The New Zealand Government has revised the criteria for conducting assessments of the climate impacts of policy proposals, a move that may reduce the number of policies subject to such scrutiny. Climate Change Minister Simon Watts explained that the changes are intended to focus attention on proposals most relevant to the country’s climate commitments and emissions budgets.

Under the updated framework, ministers receive a Climate Implications of Policy Assessment (Cipa) when policy proposals reaching Cabinet are deemed significant in terms of their effects on greenhouse gas emissions. These assessments form part of standard Cabinet submission requirements, which also include analyses of economic, human rights, and social implications.

Key among the recent changes is the adjustment of the threshold that triggers a Cipa. Previously, a policy required assessment if it was expected to impact emissions by 500,000 tonnes of carbon dioxide equivalent (CO2e) or more within the first decade. The new threshold links the trigger to 0.25% of the total allowed emissions under any current emissions budget period, a figure that varies as the government tightens carbon limits.

For the present budget period, 0.25% equates to roughly 760,000 tonnes of CO2e, a higher threshold than before. Watts said this approach better aligns the assessments with the emissions budgets, which become stricter over time in pursuit of national emissions reduction goals. The government also introduced new triggers for assessments related to policies that might materially affect emissions tied to ongoing emissions reduction plans (ERPs) or the achievement of emissions budgets.

According to an internal review, the raised threshold is expected to reduce the number of policies undergoing Cipa based solely on emissions quantity. However, officials judged the risk that significant policies with material climate consequences would be missed as low. Further updates include the removal of a specific forestry-related threshold and an explicit requirement to consider indirect emissions impacts, which had previously been provided for but calculated on a voluntary basis.

Francisco Hernandez, associate climate change spokesman for the Green Party, expressed concern that the higher threshold could allow policies with substantial climate effects to avoid necessary assessment but acknowledged that other changes, such as better alignment with emissions budgets, were positive developments.

The new Cipa requirements were formalized in a Cabinet Circular issued last week, superseding guidance established in 2020 under the former Labour Government. The changes reflect Cabinet decisions made last year and aim to ensure that climate considerations remain integrated into the policymaking process while focusing scrutiny on the most materially relevant proposals. Watts emphasized that the overall impact on the volume of assessed policies would depend on the nature and number of Cabinet proposals presented in any given year.