New Ministry MCERT to Launch in 2026: Unifying Housing, Transport and Environment Reform

RMA Reform Minister Chris Bishop said MCERT will sit at the centre of New Zealand’s long-term development strategy, responding to intertwined challenges that demand coordinated solutions.

New Zealand’s Government has introduced landmark legislation to Parliament to establish the Ministry for Cities, Environment, Regions and Transport (MCERT), a major structural reform aimed at transforming how the country tackles its most pressing economic, infrastructure and environmental challenges.

The new ministry will bring together key portfolios currently spread across multiple agencies, creating what ministers describe as one of the most significant public-sector reorganisations in decades. The reform is designed to deliver more integrated decision-making across housing supply, transport investment, urban growth, regional development and environmental protection.

The legislation marks a critical step in the Government’s broader agenda to address housing affordability pressures, accelerate infrastructure delivery and strengthen climate adaptation planning nationwide.

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A Single Ministry to Drive National Growth and Resilience

RMA Reform Minister Chris Bishop said MCERT will sit at the centre of New Zealand’s long-term development strategy, responding to intertwined challenges that demand coordinated solutions.

“The new agency will be at the heart of tackling some of New Zealand’s greatest economic and environmental challenges, from housing affordability and our infrastructure deficit to climate adaptation,” Mr Bishop said.

The ministry will integrate:

• The Ministry for the Environment

• The Ministry of Housing and Urban Development

• The Ministry of Transport

• Local government functions currently held by the Department of Internal Affairs

This consolidation reflects a growing international trend toward “whole-of-system” governance, where housing, transport and environmental planning are treated as interconnected drivers of prosperity and sustainability rather than separate policy silos.

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Legislative Change Needed to Enable the Transition

The Government has introduced the Environment (Disestablishment of the Ministry for the Environment) Amendment Bill, which will formally pave the way for the Ministry for the Environment to merge into MCERT.

Mr Bishop noted that the Ministry for the Environment is the only agency involved in the new structure that was established through statute, meaning legislative change is essential before MCERT can legally exist.

“The Ministry for the Environment is the only agency forming MCERT that was established by statute… and we are moving swiftly to make that happen,” he said.

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Environment Oversight to Continue Without Disruption

Environment Minister Penny Simmonds said the amendment will ensure continuity of environmental governance while modernising how environmental responsibilities are delivered.

Under the new structure:

• MCERT will administer the Environment Act

• The chief executive of MCERT will fulfil the statutory role of Secretary for the Environment

• All environmental protections and responsibilities will remain embedded in government decision-making

“Environmental functions remain a core part of the new Ministry’s work,” Ms Simmonds said.

“Bringing related portfolios together in one department will provide integrated, practical advice that both protects our environment and lifts prosperity for communities across New Zealand.”

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Innovation in Government Structure: Linking Cities, Climate and Infrastructure

The creation of MCERT represents a unique innovation in New Zealand’s public administration by aligning urban development and environmental stewardship within the same institutional framework.

Policy experts have long argued that housing shortages, transport congestion and climate adaptation cannot be solved independently. For example:

• New Zealand faces ongoing housing supply constraints in major cities

• Infrastructure deficits are estimated in the tens of billions of dollars over coming decades

• Climate-driven flooding and coastal risks are increasing pressure on local councils and communities

By consolidating portfolios, MCERT is expected to strengthen long-term planning, reduce duplication, and accelerate coordinated investment decisions.

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Timeline for Establishment

The Government confirmed that MCERT will be:

• Formally established from 1 April 2026

• Fully operational from 1 July 2026

A chief executive for the new ministry is expected to be appointed in the coming months.

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A New Era of Integrated National Planning

The establishment of MCERT signals a shift toward a more joined-up approach to national development—one that recognises the direct links between housing affordability, transport networks, urban growth and environmental resilience.

Ministers say the new ministry will help ensure New Zealand can meet the demands of a growing population, modernise its infrastructure, and adapt to climate realities while safeguarding environmental standards.