About our review on whether emissions from international shipping and aviation should be included in the 2050 target
Should Aotearoa New Zealand's 2050 emissions reduction target be amended to include emissions from international shipping and aviation – and if so, how?
By 31 December 2024, we will provide advice to the Government on whether emissions from international shipping and aviation should be included in Aotearoa New Zealand's 2050 emissions reduction target – and if so, how.
We have released a discussion document setting out our initial thinking. We will be seeking public feedback between 8 April and 31 May 2024. To learn more or make a submission, head to our consultation site.
This page provides background information about this work, including the global and domestic context, the scope of our review, and how it connects to other related pieces of advice.
Overview
Aotearoa New Zealand’s current emissions reduction target includes emissions from domestic shipping and aviation, but excludes emissions from international shipping and aviation.
Global action to address emissions from international shipping and aviation is through international agreements. However, the UK, EU, USA and others, are proactively including these emissions in their domestic emissions reduction targets and/or emissions trading schemes.
The Commission is developing advice for the Government on whether Aotearoa New Zealand should do this too. We have released a discussion document on this and we are seeking public feedback.
We’re only required to look at emissions from international aviation and shipping for this 2024 review. There are no future reviews on this topic specifically required by our legislation.
Global context
International shipping and aviation contribute to global emissions. More and more countries are recognising that global action is needed to address these emissions.
These international emissions are currently outside of Aotearoa New Zealand’s commitments under the Paris Agreement, but are covered by other international efforts led by the International Civil Aviation Organization and International Maritime Organization.
Some countries are also taking individual action. For example, the UK and EU have decided to include emissions from international shipping and aviation into their emissions reduction targets or emissions trading schemes by 2026.
Aotearoa New Zealand can choose to be part of this change.
Domestic context
Aotearoa New Zealand is much more dependent on shipping and aviation for exports, imports and tourism than many other countries.
Global consumers are becoming increasingly aware of emissions from international shipping and aviation, so there are potentially economic and reputational risks if these emissions are not addressed.
Aotearoa New Zealand’s international customers are increasingly looking at emissions across all parts of their business – including from their suppliers. For example:
- Since October 2023, goods imported into the EU are taxed according to the emissions used to make the product, and from January 2024 the emissions from international shipping are included in the EU Emissions Trading Scheme.
- Tesco requires suppliers to know their emissions profile and have a reduction plan in place.
- Fonterra has a target to reduce supply chain emissions due to pressure from overseas markets and big customers like Nestlé focusing on emissions from their suppliers.
Scale
International shipping and aviation emissions for Aotearoa depend on the measurement method chosen. To give an indication of scale, there is around 5Mt of additional emissions from shipping and aviation refuelling in Aotearoa that is not currently accounted for in our domestic emissions target.
The current approach to these emissions is through various international agreements:
- the International Civil Aviation Organization (ICAO) leads global efforts to address international aviation emissions, and
- the International Maritime Organization (IMO) leads global efforts to address international shipping emissions.
These emissions have not generally been included in Nationally Determined Contributions under the Paris Agreement, partly as it is challenging to assign emissions from these activities to specific countries.
However, some countries have chosen to address international emissions from aviation and shipping within their domestic regulation.
Under the Climate Change Response Act, Aotearoa New Zealand’s domestic emissions need to be reduced to certain levels (or beyond) by 2050, and then maintained for every year after that.
Aotearoa New Zealand's domestic 2050 target is a 'split-gas' target that has three components. Collectively, these three components are described as 'the 2050 target' in the Climate Change Response Act.
One of these is a 'net zero' component. This means that Aotearoa New Zealand must reduce its emissions of greenhouse gases (other than biogenic methane) to net zero by 2050 and beyond. The Government can decide how to do this using a combination of gross reductions (fewer greenhouse gas emissions) and removals (capturing carbon dioxide by natural or artificial means).
The other two components are focused on biogenic methane. These are gross targets rather than net targets, meaning efforts need to be focused on reducing the amount of biogenic methane added to the atmosphere.
- By 2030, we need to lower biogenic methane emissions by 10% from 2017 levels.
- By 2050, we need to lower biogenic methane by 24 to 47% from 2017 levels.
Our current review
We are reviewing whether emissions from international aviation and shipping should be included in Aotearoa New Zealand’s emissions reduction target – and if so, how.
It’s possible that we will receive different evidence that points in different directions. Our advice will include judgements on how to balance the evidence, and the impacts, related to the factors we are legally required to consider.
Timeline
Analysis – We are currently doing our analysis, following a call for evidence that closed in July 2023.
Consultation – We have released a We have released a discussion document presenting our initial analysis, and we are seeking public feedback between 8 April and 31 May 2024.
Final advice – The final advice will be delivered to the Minister for Climate Change and published before 31 December 2024.
Part of a package
This review is one of three related pieces of advice we are currently developing on Aotearoa New Zealand's emissions reduction target and emissions budgets. They are all due to be delivered by 31 December 2024.
The other two pieces of advice are:
How these three pieces of work are connected
Emissions budgets set the pathway for Aotearoa New Zealand to get to the emissions reduction target – so if the target (the destination) changes, this will affect the future advice we give on emissions budgets. It won’t affect our upcoming advice on the fourth emissions budget as that is in relation to the current target.
If we recommend that emissions from international shipping and aviation are included in the emissions reduction target, this may affect our recommendation of whether that target should be changed, and will affect our future advice on emissions budgets. It won’t affect our upcoming advice on the fourth emissions budget as that is in relation to the current target.
If we recommend a change to the emissions reduction target, it will affect our future advice on emissions budgets. It won’t affect our upcoming advice on the fourth emissions budget as that is in relation to the current target.
Our related mahi
Related information
- FAQ: The 2050 emissions reduction target
- FAQ: Aotearoa New Zealand's system for reducing domestic emissions
- News: Call for evidence has closed: Emissions reduction targets and emissions budgets (31 July 2023)
- News: Call for evidence on Aotearoa New Zealand’s emissions reduction targets and emissions budgets, 31 March – 31 July (31 March 2023)