Prime Minister Christopher Luxon has stated the government will not spend billions on overseas carbon credits to meet New Zealand's Paris Agreement emissions targets. Treasury estimates the cost of offshore credits to cover the 84 million tonne emissions shortfall could range from $4.4 billion to $5 billion for the 2030 target, with an additional $0.2 to $1.6 billion needed for the 2035 pledge. Luxon said the government prioritizes economic growth over emissions reduction and will not shut down farms or send money offshore. The Green Party criticized the stance, arguing it is impossible to meet the target with domestic policies alone and calling for honesty about the government's commitment to the Paris Agreement. Climate Change Minister Simon Watts pointed to a coming renewable energy boom and agricultural technology as ways to close the gap domestically. The government recently announced $51 million in funding for methane-reducing technology for farmers. There is no legal penalty for missing the target, but climate groups warn of reputational, trade, and legal risks.
