New Zealand's Treasury estimates it could cost between $4.4 billion and $5 billion to buy overseas carbon credits needed to meet the country's 2030 Paris Agreement target. An additional $0.2 to $1.6 billion may be needed for the 2035 target. The cost depends on future policy decisions and market conditions. Prime Minister Christopher Luxon has said the government will not spend billions offshore or shut down farms to meet the target. The Green Party argues domestic policies alone cannot close the 84 million tonne emissions gap. Treasury published the figures for transparency but stressed they do not reflect any government commitment to purchase credits. Climate Change Minister Simon Watts says a renewable energy boom and new methane-reducing farm technology could help meet the target domestically. However, Treasury warns that substantial offshore credit purchases are likely if the government chooses to honor its pledge.
