With a general election approaching and climate change policy once again in the spotlight, now is a good time for New Zealand businesses to look at the key climate-related risks, regulatory developments and strategic issues that could influence critical decision making going into 2027.
Law firm Bell Gully has released a new report in its Big Picture series, looking at the recent developments around climate adaptation, reform affecting the New Zealand Emissions Trading Scheme, climate litigation and climate-related disclosures, and how they could shape the operating environment for New Zealand businesses. While the pace of change could be influenced by the upcoming general election, the report highlights the significant climate-related developments that are emerging beyond emissions reduction policy.
Bell Gully Partner Natasha Garvan, one of the authors of The Big Picture: Climate Change - key developments in New Zealand climate regulation and policy, said the Government’s introduction of the Climate Change Response Amendment Bill in July is the source of changes across a range of areas. “The bill requires local government to prepare mandatory climate adaptation plans for areas that face the highest climate-related risks, which is the first clear mandate for climate adaptation planning we’ve seen in New Zealand,” she said.
The same bill introduces a new market governance framework for the NZ ETS and secondary carbon markets, while laying the groundwork for the participation of non-forestry carbon removal activities in the scheme.
The report also explores the direction of New Zealand’s climate-related disclosures regime against the backdrop of proposed reforms and continuing international developments. Elsewhere there have been a number of case law and enforcement developments in climate litigation, including signs of an anti-ESG counter-movement overseas that could suggest the emergence of a ‘two-front’ litigation risk for corporates.
“With the election approaching and significant reforms underway, businesses should be monitoring developments and understanding the emerging risks and regulatory expectations.” Garvan said. However, she said it was also important for organisations to look beyond short-term political uncertainty.
“The direction of individual reforms may evolve but the underlying climate risks remain. Businesses that maintain a long-term focus on resilience, and the climate risks and opportunities that could shape their operations, will be best placed to navigate the changes that come.”
For further details see The Big Picture: Climate Change – key developments in New Zealand climate regulation and policy
Disclaimer: This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
