Capital investment in Ināia Tonu Nei scenarios

Published 11 October 2022

We developed and modelled a number of economy-wide scenarios for our 2021 advice to government on New Zealand’s first three emissions budgets, Ināia tonu nei. We published a range of data on these scenarios to accompany our advice.

Government officials were interested in further information on the implications of meeting the emissions budgets for levels of capital investment across the economy.

To assist, we undertook additional analysis to estimate the annual capital investment required in several key areas of emissions reduction. For this, we assessed and compared two scenarios:

• The Current Policy Reference, representing a continuation of existing government policies;
• The Demonstration path, the core scenario underlying our recommended emissions budgets.

This analysis built on existing cost assumptions used and published with Ināia tonu nei, combining these with other scenario data to estimate total levels of capital expenditure.

We provided the results of our analysis to Treasury and Ministry for the Environment officials in a spreadsheet and summary note, which can be downloaded from the links on this page.