After a summer break of beach days, coastal walks and barbeques, many of us will have returned to work with a renewed appreciation for the great outdoors. The past year saw significant developments in climate change and sustainability law relevant to building an environment that is resilient for summers to come. In this update our experts unpack the key legal and policy shifts of 2025 and issues set to shape the climate change and sustainability landscape in 2026.
How does the proposed RMA reform address climate change and sustainability?
In December 2025, the Government unveiled its new Planning and Natural Environment Bills, which are set to replace the Resource Management Act 1991 (RMA). While the 'sustainable management' purpose from the RMA is missing from the Bills, both explanatory notes state that the intention of the new system is to make it easier to get things done while also adapting to the effects of climate change and safeguarding the natural environment. The new system requires each region to create a "spatial plan", which will be the key mechanism for identifying areas for development and managing risks from natural hazards. The Natural Environment Bill also seeks to tackle climate change by enabling central and local government decision makers to establish binding environmental limits on emissions, land use, and water. The Government has indicated that the Bills will be enacted by mid-2026 and the new system is intended to be fully operational by 2029.
Renewable electricity generation in the fast lane
A suite of updates to RMA national direction instruments took effect on 15 January 2026. Among these, the amended National Policy Statement for Renewable Electricity Generation and the new National Policy Statement for Electricity Networks aim to rapidly accelerate renewable energy development and double output by 2050. This is also reflected in the explanatory notes to the new Planning and Natural Environment Bills which state that one of key objectives of the new system is to "enable the delivery of high-quality infrastructure for the future, including doubling renewable energy."
Will 2026 see the return of offshore oil and gas exploration?
In July 2025 Parliament reversed the ban on offshore oil and gas imposed by the former government in 2018. The ban had been intended to address climate change and accelerate the transition to renewable energy, but constrained gas supply, high power prices and broader economic pressures were cited as reasons for a change in approach. The Government has stated that the change is part of a reprioritised focus on climate resilience and securing reliable energy supply into the future. With 2026 being an election year, these issues are likely to be prominent on party agendas and the subject of debate.
Spotlight on climate change in the Supreme Court
In December 2025, the Supreme Court in Climate Clinic Aotearoa v Minister of Energy and Resources held that climate change is a mandatory relevant consideration for a decision maker when deciding whether to offer petroleum exploration permits for tender under s 24 of the Crown Minerals Act 1991 (CMA). This decision comes in the wake of the Climate Clinic Aotearoa judicially reviewing a decision made by the Minister of Energy and Resources to grant two onshore petroleum exploration permits.
The Supreme Court noted that the purpose of the CMA is to “to promote prospecting for, exploration for, and mining of Crown owned minerals for the benefit of New Zealand” and although it ultimately dismissed the appeal on the basis that the decision maker sufficiently engaged with climate change issues, the Supreme Court held that it is "indisputable that climate change threatens human well-being and planetary health." This judgment demonstrates the increasing importance of climate change as a key consideration in decisions impacting New Zealand's greenhouse gas emissions.
Climate Change Response Act reforms expected in 2026
On 4 November 2025, the Government announced that significant reforms to the Climate Change Response Act 2002 are coming in 2026. Reforms intend to promote efficiency and effectiveness by simplifying processes and providing greater flexibility to how emissions reduction plans and budgets are developed and updated. Key adjustments include refining the role of the Climate Change Commission and removing the link between New Zealand Emissions Trading Scheme (NZ ETS) and international climate obligations.
The Climate Change Response (2050 Target and Other Matters) Amendment Bill enacted in December 2025 lowers New Zealand's methane target range from a 24 - 47% reduction to a 14 - 24% reduction from 2017 levels. The new methane reduction target is intended to provide farmers and exporters with a clear pathway to reduce emissions while maintaining productivity and achieving the country’s long term climate goals.
Tighter controls on farmland to forestry conversions under Emissions Trading Scheme
In late 2025, the Government enacted the Climate Change Response (Emissions Trading Scheme – Forestry Conversion) Amendment Act 2025. This legislation introduced new restrictions on registering land in the NZ ETS where farmland is converted to exotic forestry. The changes are designed to slow large-scale, carbon-driven land use change and to safeguard productive farmland.
Under the new regime:
- Large-scale conversion of productive farmland to exotic forestry for NZ ETS purposes is restricted
- New eligibility criteria apply to land seeking registration in the NZ ETS following conversion from farming
- Whole-farm conversions are subject to increased scrutiny
- The regime differentiates between production forestry and forestry established primarily for carbon income.
These amendments significantly narrow the pathway for farmland to be registered in the NZ ETS through exotic forestry. Land that previously qualified for NZ ETS registration may now be ineligible. Land use history, land classification, and the purpose of planting have become critical factors in determining eligibility.
Watered down climate-related disclosures regime
In late 2025 the Minister of Commerce and Consumer Affairs, Scott Simpson, outlined the Government's proposal to make significant changes to the climate-related disclosures (CRD) regime in order to reduce compliance costs and remove a potential barrier to stock exchange listings. The key changes are:
- The climate reporting threshold for listed issuers will be raised from $60m to $1b in market capitalisation, and consequently the number of listed issuers who are captured will fall from 100 to 34
- All 22 current climate reporting entities (CREs) that are managers of registered investment schemes, including KiwiSaver schemes, will be removed from the regime, due to feedback from fund managers and investors that the disclosures are not useful for making investment decisions
- Deemed director liability if a company breaches the climate reporting rules will be removed
- Directors and CREs will not have to show the same level of evidence for climate disclosures as for financial disclosures, recognising that climate reporting is more future focused and uncertain than financial disclosures, which draw on historical information.
Registered banks, credit unions, building societies and licensed insurers that are CREs will be unaffected by the changes.
Commerce Commission watching greenwashing and sustainability initiatives
Greenwashing (misleading environmental claims) continues to be a key Fair Trading Act 1986 risk area for businesses. In announcing its annual priorities last year, the Commerce Commission said that an area that it is "really watching" is greenwashing, even though it was not included on its priority list. The Commerce Commission's activity last year included issuing a warning to a retailer about a "sustainably sourced cotton" claim. Various organisations such as Consumer NZ, and regulators in other countries like Australia, have also been active in taking action against green claims, and we expect we will continue to see greenwashing as a focus in 2026.
The Commerce Commission will also be watching sustainability initiatives involving collaboration between competitors. In Australia, one in three authorisation applications for business collaborations in 2024 considered environmental benefits. While authorisation applications are less common in New Zealand, environmental benefits may increasingly be considered by the Commerce Commission. Agreements on sustainability measures were also specifically mentioned in the Commerce (Promoting Competition and Other Matters) Amendment Bill policy development process as a potential candidate for a class exemption.
For more information on our climate change and sustainability expertise, or to contact one of our team to discuss, please see our Climate change and sustainability webpage. You can also sign up to receive our Climate change and sustainability publications at Subscribe | Buddle Findlay.
Co-authored by Shereen Lee (Solicitor) and Kayla Strong (Summer Clerk).
