre-1990 forest land activities. The Climate Change Response (Emissions Trading) Amendment Act 2008 amended the Climate Change Response Act 2002 to introduce a GHG emissions trading scheme in New Zealand (known as the NZ ETS). The Department of Inland Revenue specifies how the Climate Change Response Act amends the Income Tax Act 2004, the Income Tax Act 2007, and the Goods and Services Tax Act 1985 (GST Act) to cover the income tax consequences to the forestry sector and the GST consequences to all sectors of transactions in emissions units. The Climate Change Response Amendment Act 2006 made numerous small changes to the 2002 Climate Change Response Act such as identifying an expiry period for both temporary and long-term certified emission reduction units, allowing the Governor General to make regulations establishing forest sink covenants, and adding principles of cost recovery such as via levies or fees.

Climate Change Response (Zero Carbon) Amendment Act (amending the Climate Change Response Act 2002)

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

Terrestrial means "of the earth" and relates to the risks to ecological system that includes all living organisms and their interactions within land-based environments, such as forests, grasslands, and deserts.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Actions or measures to adapt terrestrial systems to climate change.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Energy derived from biological compounds that are renewable due to their short life cycle within the carbon dioxide cycle.

A drought is an extended period of unusually dry weather marked by a significant and sustained lack of precipitation, falling below a specific threshold over a large area for more than a month

Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

Financial actors and resources that are primarily directed towards climate change mitigation, adaptation and compensation.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

Activities that relate to the production of goods and services from forests.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Actions or measures to adapt freshwater systems to climate change.

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

Coastal zone and marine-related actions and measures to adapt and increase resilience to climate change

Dedicated pool of financial resources for climate-related projects.

This sector involves activities to move goods and people, alongside the storage of products.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

This sector involves the wholesale and retail selling of goods.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

People with different national or cultural traditions from the dominant population

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Heat extracted from the ground, usually in the form of hot water or steam and typically referred to as hydrothermal fluid.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

Slow onset events evolve gradually from incremental changes over many years or from increased frequency or intensity of recurring events. As defined in the Cancun Adaptation Framework (2010), slow onset events include risks and impacts from rising temperatures, desertification, biodiversity loss, land and forest degradation, glacial retreat, ocean acidification, sea level rise, and salinization.

Risks to the ecosystem health of the marine environment, including ocean warming, ocean acidification, and ocean deoxygenation, harming biodiversity, species health, ecosystem services, and coastal community livelihoods.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Compulsory, required payments to the government that are levied more-or-less in proportion to the services provided. Fees and charges range from entrance fees to national parks, charges on land-based sewage discharge.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

Zoning and spatial planning are both methods for guiding the distribution of people and activities in a space, and are regulatory restriction.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Extreme weather refers to events where a weather variable exceeds (or falls below) a threshold. Meaning it is significantly different from the average or usual weather pattern.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

Geohazards are adverse geological phenomenon's that are capable of causing widespread damage or loss to property, life and the environment, such as earthquakes, volcano eruptions and tsunamis. Climate change can increase the frequency and severity of some geohazards, such as landslides, and soil erosion.

Climate Change Response Act 2002

Target

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance