Sustainable Business and Finance: Climate Minister Simon Watts pushes tech-led emissions plan at COP

As a small, island, food-producing nation, we play a unique role in the global economy, and we must do everything we can to remain globally competitive.

As the Minister for Climate Change, I’m focused on climate action that grows New Zealand’s economy and supports emissions reductions. Because actions that are good for the economy and the climate will help make New Zealand stronger and more resilient in a changing world.

Nearly 70% of New Zealand’s export value is directed to economies with mandatory climate disclosures, whether they are in force or actively proposed; we have trade agreements that require our commitment to the Paris Agreement; and international consumers are also increasingly expecting low-emissions products. Showing the world we are serious about climate is critical to our economic success.

Transitioning to a lower emissions economy helps Kiwi businesses enter high-value international markets and underpins New Zealand’s export offerings from tourism to food production and consumer goods.

That’s why our Climate Strategy and our Going for Growth programme both set out our intention to increase clean energy, boost innovation, supercharge investment and modernise industry practices to support our economic growth and emissions reductions.

We are taking a technology-led approach to reducing emissions. The food and fibre sector is New Zealand’s largest export earner, and we have committed more than $400 million over the next four years to accelerate technology to reduce on-farm agricultural emissions.

We’re also seeing New Zealand businesses – in response to their customers – taking action on climate. From June this year, Fonterra is paying farmers more for milk produced on farms with emissions lower than the 2017/18 baseline. This is part of Fonterra’s own target, which it says is critical to help them remain competitive.

But like all countries, New Zealand is vulnerable to the effects of climate change and we are seeing the economic impacts via insurance premiums and post-event repairs. We face growing risks from floods, storms and other natural hazards, so we need our country and economy to be resilient and well-prepared.

Last month, I announced the National Adaptation Framework, which gives us an enduring system that prepares New Zealand for the impacts of climate change, supports economic growth, and keeps the overall costs to our society as low as possible. We are one of the first countries in the world to have such a framework.

We’re taking action across the whole system, to sharpen our focus and make sure we are building in resilience as part of strengthening and growing our economy.

The framework outlines actions designed to ensure New Zealand is prepared for the effects of climate change, such as investing in the resilience and economic prosperity of the regions and through the $1.2 billion Regional Infrastructure Fund, and requiring local government to have adaptation plans in the highest priority areas.

This will not only help New Zealanders be better prepared for natural hazards, but also give investors and business confidence that, as a country, we are preparing and managing our risk.

At COP I look forward to advancing our interests and unlocking our economic potential in this changing world.