A Detailed Analysis of the Zero Carbon Bill's Impact on NZ Economy

This report provides a comprehensive analysis of New Zealand's Zero Carbon Bill, examining its origins in the Paris Agreement and its goals to reduce greenhouse gas emissions by 2050. It delves into the bill's impact on various sectors, particularly the manufacturing, farming, and agricultural industries, highlighting potential economic consequences and challenges faced by businesses. The report discusses the government's strategies for mitigation and adaptation, including the establishment of emission reduction targets and the implementation of the New Zealand Emissions Trading Scheme. It also addresses the bill's alignment with the Paris Agreement and the broader context of global climate change, emphasizing the need for a transition to a low-emission economy and the importance of stakeholder engagement. The analysis considers the role of the Productivity Commission and the potential for increased carbon prices to drive emission reductions. The report also acknowledges the impact on indigenous communities and the dairy industry and suggests steps for companies to navigate the new regulatory landscape. The report emphasizes the need for a well-informed and continued progress towards the emission along with a climate resilient future.

Running head: ZERO CARBON BILL
ZERO CARBON BILL
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Abstract
This paper will be analyzing the Zero Carbon Bill initiated by the government of New Zealand
aiming to mitigate the issues of climate change. This legislation has its origin in the Paris
Agreement regarding climate change in order to reduce the greenhouse gas emissions through
different types of industries. Through this legislation, the government will be ensuring reduced
level of greenhouse gas emission in one hand and develop other sustainability resources
supportive for the living of the people in New Zealand. Now due to this particular bill different
companies are facing issues. First of all they are having high emission background mainly
operative in the manufacturing sector. Therefore they are to give high emission prices to the
government which will enhance the overall costs. This will affect the economy of the country as
these companies are responsible to grow the GDP of the country. In New Zealand farming and
agricultural products are the main industries focusing on the production of dairy products and
processing. These companies will be facing issues due to this zero carbon bill. In this report, a
detailed discussion about the bill above mentioned has been done so that each of the factors can
be understood well and how this is having an impact upon the business sectors in the country has
been analyzed. Finally, what steps the companies facing issues due to this legislation change
from the part of the NZ government, need to follow have been detailed so that operating with the
government and other stakeholders become easy.
Introduction:
The aim of this paper is to discuss the impact of the environmental drive taken by the
New Zealand government through the Zero Carbon Bill. In order to get this amendment bill
implemented, there are different factors to be considered. The first and foremost of these are the

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support of the communities. This is due to the fact that the bills will be affecting the people
residing in this region and sustaining on the agricultural sector. The change in the climate for
which the government has taken this type of drive mainly affects the agricultural sector and other
sustainability resources supportive for the living of the people in New Zealand. This is the reason
why the government as initiated partnership with different stakeholders like the industries
operative in the manufacturing as well as agro business in the country.
The issue of climate change is hitting hard in the climate of New Zealand along with the
other countries of the world. As the country is an island state which is surrounded by oceans
around it. Most of the residents have aboriginal background and they are the part of most
important agriculture sector in the country. These residents have their connection with nature in
such a manner that any changes in the environment will be effective in their productivity and
farm’s operation. Climate change issue has been bothering the government of New Zealand for
long which had mandated it to make new policies every time to meet the targets set by the global
environmental summits. This paper will be dictating the actual issues that the business of this
country is facing due to this particular bill and how these issues will be solved in an effective
way.
Discussion:
The long awaited Zero Carbon Amendment Bill for Climate Change Response is
popularly known has Zero Carbon Bill in New Zealand. This particular bill has been introduced
to the Parliament of New Zealand in 2019 and followed a long consultation process. The aim of
this particular bill is to take initiative for reducing the net carbon emissions from the industries
and other sources in New Zealand to zero. The objective of this bill has to be attained these

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objectives by 2050 for meeting the targets set in the Paris agreement in relation to the
environmental factors and sustainable growth through changing the industrial polices. This Zero
carbon Bill needs a significant regulatory changes will be ensuring the reduction of emissions
targets to be met. This change through the amendment bill in the country may affect different
sectors of the economy that will include the agricultural sector as well as the other high emission
manufactures. The main target remains to reduce the carbon emission level in these primary
producers who contribute the largest portion of carbon to the environment.
Global climate change has been the pressing reason why this type of initiative has been
taken by the UN and all the related nations with this organization. This undermines overall
efforts of the systems for safeguarding the economic, social, cultural, environmental and cultural
properties of the country. New Zealand is already one of the lowest emissions producers of the
dairy nutrition in world but in the recent times, the dairy sector is responsible for 22 per cent of
all the country’s emission. This is the reason why the government of New Zealand has initiated
to curtail down the emission in this particular industry. The Zero Carbon Bill has placed targets
to decrease all the greenhouse gases like carbon dioxide, nitrous oxide and Methane. The aim is
to reduce carbon dioxide and nitrous oxide to net zero by 2050. Methane reduced by 10% by
2030 and provisional target of 24 to 46 per cent reduced by 2050. In order to achieve these, the
government needs to take two way actions-
 Adaptation of measures to plan and build resilience of the country to the impacts
of the ongoing climate changes.
 Mitigation measures to mitigate the domestic transition of the country to the lower
emission future and maintain alignment with the direction of the global economy.

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As mentioned before, the emission rate off this country is low in comparison to the other
countries situated in the neighborhood. This is due to the fact that New Zealand already has
policy and legal framework existing in order to address the issues of the climate change. This
includes the Climate Change Response Act (CCRA) 2002. This had established the New Zealand
Emissions Trading Scheme (NZ ETS) and National Greenhouse Gas Inventory in the country.
Along with this, the targets to achieve of 2050 emissions was notified in the New Zealand
Gazette in 2011. During these years despite these, the greenhouse gas emissions increased
subsequently during 1990s even after the gazette was published in 2011 to reduce the emission
level. The existing framework had fallen short for providing a credible and stable policy
environment needed for long time planning, investment by the private sector and decision
making by the private sector along with civil society. With the signing of the Paris agreement in
which the country has entered, New Zealand faced changing global context. According to the
Paris Agreement, the world has committed to maintain the average the temperature of the world
rising below 2 degrees Celsius. In addition to this, the achievement of overall GHG neutrality
that balances global emission along with removals by 2050.
In aligning with the Paris Agreement, the government of New Zealand has proposed to
introduce the bill mentioned above. The minister for climate change in the ministry for the
Environment has sought the decisions to introduce the Zero Carbon Bill. In order to
acknowledge and manage the challenges of climate change, this initiative to increase carbon bills
imposed upon the industries operating in the region have become popular (HEAD & PH, 2018).
In this regard two fold decisive action will be taken to mitigate the issues of climate change.
These actions will include mitigation measures to implement in the country’s domestic
transitions to the low emission in future and adaptation of the measures to plan for as well as

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build the resilience to the changing climate change impacts. This particular bill is the result of a
report of The Productivity Commission regarding carbon emission in the New Zealand
environment in 2018. The Productivity Commission has stated that the price of carbon needs to
be increased from the existing price from $25 per tonne to $250 per tonne so that the country can
achieve the required net reduction in the domestic emission for meeting the target of the Paris
Agreement (Ilyas et al., 2019).
Now this cost may affect the regular business pattern and connection of the partners.
There are different companies which may come under the environmental issues as they may not
have the proper infrastructure for following this policy but needs to invest more in this aspect.
This cost imposed in some of the part of the economy in the country can change the behavior of
the investors for increasingly onerous regulatory requirements on asset prices. The high emission
sector of the economy of New Zealand will therefore be initiative allocation of capital away
towards the other directions.
The government is taking initiatives to understand the costs and potential risks of the
damage of the issues of changing climate increasing significantly and can be exacerbated without
much clear direction for the investors along with the decision makers (Jackson & Bailey, 2019).
The integrated and targeted nationwide plan is always needed for enabling the citizens of the
country to realize, asses and then plan for adapting process to meet the need of delivering the
prosperity in the emissions constrained future. To the government this is important to realize that
the process of creating opportunities to the productive business and transition of the sustainable
as well as low emission economy. To the government of New Zealand, the quicker the initiatives
will be taken the factor will be the mitigation process (Hannon & Zaman, 2018). This can avoid
any abrupt changes that can prevent exacerbation of the overall economic along with social costs

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of the transition. Early climate changing action has the capability to place the country at the
comparatively advantageous positioning the global context. This has been aligned with the
initiative of the country’s government to provide improved environmental, social as well as
health outcomes. In this way the governmental intervention in promoting the Paris Agreement
and implementing the needed changes in attaining the environmental goals from the part of the
country. The government intervention established an enduring institutional architecture for
setting clear emission reduction objectives so that it can be assured the country will be making a
well-informed and continued progress towards the emission along with a climate resilient future
(Knight-Lenihan & Scanlen, 2018).
This particular amendment bill is not the only pioneer of the government’s initiative to
take care of the environment issues but the country already has legal policy frameworks in in
order to address the problems of climate change. They include the acts like Climate Change
Response Act or CCRA in 2002 that aimed to establish a national greenhouse gas inventory
along with the New Zealand Emissions Trading Scheme. Now the impact of these acts are not
present in the policies of the companies hence the need of a new amendment bill is found. The
launching of this bill therefore aligns itself with the emissions reduction target by 2050. This was
also seen to be notified by New Zealand Gazette 11 in 2050.
This Zero Carbon Amendment Bill for Climate Change Response will also be connecting
the interest of the communities depositing upon the agricultural produce. There are several
communities living in the country like Iwi, Hapori, Maori and Hapu, who sustain by collecting
resources from the forests and farming. These people are the most affected human being due to
climate change. Accruing to many of the critics of this bill have pointed out that these partners
will be positively affected with this Zero Carbon Amendment Bill in New Zealand. On the other

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hand the critics have also pointed out that the dairy industry for which the country is reputed in
all over the world are mainly supported by thee communities. The dairy industry of New Zealand
are built and maintained by many of the indigenous communities who with their expertise have
contributed positively to the growth of this industry. However this production of dairy nutrition
is responsible for 22.5 % of the complete emission in this country’s environment (Forde,
Springford & Metcalfe, 2018).
According to the policy makers, the introduction of this Zero Carbon bill will be
providing a continuing and long lasting framework for transition to the development of a low
emission and climate resilient country. The exiting framework had three key goals which include
leadership with the country, a productive, sustainable and climate resilient economy and a fair
and inclusive society in New Zealand. In working with the tertiary sector the zero carbon bill in
New Zealand has gained support from all the industries though there is an economic reason to be
bothered about. As mentioned before this bill will be affecting the interest of different industries
in different way the situation will depend upon the actions of the individual business and
households and the policy choices by the future government (Leahy et al., 2019). The economic
analysis has taken a look for the areas like model challenges for the economic growth of the
sectors and households, competitiveness in business challenges for innovating faster and wider
benefits of climate action.
In this regard to modelling approaches have been used one of which is top down model
and another is bottom up linked sector. The top down model has been used by New Zealand
Institute of Economic Research and the bottom up lynx sector is developed by concept
consulting and public policy research. Climate action for meeting new 2050 targets can have
competitive impact on the businesses which will drive faster innovation. there are potential

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benefits of this policy designed to achieve lower emission like health outcomes and the
emissions benefit of the Other policies like transport legislation for reducing congestion
(Chapman et al., 2017). As economy of this country will be continuing to grow under any of the
targeted options by 2050 therefore the emission of greenhouse gas will grow also taking further
action on climate change. In this regard the government cannot (Leining, Kerr & Bruce-Brand,
2019). The economy from growing but needs to substantially expand the forest estate and
continue to innovate. In order to keep the economy growing by balancing the greenhouse gas
emission some households and sectors in New Zealand can face higher costs as well as more
destruction than the others. There for finding out opportunities and challenges are needed.
Opportunities will include high rate of innovation in the sectors exposed to the high emissions
price for leading towards growing productivity. Secondly new business opportunities in the
lower emissions sector will get popularity. Thirdly health benefits will be gained and the climate
change which is affecting the economy of New Zealand so far will be eliminated. The challenges
that the government through this bill will be facing related to slower rate of economic growth
due to higher emissions prices and other transition policies (Bunning, 2014). Competitive level
will be issued in the trade exposed omission intensive Industries. The household income will be
slowing down and declining in the output and the jobs for high emission sector will grow.
These are the reasons why some of the businesses will be facing competitiveness
challenges but others will be innovating faster stock as the government has taken strong climate
action the business is exporting to the overseas markets can become less competitive when the
climate action leading to higher cost will be present then their overseas competitors (Lovell &
Corbett, 2018). Here International evidence has been found that there is a close connection
between the strong climate action of the Government and growing rate of innovation. the

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businesses which will be facing issues due to high emissions prices will go for choosing
innovative initiatives so that they can bypass this type of challenges in the future there will be
more ambitious with their targets and there will be a behavioral changes to meet the target set by
the government through this bill (Besen, Boarin & Haarhoff, 2020). For example Agricultural
Research and Development will grow and this will support the farmers in the profit making
scenario as well as developing this sector in a sustainable way.
Adaptive systems:
Adaptive systems is reacted to the partnership of the government with the business
companies in the country. This can be associated with the process that changes the behavior of
the people to respond to the environment. This adaptive changes can take place in the process of
achieving any goals or objectives. In the case of attaining Zero Carbon bill that the New Zealand
government has initiated to be followed by the corporations operating in the same region. The
NZ government has taken this initiative to achieve the environmental sustainability goal by
reducing the carbon emission process from the companies. The adaptive system can be applied to
find path to increase awareness about the sustainability factors by limiting the carbon emission.
The adaptability of the systems will be attained only through the process of learning. The
government policies as will be changing in order to align those with the objectives of the Zero
Carbon bill.
This is the reason why the company needs to adapt with the situations by creating scope
for employability, recruitment and retention. The growth of the companies will be supported
only when the employees have proper understanding of the sustainability factors in their
learning. The training process that the organizations choose to make their human assets more

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effective need to be aligned with the sustainability factors so that the policies changed due to this
particular bill initiated by the government of New Zealand. The adaptive nature of the
organization can only found in the case of learning organistion and as the government wants
each and every partners to play important role in meeting the demands of the sustainability
factors. This will enable the companies to implement changes in their organization and make
effective change in the behavior and skills of the employees. As the technological growth is one
of the most important factors that help the organizations to improve the skill and competitive
advantage for the companies. The technological growth of the companies will be helping them to
measure the emission level and then to reduce it without hampering the production. In the case of
dairy industry, the business needs to have proper incorporation of the technological tools and
instruments so that the production level increases but not the carbon emission (Kannan, 2018).
The need of sustainability progress by the corporations are to be supported by the technological
growth so that they can buy imported tools and machines that reduce mission level effectively.
These technological growth are to be imbibed into the culture of the company so that the
employees get the scope for learning the operations of the tolls and support the initiative to
reduce carbon emission by the government of New Zealand.
Sustainability factors:
As the aim of this Zero Carbon Bill is related to the sustainability factors by reducing
carbon emission both in the domestic market as well as in the international in order to fight
against the climate change, detailing sustainability is essential. Many organizations which
generally enhance strong and adaptive growth in the market gives more emphasis in the part of
ensuring strong mode of sustainability in the part of adopting innovative business strategy in the
market (Poponi, et al., 2019).

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As compared to certain factors that are associated with the factor of sustainability in the
business generally gives more emphasis on two major categories
 The first part is based on certain innovative effects the particular business has on
environment.
 The other part is related to the mode of effect the business has on the society.
The goal of adopting sustainable mode of business strategy is related to the part of making
certain positive impact under any one of those above-mentioned areas. When the companies fail
in the part of assuming responsibility, under this respective part there can be an opposite effect
leading to certain issues such as social injustice, inequality and environmental degradation. The
environmental sustainability relates to the improvement of the human welfare through protection
of the natural capital like water, air, land and minerals (Anbarasan, 2018). The government of
NZ has taken drive to initiate programs to adapt with the changing climate action. In this regard,
the government has mentioned about the rising sea level and more extreme weather events. This
is the reason why the national climate risk assessment has been formed that will be assessing the
climate risks in an effective way.
These actions will include mitigation measures to implement in the country’s domestic
transitions to the low emission in future and adaptation of the measures to plan for as well as
build the resilience to the changing climate change impacts. This particular bill is the result of a
report of The Productivity Commission regarding carbon emission in the New Zealand
environment in 2018. All of these measures will be helping the government of New Zealand to
identify where they need to work and how they will mitigate the situation without harming the
production of the corporations partnered with it (Martens & Carvalho, 2017). All the

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sustainability disequilibrium will be reduced only through the plans that the government will be
doing with the partners. The sustainability disequilibrium therefore can be said to be a threat to
the proper achievement of the policies initiated by the country’s government. This can be related
to the human resource factor where the employees have proper understanding why the company
needs to reduce the carbon emission, management waste properly and contribute less in the
pollution level (Shi et al., 2018).
Recommendation:
In order to solve the impact of the climate change upon the sustainability growth of the
country, the government has initiated the Zero Carbon Bill. Now the impact of this particular bill
can affect the production process of the companies partnered with the government of this
country. the partnership with the aboriginal communities like iwi, hapu, hāpori and Māori
researchers needs to be built with the belief of commitment that they will be learing about
sustainable process and change their operation in the dairy industry.
As mentioned before, the dairy farms are the chief target for the reduction of the emission
of greenhouse gases, therefore they are to estimate the current emission and develop steps to
mitigate those. As the most of the partners affected by this Zero Carbon Amendment Bill for
Climate Change Response are associated with the production industry both the manufacturing of
goods as well as farming, the responsibilities are similarly needed to be taken. This is the reason
why the companies need to take various steps so that they can align their policies with this bill in
one hand and find the path of sustainable growth (Nsaliwa, Vale & Isaacs, 2015). Each of the
companies need to estimate the current emission and develop a specific plan for managing and
reducing these emissions through the farm management improvements. Any level of emissions

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however leads to face challenges by the farms but this is necessary for broader environmental
issues. This is needed for the maintenance of water quality, erosion control and biodiversity. The
changes may not be affecting immediately but there are various steps that the farmers in the agro
business need to take to being prepared. The process of knowing the number, calculating the on
farm emissions and engaging overseers can solve this issue. In addition to this, the farms need to
consider all the needed management changes made to reduce emission.
Each of the farms will be taking initiative to estimate current emission and develop a plan for
managing as well as reducing the admission through the farm specific management
improvements. Despite the fact that in the level of emissions reduction present a challenge for
the sector but they need to be managed alongside the wider environmental issues like
biodiversity, water quality and erosion control (Reisinger & Leahy, 2019). This changes will
never come to effect immediately but there are some steps which the farmers in the dairy
industry of New Zealand will be taking to prepare in order to face the challenges. Firstly they
will be considering the knowledge of numbers by calculating on farm emissions.
Secondly they will think about which management changes can reduce emissions. In this
aspect there are two factors to be considered. One is improvement of feed efficiency which is the
best way to reduce emission of Methane Gas as a research shows that there is a direct relation
between the Methane production and feed intake. production and improvement of the uses of
Nitrogen fertilizers can reduce nitrous oxide emission finally they need to also monitor the future
technologies being developed for mitigating this emission issues and utilize those in the farming
process (Bennett, Macmillan & Jones, 2015). These Technologies will be helping to respond and
influence the policy package for making this as equitable and fair as possible. Through this

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technology the farmers will be able to keep investigating in the research and development
practice for creating breakthrough Technologies and reduce emissions.
Finally it can be stated that the Zero carbon bill has mainly aimed to reduce and mitigate
Greenhouse gas emissions in the industries relating to the farm management change
infrastructure investment and the planting and retiring land. This is the reasone why the
employees of the corporations or the partners of the government of the New Zealand will be
initiating training to the employee so that the understanding of the needs of sustainability for the
growth of the organistion as well as the country can be attained. Therefore the best option for
each of the forms will be growing depending upon the factors like the region and farmers system.
While selecting the changes for adopting on the farm the owners can find the options from all of
these three categories for working well together. This is how the government of New Zealand
will be able to reduce the issues related to sustainability barriers and climate change.
Conclusion:
Therefore it can be concluded that Global climate change has been the pressing reason
why different bills to mitigate carbon emission and related types of initiative have been taken by
the UN and all the other related nations with this organization. In doing so, the government of
New Zealand has passed the Zero Carbon Bill as a mitigation measure to mitigate the domestic
carbon emission of the country to the lower emission future and maintain alignment with the
direction of the global economy.

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