Environmental performance reviews New Zealand 2017 HIGHLIGHTS WHAT ARE EPRs? OECD Environmental Performance Reviews (EPRs) provide evidence-based analysis and assessment of countries’ progress towards their environmental policy objectives. They promote peer learning, enhance government accountability and provide targeted recommendations to help countries improve their environmental performance. They are supported by a broad range of economic and environmental data. Each EPR cycle covers all OECD member countries and selected partner countries. All reports, and more information, are available on the EPR website: http://oe.cd/epr. THE THIRD EPR OF NEW ZEALAND New Zealand joined the OECD in 1973. The previous Environmental Performance Reviews of New Zealand were published in 1996 and 2007. The report reviews the country’s environmental performance since 2007. The process involved a constructive and mutually beneficial policy dialogue between New Zealand and “New Zealand’s natural environment the countries participating in the OECD Working Party on Environmental Performance (WPEP). The OECD is is part of its cultural identity and a grateful to the two examining countries: Australia and the United Kingdom. pillar of its economic growth, but it The EPR provides 50 recommendations, approved by the Working Party on 9 November 2016. They aim to can’t be taken for granted. It is vital help New Zealand green its economy and improve its environmental governance and management. to make full use of existing tools to Particular emphasis is on water resources management and sustainable urban development. curb environmental pressures.” Simon Upton http://oe.cd/epr OECD Environment Director 2 H Overview IGHLIGHT New Zealand’s natural environment provides tremendous benefits on several levels. Easy access to pristine S wilderness and good air quality heighten quality of life for New Zealanders, while the spectacular landscapes attract millions of visitors ever year. Apart from the economic benefits of tourism, the natural environment provides the basis for the country’s large exports of dairy, meat, wool, fruit, vegetables, fish and wood. But New Zealand’s growth model is approaching its environmental limits. Greenhouse gas (GHG) emissions are increasing. Pollution of freshwater is spreading over a wider area. And the country’s biodiversity is under threat. OPPORTUNITIES z an international reputation as a green and clean country z an advanced and comprehensive natural resource management system z a long tradition of public participation in decision making z a well-developed research and innovation system with New Zealand competitive advantage in several environmental technologies NEW ZEALAND 2015 z a low-carbon energy mix with 80% of power generated from renewables Population 4.6 million z a major reform of national freshwater policy to safeguard water quality and availability GDP/capita z a major reform of governance for Auckland, the largest city. (current purchasing power parities) USD 37 300 (OECD average is 40 100) CHALLENGES Total area z the largest share of GHG emissions from agriculture in the 267 711 km2 OECD Population density z a transport system highly dependent on roads and in need of 17 inhabitants/km² coherent taxes (OECD average is 35) z local governments lacking national guidance in many Currency environmental policy areas and struggling with insufficient New Zealand Dollar (NZD) resources In 2015, USD 1 = NZD 1.434 z rising freshwater pollution and scarcity in some regions z complex urban planning that makes it difficult to reduce pressure on land use, housing and infrastructure from population growth. 3 OECD ENVIRONMENTAL PERFORMANCE REVIEW OF NEW ZEALAND Environmental performance | key trends The natural environment is deeply rooted in New Zealand’s cultural identity. By OECD standards, the country is sparsely populated. Land area is split between forests and agriculture, which occupy about 40% each. Most of New Zealand’s flora and fauna species are endemic (native to the country alone). New Zealanders are generally satisfied with their environment and the management of their resources, although more and more are concerned about water pollution and climate change. CLIMATE CHANGE z Greenhouse gas (GHG) gross emissions Figure 1. increased by 6% between 2000-14, while Half of New Zealand’s GHG emissions come from agriculture decreasing by 5% in the OECD as a whole. GHG GHG emissions by sector, 2014 emissions per capita and per unit of gross Energy domestic product (GDP) are among the top five Agriculture Transport industry and other in the OECD. 17% Waste 49% 14% Industrial Manufacturing processes z Nearly half of the country’s GHG emissions & construction 5% 6% come from agriculture (primarily methane 9% from cattle and nitrous oxides from animal Note: Excluding emissions/removals from land use, land-use change and forestry. waste and fertilisers). This is the highest Source: "Greenhouse gas emissions by source", OECD Environment Statistics (database). share in the OECD (Figure 1), and particularly challenging to address. Figure 2. Renewables represent 80% of electricity generation z Transport is the second largest emitting sector. Electricity generation by source People and freight travel mostly by road; the 2000 car ownership rate is the highest in the OECD. Geo Natural gas Hydro 62% Further, the fleet is relatively old and inefficient. 24% 7% Coal 4% z New Zealand has a low-carbon energy mix. Renewable sources represent 80% of electricity 2015 generation (Figure 2), among the highest shares Natural gas Geothermal 16% Hydro 55% 18% in the OECD. The government aims to reach Coal 4% Solar 6% 90% by 2025. Fossil fuels Renewables = 80% z Energy consumption and associated GHG Source: IEA (2016), IEA World Energy Statistics and Balances (database). emissions have increased rapidly since 2010 in all sectors. New Zealand remains among the ten most energy-intensive OECD economies. Next steps | climate change z The government ratified the 2015 Paris Agreement in October 2016 and committed to z Develop a strategic plan to achieve the 2030 climate mitigation reducing GHG emissions by 30% below 2005 target. This plan should identify how mitigating domestic levels by 2030. The Emissions Trading Scheme (ETS) will be a key tool to meet this target. emissions and international carbon markets would contribute to However, the ETS now excludes biological achieving the target. emissions from agriculture. Pricing or z Design and put into action a comprehensive package of GHG regulations are needed to curb these emissions. emission mitigation measures to complement the ETS. Address z Local authorities must consider the effects barriers to investment in low-carbon technology and practices of climate change in their decisions, but in energy, industry, building and transport. many struggle to plan effectively. The first z Assess vulnerability of all major economic sectors to develop vulnerability assessments have yet to be specific strategies for climate change adaptation; help local translated into sectoral adaptation strategies. communities mainstream climate resilience into land-use planning. 4 H IGHLIGHT S BIODIVERSITY z Most flora and fauna species are endemic to New Zealand. Due to the country’s location and New Zealand’s marine environment is one of the world’s most natural history, these species evolved without diverse. Yet most marine birds and more than one-quarter of the threat of mammals. marine mammals are threatened with extinction. z Species extinction rates are among the highest in the world. More than half of amphibians, and roughly a third of mammals, birds, fish Figure 3. The area under environmental protection expanded to and reptiles are threatened. The main threats 30% of the total marine area and 32% of the land territory are invasive species, predators, and habitat % of total marine area (left) and % of terrestrial area and inland waters (right) fragmentation and degradation. under protection, April 2016. z New Zealand is a global leader in recovering 40 30 20 10 0 0 10 20 30 species and controlling pests (see page 8). Germany This expertise has helped improve the status Greece of certain species, but others that are less of a priority continue to decline. Separating New Zealand the management of species and ecosystems UK has made it more difficult to prevent loss of biodiversity. Spain z It remains difficult to integrate biodiversity France protection into land-use planning and Chile management. Landowners have few incentives to maintain biodiversity and ecosystem services Japan on their land. A National Policy Statement for Iceland Indigenous Biodiversity, proposed in 2011, did not pass into law, largely because of Australia opposition from private landowners. While Ireland little information is available, the state of indigenous biodiversity on private lands seems USA to be declining. Mexico z Shares of protected areas are significantly higher than in most OECD member countries Canada and well above international targets (Figure 3). Korea Almost half of the terrestrial protected areas Aichi target (17%) fall within the most stringent international National marine protected areas Strict natural reserves, wilderness areas or national parks Additional area Natural monument, habitat/species management area categories for protection. However, not all Protected landscape, protected area, or no category ecosystem types are well represented in the Regional or international designation network. Note: In some countries, marine