Economic Impact of New Zealand’s Second Emission Reduction Plan

Eilya Torshizian

The Emissions Reduction Plan 2 (ERP2) delineates Aotearoa New Zealand’s strategy to attain its emissions reduction objectives for the 2026-2030 period, alongside setting a path towards achieving long-term emissions reduction objectives. ERP2 aims to reduce annual average emissions from 72.5 MtCO2e to 61 MtCO2e. The Ministry for the Environment (MfE) engaged Principal Economics Limited, the Centre of Policy Studies, and Infometrics Limited to evaluate the comprehensive impact of the proposed policies. This includes:

  • Assessing the comprehensive economic repercussions of emissions mitigation policy packages within ERP2.

  • Estimating and understanding of secondary or indirect consequences.

  • Carrying out distributional analysis of these ramifications.

 

The critical policies investigated in our report include:

  • Increasing renewable energy through Electrify NZ

  • Targeting 10,000 public EV chargers

  • Lowering agricultural emissions

  • Investing in resource recovery

  • Improving public transport

  • Investigating carbon capture, utilisation and storage.

Cite this article

Torshizian E, Adams P, Stroombergen A. 2024. Economic Impact of New Zealand’s Second Emissions Reduction Plan. Report to Ministry for the Environment by Principal Economics Limited in collaboration with the Centre for Policy Studies and Infometrics Limited.