Think globally, act cooperatively: Progressing offshore mitigation for Aotearoa New Zealand

This paper shows how Aotearoa New Zealand could work with other countries to accelerate global climate progress, by funding offshore mitigation to help meet its 2030 target under the Paris Agreement.  

The world is off track to prevent dangerous climate change. Changing course requires funding and other support for faster mitigation in developing countries. In Aotearoa New Zealand, from 2015 to 2021, both National- and Labour-led Governments deliberately pledged to deliver more ambitious 2030 Paris targets than were feasible domestically, intending to meet the difference by funding mitigation in other countries. Successive Governments have not yet acted on this pledge and Aotearoa New Zealand faces a substantial target gap.

This paper highlights that securing public support for sending mitigation funding offshore remains a critical barrier to Aotearoa New Zealand meeting its 2030 Paris target. It identifies four competing mindsets paralysing progress: Dismissive Detractors, Carbon Colonialism, Domestically Driven, and Least-Cost Compliance. Each applies a narrow lens to what serves national interests.  By shifting to a mindset of Climate Cooperation, Aotearoa New Zealand could combine domestic climate action with funding for offshore mitigation, in ways that serve both national and global interests. 

To get started with offshore mitigation, the paper recommends the New Zealand Government make clear policy and funding commitments, adopt a portfolio approach, partner with other countries, start with pilot initiatives, and clarify the roles of the private sector and carbon markets. 

Aotearoa New Zealand is not alone in this effort. The findings from Motu Research will be of interest to other countries striving to enhance climate cooperation.

Citation

Leining, Catherine, Sasha Maher, Hannah Kotula. 2024. “Think globally, act cooperatively: Progressing offshore mitigation for Aotearoa New Zealand.” Motu Note 54. Motu Economic and Public Policy Research. Wellington, New Zealand.