A new paper by Motu Research shows how Aotearoa New Zealand could work with other countries to accelerate global climate progress, by funding offshore mitigation to help meet its 2030 target under the Paris Agreement.

The world is off track to prevent dangerous climate change. Changing course requires funding and other support for faster mitigation in developing countries. In Aotearoa New Zealand, from 2015 to 2021, both National- and Labour-led Governments deliberately pledged to deliver more ambitious 2030 Paris targets than were feasible domestically, with the intention that the difference is to be met by funding mitigation in other countries.

Successive Governments have not yet acted on this pledge and Aotearoa New Zealand is facing a substantial target gap. Motu Research’s new paper highlights that securing public support for sending mitigation funding offshore remains a critical barrier to Aotearoa New Zealand meeting its 2030 Paris target. Through stakeholder dialogue and interviews, the authors identified four competing mindsets that are paralysing progress: Dismissive Detractors, Carbon Colonialism, Domestically Driven, and Least-Cost Compliance. Each applies a narrow lens to what serves national interests.

“People’s current views are shaped by past experience of the Kyoto Protocol’s approach to offsetting, which had serious shortcomings,” says Catherine Leining, Motu Research Policy Fellow and co-author. “But the Paris Agreement lets governments innovate in how they work together to boost climate outcomes. By shifting to a mindset of Climate Cooperation, Aotearoa New Zealand could combine domestic climate action with funding for offshore mitigation, in ways that serve both national and global interests.”

Motu Research Affiliate and co-author Sasha Maher says, “If done with integrity, using the Paris Agreement’s cooperative approaches could help reduce global emissions, without displacing what must be done at home. Offshore climate mitigation is also about providing critical support for sustainable development in lower-income countries.”

Other countries have forged ahead with cooperative climate mitigation agreements, demonstrating how they can work in practice. To get started with offshore mitigation, the paper recommends the New Zealand Government make clear policy and funding commitments, adopt a portfolio approach, partner with other countries, start with pilot initiatives, and clarify the roles of the private sector and carbon markets.

“Cooperating with other countries to deliver on the Paris targets will enhance Aotearoa New Zealand’s credibility under multilateral and trade agreements, create new market opportunities, and improve global outcomes,” says Catherine Leining.

Aotearoa New Zealand is not alone in this effort. The findings from Motu Research will be of interest to other countries striving to enhance climate cooperation. Funded by the US-based Environmental Defense Fund, this research underscores the importance of international solidarity in protecting the climate for future generations.

This research will be discussed at an upcoming Motu Research Public Policy Seminar on Monday 21 October 2024 from 11am to 12:30pm.

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