By Elishya Perera
AUCKLAND, New Zealand (CWBN)_ New Zealand is not on track to meet its Paris Agreement obligations, which creates a “large fiscal risk to the government if they are required to bear the cost of purchasing international units,” the ministerial briefing from the Ministry of Business, Innovation and Employment (MBIE) said.
The briefing noted that despite strengthened domestic action, the country’s gross emissions have been sluggish, which would most likely require the government to use offshore mitigation to fulfil its commitments.
While the government passed the Climate Change Response (Zero Carbon) Amendment Act last term, however, significant structural and investment decisions need to be made over the course of the next three years, in order to adapt to climate change and to meet New Zealand’s obligations towards emissions reductions, MBIE said.
The briefing also discussed the economic impacts of the COVID-19 pandemic. “Despite a responsive labour market, New Zealanders suffer from relatively severe wage scarring during downturns. Following a recession … there is a risk that people return to work in lower-skilled, lower waged roles than what their experience and skill would suggest,” the briefing detailed.
It noted that the Māori and Pasifika communities are likely to be disproportionately affected by the recession. “Education, health and housing outcomes vary strongly by socio-economic background and ethnicity – Māori and Pasifika tend to fare worse. The unemployment rate for Māori and Pasifika is typically more than twice as high than for New Zealand Europeans.”
It was pointed out that border restrictions, as well as foreign nations focusing their attention inward, has made New Zealand “more remote from trading partners and global value chains”.
