The Climate Change Response (Zero Carbon) Amendment Act, more commonly referred to as the ‘Zero Carbon Act’, outlines the government’s plans over the next 30 years to reduce all greenhouse gas emissions (except methane) to net zero by the year 2050.

It provides a framework to allow New Zealand to prepare for, and adapt to, the effects of climate change. The ambitious new targets mean that New Zealand can’t maintain CO2 emissions at current levels. Instead, we will need to make some massive cuts to our carbon usage over the next ten to 20 years.

The cost of carbon will increase significantly and, since the New Zealand economy is predominantly a carbon economy that is very dependent on fossil fuels, businesses will face exposure.

Ironically, considering the dramatic long-term implications the Act will have on how we do business in New Zealand, there are no immediate implications or obligations on business owners. 

However, considering the COVID-19 pandemic, the opportunity exists to seriously rethink our options as a nation; and the new emissions targets will need to be factored into any future decisions around strategy, infrastructure, systems and investments. 

Before the government starts issuing directives, businesses can choose to be proactive and take a critical look at how they run their businesses. The new Act will affect you and your business, and the changes will be significant, so it might pay to use this time now to refocus. 

There are decisions that can be made in a business, irrespective of beliefs and politics that can have positive impacts. Being environmentally friendly doesn't always have to cost financially. It could be good for the bottom line to consider how you do things. Yes, there will be costs involved, but the Zero Carbon Act will also create opportunities for innovation.

Feedback, comments and questions are always welcomed – please feel free to e-mail me on [email protected]

T: 03 443 0900

W: www.aspiringlaw.co.nz

John Mezger specialises in business, employment and immigration law at Aspiring Law.

Please remember, this information is designed as a general guide, and should not replace specific legal advice on a particular issue.