Climate Change Response (2050 Target and Other Matters) Amendment Bill
Climate Change Response (2050 Target and Other Matters) Amendment Bill
Climate Change Response (2050 Target and Other Matters) Amendment Bill
Climate Change Response (2050 Target and Other Matters) Amendment Bill
Government Bill
229—1
Explanatory note
General policy statement
The Climate Change Response (2050 Target and other Matters) Amendment Bill (the Bill) amends several components of the Climate Change Response Act 2002 (the Act), including the biogenic methane component of the 2050 emissions reduction target (the 2050 target).
The Bill comes as a result of—
the Methane Review Panel’s review of the biogenic methane target and science (the Methane Science and Target Review), which provided an evidence-based report on what a methane target (or range) consistent with the principle of no additional warming would look like for New Zealand, from a 2017 base year; and
the Climate Change Commission’s (the Commission) legislatively required review of the 2050 target (including the methane target).
The Bill amends the biogenic methane component of the 2050 target (the methane target), and several other sections of the Act.
The Bill proposes the following key changes:
amending the 2050 methane target to a 14% to 24% reduction from 2017 levels:
legislating an additional review of the methane target in 2040, which must assess the target’s relevance and recommend a target for biogenic methane emissions in 2050:
requiring that the implications for food production be considered by the Commission and the Minister of Climate Change (the Minister) as a matter relevant to advising on, and setting, emissions budgets:
extending the date in the Act by which the fourth emissions budget (for the period 2036 to 2040) must be set by 24 months, to 31 December 2027 as well as other relevant transitional measures:
removing the requirement that New Zealand Emissions Trading Scheme (NZ ETS) unit settings and price control regulations must accord with New Zealand’s nationally determined contributions.
Methane target
The Bill proposes to amend the methane target, providing farmers and exporters with a clear pathway to reduce emissions while maintaining productivity. The change will replace the 2050 biogenic methane target range of a 24% to 47% reduction from 2017 levels with a 14% to 24% reduction from 2017 levels. Other components of the 2050 target will remain in place.
The Methane Science and Target Review found that a 14% to 24% reduction in biogenic methane emissions is consistent with stabilising the warming contribution of New Zealand’s biogenic methane emissions at 2017 levels in 2050 in low- to mid-range global emissions scenarios (that is, between 1.5°C and 2.7°C). The mid-range scenario was considered most aligned with the world’s current trajectory of emissions reductions.
Ministers’ decisions about the proposed target were informed by the findings of the Methane Science and Target Review, the Commission’s advice, and advice from officials. The advice considered the contribution of the target to global efforts to limit warming to 1.5°C, alignment with the Government’s economic agenda, and feasibility of implementation. The proposed target strikes a balance between those objectives and maintains an appropriate contribution to international climate change commitments.
Under the Paris Agreement, New Zealand’s international climate change targets are called Nationally Determined Contributions (NDCs). The domestic 2050 target is distinct from but supports achieving the NDCs. To date, New Zealand has set NDC1 for the period 2021-2030, and NDC2 for the period 2031–2035. Both remain unchanged.
Legislating review of methane target in 2040
The Bill introduces an additional review of the methane target in 2040. This review must assess whether the methane target is relevant and recommend a target for the reduction of biogenic methane emissions below 2017 levels. The review must consider the following:
the latest science on the warming impact of biogenic methane emissions and what is required to achieve no additional warming from New Zealand’s biogenic methane emissions:
New Zealand’s progress in reducing its biogenic methane emissions:
New Zealand’s trading partners’ progress in reducing their biogenic methane emissions:
the progress made and actions taken internationally to reduce biogenic methane emissions in order to meet emissions reduction targets under international treaties and agreements, such as the Paris Agreement:
whether the recommended target for the reduction of biogenic methane emissions should be a single percentage target:
any other matters specified by the responsible Ministers.
The Bill proposes a milestone year of 2040 for the review. This is halfway between the 2 components of the methane target, and should provide time to make changes if necessary. Any future change to the target would need to be agreed to, and implemented by, Parliament through an amendment to the Act.
Legislating consideration of food production
The Bill proposes to require implications, or potential implications, for food production to be considered by the Commission and the Minister as a matter relevant to advising on, and determining, emissions budgets.
The Bill proposes this change to give greater prominence to consideration of implications, or potential implications, for food production in decision-making about emissions budgets. This would sit alongside existing considerations under the Act, such as the implications, or potential implications, of land-use change for communities. In that context, food production encompasses domestic food production for both consumption and export.
Setting of fourth emissions budget and revisions to existing emissions budgets deferred
The Bill proposes to extend the deadline to set the fourth emissions budget. Emissions budgets act as stepping stones towards the 2050 target by setting legally binding limits on emissions for 5-year budget periods. The budget levels are set in response to advice from the Commission, as required under the Act.
The latest advice the Commission provided to the Government on setting the fourth emissions budget and revising existing budgets was prepared by reference to the 2050 methane target as at December 2024. Therefore, the Bill proposes to extend the date in the Act by which the fourth emissions budget (for the period 2036 to 2040) must be set by 24 months from 31 December 2025 to 31 December 2027 and to require the newly updated target to be considered by the Commission in updated advice.
Changes to accordance requirements for NZ ETS settings
The Bill proposes to remove the requirement for NZ ETS settings to accord with our NDCs under the Paris Agreement to support the proper functioning of the NZ ETS and because it is more appropriate that the test for the NZ ETS, which is a domestic policy instrument, be focused on alignment with domestic budgets and targets.
The Bill proposes this change as the NDC accordance requirement risks undermining the proper functioning of the NZ ETS. Specifically, this change will reduce the risk of negative impacts that could occur if a future NZ ETS settings decision could not accord with an NDC because of uncertainty in securing sufficient offshore mitigation. Additionally, the requirement is disconnected from the design and capabilities of the NZ ETS and the nature of nationally determined contributions under the Paris Agreement, because the NZ ETS is purely a domestic instrument and currently has no ability to account for, or contribute to, the offshore mitigation component of an NDC.
Departmental disclosure statement
The Ministry for the Environment and the Ministry for Primary Industries are required to prepare a disclosure statement to assist with the scrutiny of this Bill. The disclosure statement provides access to information about the policy development of the Bill and identifies any significant or unusual legislative features of the Bill.
A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=bill&subtype=government&year=2025&no=229
Regulatory impact statement
The Ministry for the Environment and the Ministry for Primary Industries produced regulatory impact statements in August and September 2025 to help inform the main policy decisions taken by the Government relating to the contents of this Bill.
A copy of the regulatory impact statements can be found at—
Clause by clause analysis
Clause 1 is the Title clause.
Clause 2 is the commencement clause. The Bill comes into force on the day after Royal assent.
Clause 3 provides that the Bill amends the Climate Change Response Act 2002.
Part 12050 target for biogenic methane emissions reduction
Clause 4 amends section 5Q to change the 2050 target for biogenic methane emissions reduction from 24% to 47% to 14% to 24% of 2017 emissions.
Clause 5 inserts new section 5QA. New section 5QA requires the Minister of Climate Change and the Minister of Agriculture to initiate a review of the biogenic methane component of the 2050 target set out in section 5Q(1)(b)(ii). A report of the review must be provided to Ministers by the end of 2040.
Part 2Other amendments
Clause 6 amends section 5X to change the date by which the Minister must set an emissions budget for the period 2036 to 2040 from 31 December 2025 to 31 December 2027.
Clause 7 amends section 5ZC by inserting a further matter that the Commission and the Minister must have regard to in relation to preparing advice on and determining emissions budgets. The further matter is the implications, or potential implications, of the emissions budget for domestic food production.
Clauses 8 and 9 amend sections 30GB and 30GC to remove references to contributions. These amendments remove the requirement for NZ ETS limits and price control settings to accord with nationally determined contributions under the Paris Agreement.
Clause 10 amends Schedule 1AA of the Act by inserting a new Part 6 that sets out transitional arrangements relating to the effect of the Bill. The new part is set out in the Schedule of the Bill.
Hon Simon Watts
Climate Change Response (2050 Target and Other Matters) Amendment Bill
Government Bill
229—1
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Climate Change Response (2050 Target and Other Matters) Amendment Act 2025.
2 Commencement
This Act comes into force on the day after Royal assent.
3 Principal Act
This Act amends the Climate Change Response Act 2002.
Part 1 2050 target for biogenic methane emissions reduction
4 Section 5Q amended (Target for 2050)
(1)
In section 5Q(1)(b)(ii), replace “24% to 47%”
with “14% to 24%”
.
(2)
In section 5Q(3), after “section”
, insert “and in section 5QA”
.
5 New section 5QA inserted (Government to review 2050 target for biogenic methane emissions reduction)
After section 5Q, insert:
5QA Government to review 2050 target for biogenic methane emissions reduction
(1)
The Minister and the Minister of Agriculture must initiate a review of the biogenic methane component of the 2050 target set out in section 5Q(1)(b)(ii).
(2)
The review must—
(a)
assess whether the biogenic methane component of the 2050 target is relevant; and
(b)
recommend a target for the reduction of biogenic methane emissions below 2017 emissions by the calendar year beginning on 1 January 2050.
(3)
In making its assessment and recommendation, the review must consider—
(a)
the latest science on the warming impact of biogenic methane emissions and what is required to achieve no additional global warming from New Zealand’s biogenic methane emissions; and
(b)
New Zealand’s progress in reducing its biogenic methane emissions; and
(c)
New Zealand’s trading partners’ progress in reducing their biogenic methane emissions; and
(d)
the progress made and actions taken internationally to reduce biogenic methane emissions in order to meet emissions reduction targets under international treaties and agreements, such as the Paris Agreement; and
(e)
whether the target recommended under subsection (2)(b) should be a single percentage target; and
(f)
any other matters specified by the Ministers when initiating the review.
(4)
A report on the review must be provided to the Ministers no later than 31 December 2040.
(5)
The Ministers must jointly consider the report on the review.
Part 2 Other amendments
6 Section 5X amended (Duty of Minister to set emissions budgets and ensure they are met)
In section 5X(3)(d), replace “2025”
with “2027”
.
7 Section 5ZC amended (Matters relevant to advising on, and setting, emissions budgets)
After section 5ZC(2)(b)(xi), insert:
(xii)
the implications, or potential implications, for domestic food production.
8 Section 30GB amended (Regulations about limits and price control settings for units)
In section 30GB(5)(b)(ii), delete “or contribution”
.
9 Section 30GC amended (Requirements for regulations about limits and price control settings for units)
(1)
In section 30GC(2)(a), delete “, and the nationally determined contribution for New Zealand under the Paris Agreement,”
.
(2)
In section 30GC(2)(a)(ii), delete “or contribution”
.
(3)
In section 30GC(3), delete “or contributions”
.
10 Schedule 1AA amended
In Schedule 1AA,—
(a)
insert the Part set out in the Schedule of this Act as the last Part; and
(b)
make all necessary consequential amendments.
Schedule New Part 6 inserted into Schedule 1AA
s 10
Part 6 Provisions relating to Climate Change Response (2050 Target and Other Matters) Amendment Act 2025
49 Interpretation
In this Part, amendment Act means the Climate Change Response (2050 Target and Other Matters) Amendment Act 2025.
Emissions budget 2036–2040 and revisions to notified emissions budgets
50 Commission to update advice to Minister on emissions budget and revisions to notified emissions budgets
(1)
The Commission must update the advice provided under section 5ZA(1) in respect of the following to reflect the amendment to the 2050 target made by section 4 of the amendment Act:
(a)
the emissions budget for the period 2036 to 2040:
(b)
revisions to emissions budgets notified under section 5ZD.
(2)
The Commission must—
(a)
prepare its updated advice in accordance with section 5ZA(1) and (2); and
(b)
despite section 5ZA(4)(b), provide its updated advice to the Minister on or before 31 March 2027.
(3)
The Commission need not comply with section 5ZA(3) before providing the updated advice to the Minister, but may consult on the proposed updated advice in accordance with section 5N.