Low-emissions economy - Productivity Commission inquiry material 2017 - 2018

The inquiry#

This inquiry investigated the challenges of, and identified opportunities for, reducing New Zealand's emissions, in the context of an ambition to achieve net-zero emissions by 2050.

The Commission engaged with a large and diverse group interested in climate change and mitigation policy. The inquiry team completed over 120 engagement meetings (including overseas), 34 conferences/events and received 403 submissions. Modelling work was also undertaken by a consortium of Vivid Economics, Concept Consulting and Motu Economic and Public Policy Research of different transition pathways to a low-emissions economy, examining respective impacts and outcomes.

What needs to be done?#

The Government needs to prioritise the following actions to achieve the above shifts at the right scale and pace:

• Establish a comprehensive and durable climate change policy framework, including separate legislated long-term targets for short- and long-lived gases; a series of successive emissions budgets; and an independent Climate Change Commission;
• Reform the New Zealand Emissions Trading Scheme and apply some form of emissions pricing to methane from agriculture and waste;
• Devote significantly more resources to low-emissions innovation and technology to account for the long timeframes involved in bringing innovative ideas to fruition.

The Productivity Commission's final report also recommended a suite of other policy reforms to help drive the transition. These include introducing emissions standards for newly registered vehicles, a feebate scheme to accelerate the uptake of EVs, and mandatory climate-related financial disclosures.

Final report & Government response#

The Commission's final report was presented to the Government who announced a Climate Action Plan in August 2019. They released a response to the report, agreeing to 43 of the Commission's recommendations and agreement to do more work on 33 further recommendations.

New Zero Carbon Act#

On 7 November 2019, the Climate Change Response (Zero Carbon) Amendment Bill was passed. This Act commits New Zealand to zero carbon by 2050 or sooner, sets a legally binding pathway to this target, and requires the Government to make a plan.

Timeline#

• Terms of reference - 26 April 2017
  • Engagement and consultation starts
• Issues paper - 9 August 2017
  • Submissions closed - 2 October 2017
• Draft report
  • Submissions closed - 8 June 2018
• Final report - 31 August 2018
• Evaluation - November 2018
• Government response - 3 August 2019

Key documents#

Final report and Government response#

Government response to the New Zealand Productivity Commission Low Emissions Economy report | Ministry for the Environment

Terms of reference and issues paper#

Research#

Research (externally hosted)

1 May 2019 | Vivid Economics; Concept; Motu Economic and Public Policy Research | Modelling the transition to a lower net emissions New Zealand: Uncertainty analysis | Ministry for the Environment

Draft report#

Submissions#

Public submissions on issues paper - Low-emissions economy

Public submissions on draft report - Low-emissions economy

Evaluation#