New Zealand announces new climate response fund

The New Zealand government on Monday announced it would spend at least NZ$2.9 billion ($1.82 billion) on further reducing emissions over the next four years as part of the country's commitment to cut emissions to net zero by 2050. The government said the new Climate Emergency Response Fund will intially receive NZ$4.5 billion from Emmissions Trading Scheme revenue, with NZ$2.9 billion to be allocated in this week's budget.

The New Zealand government on Monday announced it would spend at least NZ$2.9 billion ($1.82 billion) on further reducing emissions over the next four years as part of the country's commitment to cut emissions to net zero by 2050.

The government said the new Climate Emergency Response Fund will intially receive NZ$4.5 billion from Emmissions Trading Scheme revenue, with NZ$2.9 billion to be allocated in this week's budget. The government said NZ$865 million of the NZ$4.5 billion had previously been allocated to international climate finance and a decarbonising fund.

The fund will be topped up with future revenue from the Emissions Trading Scheme. The new Emissions Reduction Plan "delivers the greatest opportunity we've had in decades to address climate change but also move to a high wage, low emmissions economy that provides greater economic security by creating jobs," New Zealand Prime Minster Jacinda Ardern said in a statement.

The government will also introduce an emissions pricing mechanism for its key agricultural sector by January 2025. ($1 = 1.5921 New Zealand dollars)