New Zealand Climate Change law for Financial firms

New Zealand recently introduced a bill on Climate Change for financial firms. The bill is the first of its kind in the world. New Zealand has fixed 2050 as the deadline to become carbon neutral.

Key Features of the Bill

• It will require the insurers, banks and investment managers to report the impacts of their funding on the effect of climate change.
• It will also force the financial firms to evaluate the companies they are lending in terms of environmental impacts.
• All the banks in New Zealand with total asset more than 1 billion New Zealand dollars (703 million USD) will now have to make disclosures about their asset management.
• The financial firms will now have to explain how they will manage climate related risks and opportunities.

Other New Zealand Legislations on Climate Change

The New Zealand Government has lately taken several climate changes measures to lower green house gas emissions in the country. Some of them are as follows:

• In 2019, the Climate Change Response Act, 2002 was amended. According to the amendment, New Zealand intended to implement climate change policies in accordance with the Paris Agreement.
• Carbon Neutral Government Programme was set up to accelerate the reduction of emissions within the public sector.
• New Zealand Green Investment Finance was launched to reduce Greenhouse gas emissions. The main objective of the finance is to accelerate funding of projects that have the potential to reduce emissions.

Nationally Determined Contributions of New Zealand

In 2015, New Zealand ratified the Paris Agreement. The Nationally Determined Contributions of New Zealand under the agreement are as follows:

• To reduce green house gas emissions by 30% below 2005 levels by 2030.

US Climate Change targets

More than three hundred investors and businesses have called on the Biden administration to set an ambitious climate change goal. They aim to cut US greenhouse gas emissions by at least 50% below 2005 levels. This is to be achieved by 2030.

Month: Current Affairs - April, 2021