New Zealand’s Climate Change Minister Simon Watts is going to the global climate summit in Baku, Azerbaijan next week, where he will be co-leading talks on international carbon trading.

But the government has been unable to commit to using the trading mechanism he is leading high-level discussions about, and critics say he is also vulnerable over New Zealand’s backsliding on fossil fuels.

New Zealand has consistently pushed for two things in international climate diplomacy — one is ending government subsidies for fossil fuels globally, and the other is allowing carbon trading across international borders, so one country can pay for, say, switching off a coal plant in another country.

Nailing down the rules for making sure these carbon savings are real will be an area of focus for leaders at the COP29 summit, starting on 11 November.

But as Watts gets ready to attend the talks, critics say his government is vulnerable to accusations of hypocrisy on both fronts.

In a bid to bring back fossil fuel exploration, the government wants to lower financial security requirements on oil and gas companies requiring them to set aside money for the costs of decommissioning and cleaning up spills.

The coalition says the current requirements — brought in after taxpayers had to pay to deal with a defunct oil field — are so onerous they are stopping companies wanting to look for fossil fuels.

Billion dollar clean-ups
At a recent hearing, Parliament’s independent environment watchdog warned going too far at relaxing requirements could leave taxpayers footing bills of billions of dollars if a clean-up is needed.

The commission’s Geoff Simmons spoke on behalf of Commissioner Simon Upton.

“The commissioner was really clear in his submission that he wants to place on record that he doesn’t think it is appropriate for any government, present or future, to offer any subsidies, implicit or explicit, to underwrite the cost of exploration.”

The watchdog said that would tilt the playing field away from renewable energy in favour of fossil fuels.

Energy Minister Shane Jones says the government’s Bill doesn’t lower the liability for fixing damage or decommissioning oil and gas wells, which remain the responsibility of the fossil fuel company in perpetuity.

But climate activist Adam Currie says that only works if the company stays in business.

“The watering down of those key financial safeguards increases the risk of the taxpaper having to yet again pay to decommission a failed oil field.

“Simon Watts is about to go to COP and urge other countries to end fossil fuel subsidies while at home they are handing an open cheque to fossil fuels  .. This is a classic case of do as a say, not as I do.”

Getting flack not feared
Watts says he does not fear getting flack for the fossil-friendlier changes when he is in Baku, citing the government’s goal of doubling renewable energy.

“No I’m not worried about flak, New Zealand is transitioning away from fossil fuels . . . gas [from fossil fields] is going to need to be a means by which we need to transition.”

Nor does he see an issue with the fact he is jointly leading negotiations on a trading mechanism his own government seems unable to commit to using.

Watts is leading talks to nail down rules on international carbon trading with Singaporean Environment Minister Grace Fu. Her country has struck a deal to invest in carbon savings in Rwanda.

New Zealand also needs international help to meet its 2030 target, but the coalition government has not let officials pursue any deals. NZ First refuses to say if it would back this.

Watts says his leadership role is independent of domestic politics and ministers around the world are keen to nail down the rules, as is the Azerbaijan presidency.

“Our primary focus is to ensure that we get an outcome form those negotiators, our domestic considerations are not relevant.”

Paris target discussions
He said discussions on meeting New Zealand’s Paris target were still underway.

His next challenge at home is getting Cabinet agreement on how much to promise to cut emissions from 2030-2035, the second commitment period under the Paris Agreement.

Countries are being urged to hustle, with the United Nations saying current pledges have the planet on track for what it calls a “catastrophic” 2.5 to 2.9 degrees of heating.

A new pledge is due for 2030-2035 in February.

A major goal for host Azerbaijan is making progress on a deal for climate finance.

Currently OECD countries committed to pay $100 billion a year in finance to poorer countries to adapt to and prevent the impacts of climate change.

Not all the money has been paid as grants, with a large proportion given as loans.

Countries are looking to agree on a replacement for the finance mechanism when it runs out in 2025.

Watts said New Zealand would be among the nations arguing for the liability to pay to be shared more widely than the traditional list of OECD nations, bringing in other countries that can also afford to contribute.

Oil states such as UAE have already promised specific funding despite not being part of the original climate finance deal.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

The year is 2040 and Aotearoa New Zealand has reduced its greenhouse gas emissions consistent with the commitment to keep global heating below 1.5°C above pre-industrial temperatures.

The economy, society, local government, transport, housing and urban design, energy, land use, food production and water systems have all changed significantly. Fossil fuels have been mostly phased out internationally and import taxes are imposed on high emissions goods.

New Zealand is now a world leader in natural infrastructure, clean hydrogen energy, engineered wood and high quality low emissions food. Despite ongoing challenges, with a prosperous economy, most people think the transition was worth it.

Cities are more pleasant places to live, air and water are cleaner, nature is more abundant.

Following the emissions budgets stipulated by the Zero Carbon Act in late 2021, emissions are now properly priced into all economic decisions. The Emissions Trading Scheme has been reinforced and the price of emitting carbon has stabilised at $300 per tonne, after hitting $75 in 2022 and $200 by 2030.

In 2026, New Zealand signed the International Treaty to Phase out Fossil Fuels, which prohibits fossil fuel extraction, phases out use and requires international cooperation on renewable energy.

Carbon import taxes mean many high emissions commercial activities are no longer economically viable. Trade unions have played a major role in the industrial strategy underpinning the transition to a lower emissions economy.

Māori economy bigger than any other sector
The Māori economy is bigger than any other sector and has benefited from wider international recognition of the long term value of climate and biodiversity work.

New Zealand’s economy is based on productive activity that stays within planetary boundaries – including emissions and pollution of land and water – while respecting social requirements, such as a decent standard of living for all.

Building on their successful response to the covid pandemic, marae-based organisations are prominent as centres of excellence for climate and economic strategy, health and social services, managed retreat from coastal areas and natural infrastructure development.

Public financing was radically rebalanced in the 2020s, delivering more for local government and a greater partnership between councils, government and Māori organisations. This has enabled far better delivery of local services and much more meaningful connections within communities.

Councils and council organisations laid the groundwork for the climate transition, helping address the unequal impacts of climate change on different groups. Councils and mana whenua collectively administer substantial funds for regional development.

Fast, frequent rail

The government’s 2022 Climate Budget provided the massive injection of funds required to redesign our cities, which are now organised around mass transit, safe and segregated routes for cycling and vibrant pedestrian areas. People can access fast, frequent light rail and dedicated busways with low cost fares. Less road space is required for driving, which is more accessible now for those who need it, including disabled people and service vehicles.

People travel between cities primarily via electric rail, managed by a new national passenger rail agency InterCity, which acquired the InterCity regional bus operator in 2023. Through major reforms in 2024, KiwiRail became a dedicated rail freight operator. A new government agency, OnTrack, oversees maintenance and renewal of tracks and rail infrastructure.

Passenger rail services run across the North Island main trunk line on improved electrified tracks at up to 160kph. South Island rail uses hydrogen trains fuelled by locally produced green hydrogen.

Most of the work to upgrade transport, housing and energy infrastructure has been done by a new Ministry of Green Works set up in 2025. This Ministry partners with local hapū and iwi, as well as councils through regional hubs. It is backed by the government’s expanded Green Investment Finance company.

Anger over housing for all
Anger at the divide between property owners and renters culminated in a general rent strike in 2024. The government responded with new financial rules ending the treatment of housing as an asset class. Kāinga Ora, Māori organisations and councils have undertaken a massive public housing construction effort.

Most new housing is now public infrastructure rather than private homes built to store individual wealth. Public ownership has expanded, in particular for entities that provide core services such as transport, energy and water.

In 2024, the government worked with councils to focus plans on quality universal design housing. Since the new building code was adopted in 2025, all new homes have high standards for energy efficiency and accessibility. Higher density apartments line public transport routes in the main centres, with terraced homes in smaller towns. Structural timber has replaced concrete and steel in many construction projects.

Changes to housing, transport and urban design have supported improvements in health, well-being and physical activity. Health improved dramatically after universal basic services were introduced in 2024 to cover free visits to the doctor and dentist as well as free childcare and elderly care.

Energy goes green
Electricity generation has doubled, with a mix of wind, solar and geothermal. Many more energy storage facilities exist, including pumped hydroelectricity. Distributed energy is commonplace. Many councils have helped their communities set up local solar schemes and dozens of towns are completely independent of the national grid.

Green hydrogen is produced at the converted aluminium smelter at Tiwai Point using hydroelectricity. This is used in heavy industry and transport and exported from Southport.

In 2027, after New Zealand blew its first carbon budget, the government replaced MBIE with a new Ministry for Economic Transition. The ministry oversaw the transition to green jobs via a universal job guarantee scheme.

It also supported a dramatic reduction in energy use in all parts of society and the economy. This effort had a greater impact on emissions reduction than the replacement of energy and fuel with renewable sources.

The land heals
In 2025, the government established a Natural Infrastructure Commission. The term “natural infrastructure” emerged in the 2020s as a term to include native forests, wetlands, coastal environments and other ecosystems that store and clean water, protect against drought, flooding and storms, boost biodiversity and absorb carbon.

The commission has supported massive land restoration for carbon sequestration and biodiversity purposes, with an annual budget of NZ$5 billion from emissions revenue. Among other uses, the fund compensates land owners for land use changes that reduce emissions and build up resilience.

Under the new Constitution of Aotearoa adopted in 2040, ownership of the Conservation Estate transferred from Crown ownership to its own status of legal personhood.

International carbon taxes have transformed agriculture. Dairy herds have reduced in size and New Zealand is known for organic, low emissions food and fibre. High quality meat and dairy products, as well as plant-based protein foods, supply international markets.

Seaweed and aquaculture operations have flourished. Along with regenerative agriculture, this transition has reduced pollution and emissions. With native ecosystems regenerated, tōtara and harakeke can now be sustainably harvested for timber and fibre.

In urban and industrial settings water use has dramatically reduced. Every business, home and building stores its own water. Water use is measured and charges are levied for excess water use beyond the needs of the household. No water is ever wasted.

A better place
The country feels steadier than 20 years ago. There is hope for the future in a world that was full of uncertainty after the pandemic stricken early 2020s.

Many government agencies and councils are now seen as useful and relevant, having been equipped with the money to provide housing, social services, environmental restoration and support for economic and land use change.

Moving away from high emissions exports was more successful than anyone expected, but it took strict rules to make it happen. Some in the business sector opposed more government direction and regulation, but it’s widely accepted that relying on market forces would not have delivered a successful transition.

That approach had driven the country to the brink of failure on climate, biodiversity and social cohesion. Having been leaders in milk powder and tourism, the country now leads on natural infrastructure and the future of food, timber and energy.

In 2040, Aotearoa is a better place to be.

Dr Thomas Nash is social entrepreneur in residence, Massey University. This article is republished from The Conversation under a Creative Commons licence. Read the original article.

Article by AsiaPacificReport.nz

After a series of tense huddles, more than 24 hours into overtime, the gavel went down on a climate deal in Glasgow, Scotland, last night.

The Glasgow Climate Pact refers to coal for the first time in the UN process. It asks countries to come back with stronger climate plans in 2022.

And it finalises the most contentious elements of the Paris Agreement rulebook, six years after the landmark deal was done.

What it doesn’t do is meet calls for climate reparations, to the dismay of developing countries, especially in the Pacific.

A proposal for a finance facility to help victims of the climate crisis was quashed by the US and other rich nations, as was a call to earmark a share of carbon trading revenues to fund adaptation.

Addressing the plenary before the text was adopted, US Climate Envoy John Kerry said: “There is some discomfort. Well, if it’s a good negotiation, all the parties are uncomfortable. This has been a good negotiation.”

For China, India and big emerging economies, the compromise was accepting language around 1.5C, coal and fossil fuel subsidies despite concerns that such restrictions could inhibit their development — and a grievance against developed countries taking up most of the carbon budget.

India forces concession
India’s Environment Minister Bhupender Yadav forced a concession at the last minute, getting a reference to the “phase-out” of coal power changed to “phase-down”.

Tina Stege, of the Marshall Islands, told the plenary of her “profound disappointment” about the change.

“We accept this change with the greatest reluctance. We do so only because they are critical elements in this package that people in my country need as a lifeline for their future,” she said.

COP26 president Alok Sharma said: “I apologise for the way this has unfolded and I am deeply sorry.”

Pausing to fight back tears, he continued, to applause from the crowd, “I think it is vital that we protect this package” before, hearing no objections, he banged down the gavel.

Vulnerable countries also expressed dismay at the incremental progress on scaling up funding to respond to the impacts of climate change. They had to make do with a body to provide technical assistance and a “dialogue” on loss and damage.

Before the plenary started on Saturday afternoon Kerry and veteran US climate lawyer Sue Biniaz roamed the meeting hall. Their longest and most animated discussions were in a huddle with Ahmadou Sebory Toure, the lead negotiator for the G77+China group of developing countries.

‘Betrayal of people, planet’: World reacts to COP26 climate pact https://t.co/WRPMkN8gbp

— Al Jazeera English (@AJEnglish) November 14, 2021

Emerging empty handed
Yet Toure appeared to emerge empty handed. A source in the G77 said the African group had threatened to reject the package, but small islands talked them down.

Speaking in the meeting, while Biniaz pored over texts, Gabon’s Environment Minister Lee White said one of Africa’s red lines had “been rubbed out with no compromise”.

“The [African Group] is quite unhappy,” the source said. “Aosis [group of small island states] managed to convince the rest of the blocs to revisit the issue in Egypt. For now, they believe this is the best deal we can have out of COP.”

After the meeting, Kerry strode over to Toure and they exchanged a fistbump before walking off talking with Kerry’s arm around Toure’s shoulder.

The UK presidency’s stated aim for the conference was “to keep 1.5C alive”, referring to the most ambitious global warming limit in the Paris Agreement.

Announcements last week including India aiming for net zero by 2070 and a widespread agreement to reduce methane emissions led the traditionally cautious International Energy Agency to say that global warming could be held to 1.8C.

Climate Tracker caution
Others urged caution. Climate Action Tracker projected current policies put the world on a path to 2.7C warming and strengthened emissions targets for this decade could bend the curve to 2.4C.

More optimistic assessments rely on long term — and therefore uncertain — targets.

The carbon trading rules agreed in Glasgow, while stricter than some parties wanted, risk diluting ambition, critics warned.

“We have much to do to stop companies and countries gaming the system,” said Rachel Kyte, co-chair of an initiative to boost the integrity of voluntary carbon markets. “We have no room or time for markets like buckets of water, with 100 tiny holes.”

Article by AsiaPacificReport.nz