The Climate Change Response Act 2002 is the legal framework that enables New Zealand to:
- develop clear and stable policies to limit global warming to 1.5° Celsius above pre-industrial levels; and allow New Zealand to prepare and adapt to the effects of climate change
- meet its international obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol.
To meet its obligations under the Kyoto Protocol, the act empowers the Minister of Finance to manage New Zealand’s holdings of units that represent New Zealand’s target allocation for greenhouse gas (GHG) emissions Gases emitted to the atmosphere which contribute to the greenhouse gas effect, in which more than the normal amount of atmospheric heat is retained in the atmosphere. These emissions include water vapour, carbon dioxide, nitrous oxide, methane, ozone, halocarbons and other chlorine and bromine-containing substances. under the protocol. It enables the minister to trade those units on the international market.
It establishes a registry to record holdings and transfers of units.
The act also establishes a national inventory agency to record and report information relating to GHG emissions in accordance with international requirements. Thereby, the act underpins the New Zealand’s Emissions Trading Scheme.
The Climate Change Response (Zero Carbon) Amendment Act 2019 expanded the purpose of the Climate Change Response Act 2002 to:
- recognise the outcomes of the Paris Agreement (i.e. a global effort under the Paris Agreement to limit the global average temperature increase to 1.5 degrees Celsius above pre-industrial levels The global average CO2 levels before the Industrial Revolution (1750).)
- allow New Zealand to prepare for, and adapt to the effects of climate change.
The amendments resulted in four key actions:
- Set up a new domestic greenhouse gas emissions reduction target.
- Establish a system of emissions budgets that contribute towards the long-term target set out in the Paris Agreement.
- Require the government to develop and implement policies for climate change adaptation Actions taken to help communities and ecosystems cope with changing climate condition (UNFCCC). and mitigation The action of reducing the severity, harm and seriousness of climate change through emissions reduction- which is the basis for the National Climate Change Risk Assessment.
- Establish a new Climate Change Commission to provide expert advice and monitoring to meet long term targets.