Submission to the Ministry for the Environment on the second Emissions Reduction Plan (2026-30) discussion document

The Centre’s submission on New Zealand’s second Emission Reduction Plan covers chapter 4 of the discussion document: ‘How we fund and finance climate mitigation’ and is focused on scaling private investment in climate mitigation.

Key messages from the Centre:

Government interventions to increase investment in sustainable or decarbonisation activities should involve a combination of regulatory, financial and market-driven approaches. The Government’s role is to ensure:

• Clear, stable and coherent policy frameworks 

• Scale, urgency and crowding in private capital 

• Provide value for taxpayers

• Risk mitigation

• Market development and standards

• Settings that support efficient, vibrant markets

• International cooperation 

These interventions work best when they are part of a comprehensive strategy that aligns government policies with the broader goals of sustainable development and climate action.

The three main barriers to enabling more private investment in climate mitigation are:

1. Short-term focus

2. A lack of consistency and clear leadership

3. Lack of long-term industry outcomes and objectives to facilitate investment

The three main actions the Government can do to enable more private investment in climate mitigation for the next 18 months are:

1. Market development

2. Accelerate the national energy strategy work

3. Develop a coordinated approach to facilitate climate, nature and transition investment

Read our submission.