Read questions and answers about what lies ahead
How much is this going to cost?
GDP will be 1% lower than it would otherwise be if the Commission’s advice is adopted. The Commission reports that GDP forgone in the first three budget periods will amount to $34 billion, which is about 1% of total GDP during that period (2022 – 2035).
The economy is projected to grow on average by 1.88% per annum between 2020 and 2050 if we do not take policy action to meet the emissions targets. If we follow the Commission’s advice to meet the 2050 targets the economy would grow on average by 1.85% per annum over this time.
We have estimated the cumulative difference in GDP over the period 2020-2050 of meeting the 2050 emissions targets to be between $44 billion and $101 billion.
These numbers do not consider the risks to New Zealand’s reputation internationally that could result in loss of access to markets, or the loss of growth because of climate change.