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New Zealand's Fourth National Communication under the United Nations Framework Convention on Climate Change

Foreword

Executive summary

1 Background

2. National circumstances

3. Greenhouse gas inventory

4. Policies and measures

5. Projections and the total effect of policies and measures

6. Vulnerability assessment, climate change impacts, and adaptation measures

7. Financial resources and transfer of technology

8. Research and systematic observations

9. Education, training and public participation

Annex A: Summary of emissions and removals from New Zealand's 2003 national inventory

Annex B: Supplementary information on Projections Modelling methodology

Annex C: Reporting under Kyoto Protocol Article 7.2

Annex D: Summary of Policies and Measures

Acknowledgements

Abbreviations and acronyms

References

New Zealand's Report on the Global Climate Observing System (GCOS)

New Zealand's Report on Demonstrable Progress under the Kyoto Protocol

1. Domestic measures

2. Trends in, and projections of, greenhouse gas emissions

3. How measures contribute to meeting commitments

4. Actions and programmes under Articles 10 and 11 (technology and other cooperation; financial resources)

7. Financial resources and transfer of technology

Contributions to the financial mechanism

The Global Environment Facility is the international entity entrusted with the operation of the financial mechanism of the UNFCCC. The Global Environment Facility distributes financial assistance associated with the major multilateral environment agreements on climate change, biodiversity, ozone layer, as well as activities relating to land degradation, chemicals and international waters. New Zealand contributed NZ$12.13 million to the third replenishment of the Global Environment Facility (GEF3), which covers the years 2002-2006. New Zealand is fulfilling its Article 4.3 commitments through its contribution to the Global Environment Facility, 4NC Table 31 provides details of New Zealand's annual contributions to the Global Environment Facility for the years 2001 to 2004.

Negotiations are under way on the fourth replenishment of the Global Environment Facility (GEF4) for the period 2006-2010 and are scheduled for completion in late 2005.

Actions to implement Articles 4.3, 4.4. and 4.5 of the UNFCCC

Articles 4.3, 4.4 and 4.5 of the UNFCCC relate to the commitments of developed country Parties (Annex II Parties) regarding financial resources and technology transfer to enable developing country Parties to implement the provisions of the UNFCCC, and for adaptation assistance.

New Zealand is particularly focused on helping to meet the concerns and needs of Pacific Island countries. Pacific Island countries are on the front line of climate change impacts - in some instances climate change is an issue of national survival - yet their contribution to the problem is negligible.

In 2001, New Zealand also joined with several other countries in a Political Declaration on Financial Support for Developing Countries. New Zealand's share of this voluntary commitment is NZ$5 million per year from 2005. The voluntary commitment comprises the proportion of funds from New Zealand's total Global Environment Facility contribution that is likely to be spent on climate change projects; the New Zealand Agency for International Development's climate change-related support in the Pacific; funding for lump sum contributions to one or more of the UNFCCC funds; and funding for ad hoc contributions towards projects which advance international action to address climate change.

New Zealand recognises the need to assist developing country Parties that are particularly vulnerable to the adverse effects of climate change in meeting the costs of adaptation (Article 4.4). For example, the New Zealand Agency for International Development 's draft environment policy, which will be used to guide the agency's decision-making, stresses the importance of assisting adaptation. 4NC Tables 33 to 36 contain details of financial contributions made in relation to adaptation.

New Zealand recognises its commitments under Article 4.5 to take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention.

New Zealand does this primarily through the work of the New Zealand Agency for International Development (NZAID). New Zealand also contributes through various Global Climate Observing System-related initiatives in the Pacific region; for example supporting initiatives to restore and upgrade the regional upper-air networks, produce a Pacific regional climate bulletin, recover historical climate data, and assist with capacity building in Pacific Island hydrological and meteorological services.

The transfer of environmentally sound technologies is, however, largely undertaken by the private sector. The New Zealand Government has a role in facilitating technology development in New Zealand, including through the Technology for New Zealand initiative and other technology-related initiatives such as the Research for Industry, and Grants for Private Sector Research and Development.

Financial resources provided through bilateral, regional, and other multilateral channels

The New Zealand Agency for International Development was established in 2002. It is semi-autonomous within the Ministry of Foreign Affairs and Trade, with a mandate focused on poverty elimination. The Agency's policy framework is being progressively developed. At the time of reporting this Fourth National Communication, the draft environment policy is under preparation. In its current form, the draft policy recognises the significance of climate change for poverty elimination, particularly in the small island developing states of the Pacific region which is the principal geographic focus of the New Zealand Agency for International Development. Research carried out for the preparation of this policy showed that managing the impacts of climate change (including integration into national sustainable development planning, capacity building, and implementing adaptation plans) is one of the Agency's Pacific Island partners' priorities. The final policy will guide the restructuring of its Pacific regional environment programme, including the Pacific Initiative for the Environment reported in New Zealand's Third National Communication.

Current support to climate change activities in the New Zealand Agency for International Development's programmes reflects:

• support to climate change programmes of Pacific regional organisations and multilateral organisations (refer 4NC Table 32)
• a number of bilateral country activities where New Zealand Agency for International Development engagement has been sought by partner governments (refer 4NC Tables 33 to 36)
• support to Pacific regional climate change policy processes (refer 4NC Table 37).

The environment policy will also guide future engagement and funding allocations. In the interim, the New Zealand Agency for International Development is assisting Pacific regional agencies in their development of regional policy, strategies, and partnership initiatives concerning climate change. Principal among these is the review and refinement of the Pacific Framework for Climate Change. The New Zealand Agency for International Development is funding this process, which will provide an umbrella framework for all Pacific priority actions on climate change. The New Zealand Agency for International Development and other donors anticipate that this will form the central framework for alignment of future climate change assistance. In particular New Zealand will look to the framework to guide future contributions under the voluntary commitment that was made in 2001. In October 2005, Pacific Forum leaders endorsed the Pacific Islands Framework for Action on Climate Change as a regional mechanism to support responses to climate change and related concerns for the period 2006-2015. They noted the need to develop and implement national action plans for climate change and related issues consistent with the framework and other regional frameworks (for example, the Pacific Regional Framework for Action for Building the Resilience of Nations and Communities to Disasters).

Pacific preparations for the 2002 World Summit on Sustainable Development included the identification of 14 regional priorities for achieving sustainable development by Pacific Island states. These were subsequently developed into Pacific umbrella Type 2 partnership initiatives and coordinated by regional agencies. Of the 14, four are climate change-related focusing on: adaptation, vulnerability, water and sanitation, and energy. Most of these are still in the process of development as funding mechanisms. The New Zealand Agency for International Development is committed to investigating all four for support and is currently assisting those on vulnerability and water and sanitation. Completion of the development of the adaptation initiative is anticipated in 2006/07.

The New Zealand Agency for International Development is also a major funder of the Pacific regional agencies, with the South Pacific Applied Geoscience Commission (SOPAC) and the Secretariat of the Pacific Environment Programme, in particular, having climate change responsibilities. The Agency is progressively moving to a programme-funding basis for all Pacific regional agencies. This will mean that agencies are free to allocate funding between programmes within their overall strategic plan. Donor funding is not monitored at a level that traces individual donor funds to specific activities. This is also the case for multilateral allocations, hence the figures in 4NC Table 32 are total allocations to agencies and incorporate, but are not exclusively, climate change expenditure.

Mitigation

The New Zealand Agency for International Development's main areas of engagement have been in energy and forestry. The main energy projects have been for comprehensive energy efficiency and use of renewables in Tokelau and the Niua outer islands of Tonga. Over this reporting period, the Agency has moved into the final phase of support to the Bukidnon plantation forestry project in the Philippines which has now begun its harvesting cycle. Apart from these large projects, the Agency's effort in both these sectors has been small scale.

Adaptation

In 2001-2004, most of the New Zealand Agency for International Development's support to adaptation has been around Pacific regional processes, planning, strategy, and initiatives development. New Zealand has also played an active role in UNFCCC negotiations supporting the needs of least developed countries and developing countries in respect of adaptation. The Agency anticipates committing a significant proportion of New Zealand's voluntary commitment to Pacific adaptation priorities. At the time of reporting the Pacific's regional umbrella initiative on adaptation is not yet operative. The Agency is, however, a partner in the Pacific umbrella partnership initiative on water and sanitation, in particular supporting climate forecasting and meteorological services training. It has also provided substantial financial assistance for the regionally developed Environmental Vulnerability Index. The Agency continues to support water and sanitation initiatives at a local scale. For many small island developing states, and in particular atoll countries, increasing rainfall variability is anticipated to exacerbate water supply difficulties putting a premium on water collection and storage infrastructure.

4NC Table 31: Financial contributions to the Global Environment Facility (GEF)

Notes:

1. "Contribution" is interpreted here as the combined total of New Zealand's encashments for the GEF Trust Fund; for 2001 and 2002 this equates to the sum of contributions made to GEF1 and GEF2, and for 2003 and 2004 the sum of contributions made to GEF1, GEF2 and GEF3. Contributions made to the GEF Trust Fund are not apportioned to specific areas of the GEF's work. GEF projects address six global environmental issues, of which climate change is one.

2. Contributions to the GEF Trust Fund are made in New Zealand Dollars.

3. Years in the table refer to GEF financial years (July to June).

4NC Table 32: Financial contributions to multilateral institutions and programmes

4NC Table 33: Bilateral and regional financial contributions related to the implementation of the Convention, 2001 (millions of NZ dollars)*

View the bilateral and regional financial contributions related to the implementation of the Convention, 2001 (large table).

4NC Table 34: Bilateral and regional financial contributions related to the implementation of the Convention, 2002 (millions of NZ dollars)*

View the bilateral and regional financial contributions related to the implementation of the Convention, 2002 (large table)

4NC Table 35: Bilateral and regional financial contributions related to the implementation of the Convention, 2003 (millions of NZ dollars)*

View the bilateral and regional financial contributions related to the implementation of the Convention, 2003 (large table)

4NC Table 36: Bilateral and regional financial contributions related to the implementation of the Convention, 2004 (millions of NZ dollars)*

View the bilateral and regional financial contributions related to the implementation of the Convention, 2004 (large table)

4NC Table 37: Description of selected projects or programmes that promised practicable steps to facilitate and/or finance the transfer of, or access to, environmentally-sound technologies