INDC costs and experiences in removing low-carbon technology barriers: New Zealand

Abstract

New Zealand's strategy for decarbonising its economy is premised upon a combination of domestic abatement, forestry removals, and the purchasing of carbon units on the international market. This chapter examines this strategy in terms of the Intended Nationally Determined Contributions (INDCs) signed as part of the COP 21 process and considers the role of low-carbon technologies (LCTs) in meeting these commitments. To do so, the chapter analyses the characteristics of New Zealand economy, the institutional and regulatory context for domestic abatement, and considers the barriers to the further uptake of these technologies in a range of sectors. The New Zealand Emission Trading Scheme (NZ ETS), as well as institutional responses to transport, distributed energy, and geothermal technologies, is all considered. The international dimensions of New Zealand's INDC's commitments arguably require harmonisation of regional carbon markets and an increased trade in environmental goods and services. The experience of New Zealand potentially holds significant lessons for other countries in the region and beyond.