In 2016, the then-National government signed the Paris Agreement, committing Aotearoa to a 30 (later 50) percent reduction in emissions by 2030. But since then, successive governments have failed to do enough to meet the target, leaving us with a huge shortfall, currently estimated at 84 million tons. The target is legally binding, and Aotearoa is expected to make up that shortfall using Paris' international cooperation mechanisms. But despite that clear international commitment, the government is refusing to publicly say whether it will meet our obligations. Instead, Ministers have repeatedly talked openly about cheating on the deal.
RNZ has a piece today about the problems this is causing. The lead is potential trade problems, as both the EU and UK FTAs include commitments to meet our Paris obligations (so: we can expect trade sanctions, likely targetted at the polluting dairy industry, if we don't). But its also affecting domestic policy. Currently this is predicated on the government meeting its obligations. But if it does not, then He Pou a Rangi will have to recommend stronger action, as they are legally required to consider "New Zealand’s relevant obligations under international agreements" as well as our (weaker) domestic targets:
The commission needed to clarify whether offshore purchases were still on the table, because otherwise it would need to change its recommendations on the level of carbon cuts the government should make here using the Emission Trading Scheme, in order to remain compliant.Basically, if the government isn't going to use international cooperation, then the Paris 2030 target becomes a default domestic 2030 target, and He Pou a Rangi will be legally obliged to recommend radical cuts to meet it. Of course, National could remove that obligation, but that sort of overt repudiation would completely end their game of pretending to care while doing nothing, alienating kiwi voters and triggering those international trade sanctions.The commission noted that making all the cuts here would be "costly and disruptive" and also not possible using only the country's main climate tool of the Emissions Trading Scheme, which covers less than half the country's greenhouse gas emissions.
RNZ also talks about Treasury not knowing whether to recognise the cost of meeting Paris - estimated at up to $24 billion - as a liability on the government's books. Which is something that would both focus the mind and act as a clear financial incentive for emissions reduction policies, effectively setting a government carbon price of $285/ton for policies to be measured against. But it would also blow all future surplus projections out of the water, which is another reason why Ministers really want to talk up uncertainty and won't commit. And given what they did to pay equity to remove a liability half that size, uncertainty is probably the lesser of two evils at the moment.
But whether the government recognises that obligation or not, we will be paying regardless - if not under the international cooperation mechanism, then in cleaning up after floods and drought and fires and cyclones, plus the social costs of insurance retreat and sea-level rise. The Paris Agreement is meant to reduce those long-term costs. Refusing to meet it is just another example of the long-term problem of New Zealand governments: taking the cheap, short-term option, and refusing to invest for the future.
