Aotearoa New Zealand's rate of emissions reduction needs to more than double
Aotearoa New Zealand’s emissions are falling, but not fast enough to meet the country’s climate goals, according to He Pou a Rangi | Climate Change Commission’s annual emissions monitoring report. The report finds progress stalled in 2024, and the rate of emissions reduction will need to more than double over the next few years to get back on track.
Chief Executive of the Climate Change Commission, Jo Hendy says “This is a clear warning sign. Emissions are gradually falling but progress stalled in 2024, and current policy settings are not delivering at the pace needed. Government choices in the next 12 to 24 months will be critical to getting the country back on track.”
New Zealanders are already experiencing the impacts of a changing climate. Choices made now will affect how quickly the country cuts its own emissions, and how well households, businesses and communities are positioned to manage future shocks.
Read the 2026 Monitoring report on emissions reduction.
Accelerating decarbonisation can save money and manage future risks
For some common household and business uses, low-emissions choices are already cheaper over time. Electric vehicles, solar and heat pumps can reduce running costs, lower exposure to volatile fuel prices, and make homes and businesses more resilient to future shocks.
The Commission’s report highlights practical examples where available low-emissions technologies can reduce costs:
Research released earlier this year by the Sustainable Business Council and Climate Leaders Coalition separately estimated that earlier decarbonisation could contribute NZ$22 billion per year to GDP in less than a decade.
“But roll-out in Aotearoa New Zealand is lagging. This isn’t just a missed opportunity to reduce emissions, it means that households and businesses may be paying higher energy costs than they need to. Slow or delayed action also restricts the country’s future options,” says Hendy.
The Government has low-cost options to address barriers
People are missing out on savings and reducing their exposure to future energy risks because upfront costs and other barriers prevent households and businesses from switching away from fossil fuels.
The Government has low-cost options to address these barriers. These include targeted funding and financing mechanisms, stable investment signals for markets and consumers, and better information to support household and business decisions.
“The Government has already taken useful steps to reduce upfront cost barriers, including low-interest loans for EV charging and the gas transition loan scheme. The question now is how to build on them quickly enough to support the scale of change needed,” says Hendy.
“It’s not just about what the Government spends money on, but also the signals it gives. Clear and stable policy settings help households, businesses and investors make decisions with confidence. The goal should be to avoid getting locked into expensive long-run options. Infrastructure and other long-lived investments that support low-emissions choices are generally cheaper to get right early than to retrofit later,” says Hendy.
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