Much of the ‘2023 Draft advice to inform the strategic direction of the Government’s second emissions reduction plan’ aligns with the Centre’s Roadmap and 2023 recommendations to the Government. We commend the Commission on this work.
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.”
Recent developments in funding and financing the transition, such as the Sovereign Green Bonds framework, the Climate Emergency Response Fund, and the 2+2 Dialogue, are positive steps.
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.
Our submission calls for public-private collaboration to develop net zero funding and financing plans for key transition sectors including:
- Transport
- Energy and industry
- Agriculture
- Forestry
- Waste
Our submission also highlights the importance of strategic partnerships with the Centre to ensure the second Emissions Reduction Plan (ERP) benefits from the expertise that sits within Aotearoa New Zealand’s leading financial institutions.
Developing essential climate information architecture should be a priority.
We also emphasise the timely and necessary June 2023 review of the Emissions Trading Scheme (ETS) as a key lever for emissions reduction. CSF will submit separately on this matter.
