NZ–Australia climate and finance talks strengthen energy, net-zero and Pacific ties

Ministers agreed the 2+2 format has been highly effective, delivering deeper trans-Tasman cooperation on economic reform, climate policy, and energy transition.

Finance Minister Nicola Willis, Climate Change and Energy Minister Simon Watts, along with Australian Treasurer Dr Jim Chalmers and Climate Change and Energy Minister Chris Bowen, met in Auckland on 5 December 2025 for the third Australia–New Zealand Climate and Finance Ministers’ 2+2 Dialogue. The talks marked a significant strengthening of trans-Tasman collaboration on climate action, renewable energy, economic productivity, and Pacific regional support.

Ministers reaffirmed that accelerating the transition to low-emissions, renewable energy systems is essential not only for climate targets, but also for lowering power prices and easing cost-of-living pressures for households and businesses across both nations. They emphasised the vast economic opportunities emerging from the global demand for clean energy technologies, sustainable products, and net-zero aligned investment.

Both New Zealand and Australia have recently submitted updated Nationally Determined Contributions (NDCs) under the Paris Agreement—providing essential signals to investors and international partners about the scale of upcoming economic transformation.

Strengthening Trans-Tasman Energy Affordability and Security

Building on commitments made at the August 2025 Leaders’ Meeting, Ministers focused on shared challenges including energy security, regulatory alignment, infrastructure resilience, and rising climate-related economic pressures. Both governments agreed to advance cross-border cooperation in the following areas:

Upgrading Energy Efficiency Systems

• Joint co-investment of NZ$1 million (AU$0.9m) from New Zealand and AU$4.1 million (NZ$4.6m) from Australia to upgrade the Equipment Energy Efficiency (E3) Program registration system.

• Improvements aim to reduce compliance burdens, enable access to cheaper, cleaner household products, and support industry innovation.

Scaling Consumer Energy Technology

• Joint development of smart-function standards for EV chargers in line with recommendations from the Menezes report.

• Alignment of Vehicle-to-Grid (V2G) standards to support EVs in stabilising electricity networks.

• Direct engagement between solar and battery industry leaders and regulators across both countries to leverage lessons from Australia’s Cheaper Home Batteries program.

These measures will help boost EV adoption, improve household energy savings, reduce regulatory complexity, and create new opportunities for trans-Tasman clean-tech businesses.

Unlocking Economic Potential from the Net-Zero Transition

Ministers welcomed ongoing collaboration on Sustainable Aviation Fuel (SAF) development, including work led by Bioenergy Australia and its New Zealand partners to establish a regional SAF strategy. Scaling SAF production is seen as essential for strengthening fuel security, reducing aviation emissions, and supporting Pacific nations’ decarbonisation goals.

Australia’s AU$1.1 billion Cleaner Fuels Program was welcomed as an important advance in regional low-carbon fuels production. Both countries agreed to share policy learnings on technology development, investment attraction, and certification standards.

Ministers also acknowledged progress in sustainable finance, including:

• Continued alignment of classification systems under New Zealand’s expanded sustainable finance taxonomy, now covering energy and construction.

• Strong engagement between the Australian Sustainable Finance Institute and New Zealand’s Centre for Sustainable Finance.

• Commitment to comparable, interoperable international standards that give investors clarity and accelerate green investment across the Single Economic Market.

Significant progress was also noted on Guarantee of Origin (GO) schemes, with Australia launching its national certification system in November 2025. Both governments are working to ensure alignment across emerging frameworks to support trusted regional markets for green hydrogen, green metals, and low-carbon fuels.

Advancing Agricultural Emissions Reduction

Both countries reaffirmed that cutting agricultural emissions is essential for the long-term success of the farming sector. Ministers acknowledged:

• Australia’s AU$300 million Zero Net Emissions Agriculture Cooperative Research Centre

• New Zealand’s over NZ$400 million investment to accelerate on-farm emissions-reduction technologies

They committed to increased technical collaboration, particularly around methane-reducing technologies, soil-carbon measurement, and livestock management practices.

Boosting Economic Growth and Productivity Together

Ministers discussed close alignment between New Zealand’s Going for Growth reforms and Australia’s productivity agenda—both aimed at lowering business costs, easing regulatory burdens, and supporting innovation.

Key commitments included:

• Establishing a joint working group on insurance accessibility, addressing climate-driven risks and rising premiums.

• Exploring stronger alignment across payments systems, digital assets regulation, and non-financial risk management.

• Advancing work to align building codes, safety standards, and product safety settings, supporting easier trade and consistent consumer protections.

Deepening Partnership with the Pacific

Reaffirming commitments made by Pacific Islands Forum Leaders, Ministers highlighted the urgent threat climate change poses to Pacific livelihoods, infrastructure, and economies.

New Zealand welcomed Australia’s agreement with Türkiye over arrangements for COP31, which offers a unique opportunity to amplify Pacific voices on the global stage.

Both countries committed to:

• Co-hosting a technical assistance and training program for Pacific energy regulators in 2026

• Supporting renewable energy expansion across Pacific nations through regional mechanisms such as SPREP, SPC, and the Pacific Islands Forum

• Working together to promote resilience, sustainable growth, and energy transition efforts across the region

Evolving the 2+2 Dialogue

Ministers agreed the 2+2 format has been highly effective, delivering deeper trans-Tasman cooperation on economic reform, climate policy, and energy transition. Given the growing breadth of engagement, the dialogue will evolve into regular bilateral meetings between relevant Ministers, with joint meetings convened as required.