The Government’s second emission budget: Economic, environmental and social impacts

Our report provides advice on the Government’s final decision about the second emission budget. In addition to a wide range of policies considered in our earlier (May) report, the current report further investigates the impact of:

Our high-level results suggest that:

We sensitivity tested the results for seven different Nationally Determined Contribution (NDC) scenarios.

Our extensive modelling of the government policies provides a comprehensive database for various policy and investment assessments as well as the ESG planning. For further information refer to our latest article here.

Economic Impact of New Zealand’s Second Emission Reduction Plan

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:

 

The critical policies investigated in our report include:

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.