New Zealand Passes Law Resetting Biogenic Methane Target to 2050

The legislation updates the biogenic methane component of New Zealand’s 2050 climate target, setting a new reduction range of 14–24 percent below 2017 levels by 2050.

The New Zealand Government has passed legislation resetting the country’s biogenic methane target, aiming to provide greater certainty for the agriculture sector while maintaining the nation’s climate commitments. The Climate Change Response (2050 Target and Other Matters) Amendment Bill passed its third reading today, marking a significant update to New Zealand’s climate framework.

Agriculture Minister Todd McClay and Climate Change Minister Simon Watts said the changes introduce a more practical, science-based approach to reducing agricultural emissions, particularly methane, while safeguarding food production, exports, and rural livelihoods.

The legislation updates the biogenic methane component of New Zealand’s 2050 climate target, setting a new reduction range of 14–24 percent below 2017 levels by 2050. The Government says this approach balances environmental responsibility with economic realism, especially for farmers who play a central role in the country’s economy and export performance.

Mr McClay said the new target provides farmers and exporters with clarity and a clear pathway to emissions reduction without undermining productivity or international competitiveness. He stressed that agriculture will continue to make a fair contribution to meeting both domestic and international climate commitments.

Mr Watts said methane targets must be workable in practice, warning that policies which force farm closures or shift production overseas to less efficient systems would undermine global climate outcomes. He emphasised that the Government’s strategy focuses on partnership with farmers and the deployment of new technologies rather than punitive measures.

To support delivery of the target, the Government is investing more than $400 million alongside industry to accelerate the development and rollout of methane-reduction technologies. The first tools are expected to be available on farms by 2026, with up to 11 different methane-cutting solutions anticipated by 2030. These include feed additives, vaccines, and breeding technologies designed to reduce emissions while maintaining farm output.

The amendments also introduce several structural changes to climate governance. A formal review of the biogenic methane target will be legislated for 2040 to ensure it remains aligned with the latest science and comparable efforts by key trading partners. When setting emissions budgets, decision-makers will now be required to consider the need to protect food production.

The Bill clarifies the role of the Emissions Trading Scheme (ETS) by removing the requirement for ETS settings to align with New Zealand’s nationally determined contributions (NDCs), reinforcing the ETS as the primary tool for driving domestic emissions reductions. It also defers the fourth emissions budget, allowing more time to incorporate the updated 2050 target.

Importantly, the legislation confirms the Government’s decision to retain the existing net zero target for long-lived greenhouse gases. Mr Watts said the Government carefully assessed advice from the Climate Change Commission, including a proposal to move to a net-negative target, but concluded that doing so would impose excessive economic costs without proportionate climate benefits.

He added that current projections indicate New Zealand is on track to meet its net zero target eight years ahead of the 2050 deadline.

The Bill was passed under urgency to provide timely certainty for the agriculture sector. Mr McClay said prolonged debate over methane targets had created uncertainty and that the focus must now shift from discussion to implementation.

The Government said the decision was clearly signalled in advance, formed part of coalition commitments, and was developed transparently through an independent methane review process.