The Climate Change Commission is clear in its advice that “a lack of clarity on the approach to achieve net zero long-lived gas emissions by 2050 and beyond is likely to create ongoing policy uncertainty and impact decision-making in the public and private sectors. …Ultimately, prolonged uncertainty is more likely to lead to a more disruptive transition with higher costs and more significant impacts. The question of how to meet the 2050 net zero target is therefore of core importance to the second emissions reduction plan.”
Much of the ‘2023 Draft advice to inform the strategic direction of the Government’s second emissions reduction plan’ (ERP) aligns with The Centre for Sustainable Finance: Toitū Tahua (CSF) guiding document, The Sustainable Finance Forum Roadmap. We commend the Commission on this work.
However, more work is needed to develop credible plans for funding and financing the transition. The Centre’s submission focuses on key ‘system enablers’ to accelerate capital flows.
Our recommendations are guided by the understanding that a low emissions economy is core to Aotearoa New Zealand’s economic value proposition, and that sustainable finance plays a crucial role in enabling the transition. We call on the Government to remove regulatory barriers, set rules and standards, incentivise and actively facilitate the flow of private capital and ensure that policy enables a strong sustainable finance market in Aotearoa New Zealand.
Key points of the submission:
- A call for public-private collaboration to develop net zero funding and financing plans for key transition sectors including: Transport, Energy and industry, Agriculture, Forestry, and Waste.
- Highlighting the importance of strategic partnerships with CSF to ensure the second ERP benefits from the expertise that sits within Aotearoa New Zealand’s leading financial institutions.
- Prioritising development of essential climate information architecture.
- That the June 2023 review of the Emissions Trading Scheme (ETS) is both timely and necessary as a key lever for emissions reduction. CSF will submit separately on this matter.
