THE BIG PICTURE: CLIMATE CHANGE - What lies ahead in 2021? May 2021 - Bell Gully
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THE BIG PICTURE: CLIMATE CHANGE What lies ahead in 2021? May 2021 W W W. B E L L G U L LY. C O M
Contents 1 Introduction — the tipping point 2 The New Zealand framework 3 What's coming this year? 4 The Climate Change Commission — Aotearoa is not on track 5 The Climate Change Commission — what transition looks like 6 NZ ETS: regular evolution and refinement 8 NZU auctions 9 Mandatory climate-related disclosure 10 Mandatory disclosure — picking up the pace 11 International pressure 12 Climate litigation on the rise 13 Climate litigation — key New Zealand cases 14 Climate litigation — key Australian cases 15 Fire and flood — the insurance risk 16 Managed Retreat — waiting and watching 17 Managed Retreat — high stakes 18 Sustainable finance 19 Sustainable finance — the guidance 20 Bell Gully’s climate change practice 21 Our team
Introduction — the tipping point
T
he changing climate and how the by 2060. The United States of America, one
world responds to it is the defining of the world’s three biggest emitters1, has
issue of this generation. Despite re-joined the Paris Agreement. Germany and
a global pandemic that has resulted in Mexico, along with Japan and Canada, have
countries closing their borders, an almost developed long term plans to decarbonise
complete cessation of international travel, their economies.
domestic lockdowns and significant business
Government declarations are laudable. But
and economic pressures, climate change
global emissions are still high and there is
has continued to be a key concern for
a significant lag time between emissions
governments and businesses alike across
and the point at which the impacts arising
the globe.
from those emissions are experienced by the
In the sixth year after the Paris Agreement global population. Transition action is now
was adopted in 2015, it is clear the transition what is urgently needed.
to a lower-carbon economy has begun.
Will it come? In New Zealand, at least, the
Since New Zealand declared its net-zero
conditions are finally emerging. We believe
carbon target at the end of 2019, through
upcoming mandatory financial reporting
reform of the Climate Change Response
on climate-related risks, in conjunction
Act 2002, many others have announced
with recommended emissions budgets
net-zero carbon targets for 2050, including
from He Pou a Rangi - the Climate Change
the European Union, Japan, Canada,
Commission, will prove the tipping point.
South Africa, and South Korea. China has
announced it is aiming for carbon neutrality
1 | INTRODUCTION
CLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
The New Zealand framework
I
n New Zealand, the Government has
been pushing through a multi-faceted He Waka Eke Noa – the Primary Sector Climate
framework aimed at targeting the Action Partnership – released its first edition of
transition to a lower-carbon economy. By
its Greenhouse Gases: Farm Planning Guidance
the end of 2020:
providing a guide for farmers and growers The NZ ETS was reformed, with changes
to help them measure, manage and reduce introduced to the Climate Change Response Act
greenhouse gas emissions. 2002 (CCRA) to provide for the auctioning of
NZUs, a cap on emissions, reform to the forestry-
related regimes under the NZ ETS, and the
The first National Climate Change Risk removal of a fixed-price option for meeting one’s
Report was released with work underway compliance obligations.
on the nation’s first National Climate
Change Adaptation Plan. The Government established the independent
THE Climate Change Commission, with seven appointed
commissioners led by Dr Rod Carr.
The Minister for Climate Change asked the FRAMEWORK
Climate Change Commission to proceed
with recommendations on the first three SO FAR The Government announced its intention to
emissions budgets, on the policy direction for introduce a mandatory financial disclosure
the Government’s first emissions reduction regime on climate-related risks to be in effect
plan, reviewing New Zealand’s first nationally from 2023 (at the earliest) to capture 90% of
determined contribution and advising on assets under management in New Zealand.
the eventual reductions needed in biogenic
methane emissions. At this point in time the New Zealand under the Paris Agreement. Consultation on
Emissions Trading Scheme remains the central the report has seen the pace and manner
tool for mitigation, but the combination of in which the transition is achieved hotly
The Government considered the Resource mandatory reporting and national emission contested by commentators. But there
Management’s Review Panel’s report budgets should prove a potent addition. seems to be little debate that a transition to
on resource management reforms and a lower-carbon economy is needed. This, in
In its draft report, the Climate Change
proposed to implement a Climate Change itself, is a significant shift in a relatively small
Commission has said that now is the time
Adaptation Act (CCA). number of years.
for action if New Zealand is to play its part
2 | THE NEW ZEALAND FRAMEWORK
CLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
What's coming this year?
E
xpect 2021 to be a year in which action plans. This will take place amid
businesses and local government the next wave of climate change-related
engage with and shore up their regulation and policies from Government to
understanding of their own climate-related provide sufficient incentive and certainty for
risks, and develop their adaptation and investment and transformation planning.
NOV 2019 AUG 2020 JAN 2021 MAR 2021 END-2021 2023
Zero Carbon Act First National Climate Change Consultation on Minister sets first Earliest date at which
passed into law Climate Change Risk Commission releases Climate Change three 5-yearly mandatory climate-
Assessment released its draft advice report Commission’s emissions budgets. related risk reporting
on reducing emissions draft advice closed. COP-26 held – potential would be required
and first proposed First auction of that New Zealand will
three 5-yearly emissions NZUs held propose a new NDC
budgets
JUN 2020 SEP 2020 FEB 2021 MAY 2021 2022
NZ ETS reforms passed Government announces Government announces Climate Change Commission First National Adaptation
by Parliament (including plans for mandatory plans for RMA reforms, provides final advice Plan to be published by
enabling a cap on climate-related risk including a new Climate to Minister on 5-yearly August 2022
emissions) reporting Change Adaptation Act emissions budgets, and on
change needed to nationally
determined contribution
(NDC) under Paris Agreement
3 | WHAT'S COMING THIS YEAR?
CLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
The Climate Change Commission — Aotearoa is not on track
T
he Climate Change Commission New Zealand’s international The clock is ticking: The CCRA sets out the process
released its Draft Advice to the commitment for considering and responding to the Climate Change
Government for public consultation If Aotearoa is to play its part to limit global Commission's advice and recommendations on emissions
on 31 January 2021. By the close of its warming to 1.5°C above pre-industrialised budgets, imposing a number of deadlines.
consultation period at the end of March, levels, our commitment to reduce emissions
the commission had received more than
15,500 submissions. It is now working its
needs to change from 30%, to 31 May 2021
more than 35% below 2005 Final package of advice due to the
way through this wave of feedback in order levels by 2030. This goes Government
to prepare and present its final advice to further than the reduction
Government by the end of May. to N ew Ze a l a n d ’s
All eyes will be on that final advice, and domestic emissions
Within 10
the Government’s reaction, because the budgets proposed by the working days
Commission’s draft advice came with a Commission. Minister of Climate Change must
table the advice in Parliament
warning. In the meantime, the
G ove r n m e n t a l re a d y
Current government appears to be proceeding
with a number of climate
28 June 2021
policies do not put actions consistent with
Climate Change Commission must
release the advice publicly
Aotearoa on track to the Draft Advice, with its
meet our recommended recent Climate Action
Announcement on 8 April
emissions budgets and 2021 banning new low and
31 Dec 2021
The Government must have set
the 2050 targets.” medium temperature coal- the first three emissions budgets
fired boilers, the provision (to 2035) and release its first
He Pou a Rangi - the Climate of a Decarbonising Industry emissions reduction plan2
Change Commission Fund to help the private
2021 Draft Advice sector to transition away
from fossil fuels, and funding
the transition of several public
From 2022
The Commission to begin a new work
sector organisations (schools,
programme to monitor implementation
district health boards and tertiary of its advice, including tracking against
education institutes) from fossil-fuel the 2050 net zero target
options for the generation of process heat.
4 | THE CLIMATE CHANGE COMMISSION — AOTEAROA IS NOT ON TRACK
CLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
The Climate Change Commission — what transition looks like
T
he Climate Change Commission’s draft
TR AN S ITI O N BY S EC TO R 4
advice included proposed reductions
to New Zealand’s next three five- TRANSPORT LAND USE
year emissions budgets, the climate action
it considers necessary to reduce emissions
223 • An integrated national • Government needs a cohesive strategy that
Mt C02-e transport network to reduce includes water, biodiversity and climate
to meet those budgets, and whether private vehicle travel
New Zealand’s international Nationally 2030 - 2035 • Farmers need to make changes to lower
Determined Contribution is sufficient. • EVs widely adopted with emissions, while maintaining or improving
Government support and productivity
incentives
286
• Policy support for greater farming
• Freight moved to rail and efficiency – reduced animal numbers
shipping and better animal, pasture and feed
management, plus adapted and improved
PROPOSED • Use of low carbon fuels –
Mt C02-e hydrogen and biofuels – for
land use (lower emissions practices and
DRAFT technologies)
EMISSIONS heavy trucks, trains, planes
BUDGETS3 2026 - 2030 and ships • Forestry plays a role but is not the sole
solution
• Pine has an important role to reach
Mt CO2-e = metric tons HEAT, INDUSTRY the 2050 target, provides material for
271
of carbon dioxide equivalent & POWER bioenergy and building
• End coal use • Incentivise native forests for long-term
carbon sinks and wider biodiversity and
Mt C02-e • Maximise the use of erosion control benefits
electricity, including for EVs
2022 - 2025 and process heat • Government to better understand potential
of existing forests, small tree blocks,
• More solar, wind and wetlands and soils in storing carbon
geothermal required
• Use low emissions WASTE
Aotearoa will not meet its targets without strong technologies and prioritise • Strengthened product stewardship
and decisive action now to drive low emissions energy efficiency when
technologies and behaviour change across all sectors.” building homes • Commitment to resource recovery and
reuse
• Over the longer-term, reduce
He Pou a Rangi - the Climate Change Commission • Capture methane from remaining landfill
natural gas use in homes and
2021 Draft Advice
businesses waste
5 | CLIMATE CHANGE COMMISSION — WHAT TRANSITION LOOKS LIKE
CLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
NZ ETS: regular evolution and refinement
T
he New Zealand Emissions Trading control settings on an annual basis. This is the
Scheme remains one of the first year these settings will be updated. The
ANNUAL AUCTION VOLUMES UPDATE FOR EACH OPTION
Government’s key policy responses challenge is this regulatory process is being
to climate change. Recent amendments to carried out in parallel to the finalisation of the Two options for reduced annual auction NZU volumes5
the CCRA, and pending regulatory change, Climate Change Commission’s Advice and the
OPTION 2021 2022 2023 2024 2025 2026 22-26
demonstrate the Government’s desire to Government’s consideration and response to TOTAL
continue to evolve and refine the NZ ETS the recommended emissions budget settings
STATUS QUO 19.0 19.3 18.6 17.2 15.5
settings, to ensure emissions pricing plays and other policy recommendations in that
its critical part within a complementary set Advice. OPTION 1 19.3 18.6 16.4 16.4 14.0 84.7
of policies and measures to drive the move
For now, the Government is proposing to OPTION 2
to a low-emissions economy. 19.5 18.3 16.4 16.4 14.0 84.6
continue the zero limit on the importation
and use of international emissions units in the
Material amendments NZ ETS. It is also seeking feedback, based
The Government is currently consulting on on the Climate Change Commission’s draft PRICE FLOOR6
what it refers to as technical changes to the recommendations, on changes to the price Materially increasing the price floor for nzus in the government's auctions
emissions trading scheme and synthetic and NZU volume settings for auctioning,
gas levy regulations. However, while these highlighted in the table. SETTING 2021 2022 2023 2024 2025 2026
changes may be technical in nature, the
These proposed options seek to marginally
Ministry for the Environment’s Consultation STATUS QUO $20.00 $20.40 $20.81 $21.22 $21.65 $22.08
reduce the volume of NZUs released into
on the 2021 Proposed NZ ETS Changes
the market by the Government and to
points out that a number of the changes COMMISSION DRAFT
retain strong emissions pricing for such $30.00 $32.10 $34.35 $36.75 $39.32
are significant indeed for those involved in ADVICE
auctions. Combined, the options related
the NZ ETS.
to the Climate Change Commission’s draft
Under 2019 and 2020 amendments to the recommendations more strongly encourage
CCRA, the Government is required to consider transition to a low-carbon economy. CCR TRIGGER PRICE7
and update the unit limit and auction price Materially increasing the cost containment reserve trigger price
TRIGGER PRICE 2021 2022 2023 2024 2025 2026
CURRENT $50.00 $51.00 $52.02 $53.06 $54.12 $55.20
COMMISSION DRAFT
$70.00 $78.40 $87.81 $98.34 $110.15
ADVICE
6 | NZ ETS: REGULAR EVOLUTION AND REFINEMENT
CLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
NZ ETS: regular evolution and refinement
New rules will impact
SGG LEVY INDUSTRIAL the NZUs a forester can earn
Update the schedule of goods ALLOCATION Significant evolution of the post-1989 forestry regime was
agreed with the passing of the Climate Change (Emissions
covered by the SGG levy Update the electricity Trading Scheme Reform) Amendment Act 2020. The new
to capture imported goods allocation factor used in averaging accounting and permanent forestry regimes are
containing currently unlevied industrial allocation to more due to come into effect on 1 January 2023. The Government
accurately reflect wholesale expects this will lead to around 78,000 hectares of new
SGG blends.
commercial forests being planted between 2019 and 2027
electricity pricing.
– critical to enable New Zealand to meet its international
emission reduction targets for 2030 and 2050.
A number of
the other proposed The forestry regulations containing much of the detail
amendments or options underpinning the carbon benefits and risks are currently
being considered will being developed, with a number of the proposed settings
being the subject of consultation – see the Ministry for Primary
directly affect (and likely PROPOSED
Industry’s Additional proposed amendments to the Climate
increase) some organisations' AMENDMENTS Change Forestry Sector Regulations 2008 which closed
compliance liability under WASTE on 9 April.
the NZ ETS and for
Improve the
the importation of The pending regulations will set out the proposed age band,
methodology
synthetic gas.8 average forest age and multiple rotation frameworks which
that accounts for directly affect the amount of NZUs a forest will earn – or
waste in the NZ ETS alternatively, will have to be surrendered. They also set out
– these amendments the rules around when a party will be eligible for relief from
DEFs present options to manage surrender liability, for land subject to a temporary adverse
Update default emissions factors the increasing risks to closed event. The Government expects these settings will, over
landfills from flooding and time, impact the operational management of such forests.
(DEFs) for waste and natural gas
erosion and the need for some The working theory is that the increasing carbon price and
fields, and update other DEFs
such landfills to be excavated proposed settings around age, age band and rotations will on
and reference data to reflect new
and waste disposed of one hand disincentivise short rotations for plantation forests,
global warming potentials. elsewhere to address these risks. and on the other, encourage the establishment of long-term
carbon sinks under the permanent forestry regime.
7 | NZ ETS: REGULAR EVOLUTION AND REFINEMENT
CLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
NZU auctions
The NZU auction system is up and running, with the full quantum
of NZUs selling in the first auction at a relatively modest price.
T
he Government marked trade at NZ$38.70, but higher than introduced in June 2020 under
a n o t h e r s i g n i fi c a n t the Government’s fixed price option the Climate Change Response
milestone in the history of of NZ$35, foreshadowing a strong (Emissions Trading Reform)
New Zealand’s Emissions Trading appetite for exercising the fixed Amendment Act. Auctions have
Scheme (NZ ETS) on the morning price option among those able to been introduced to align the supply
of 17 March with the first auction do so while it remains available. of emissions units in the NZ ETS
of New Zealand units (NZUs). At with New Zealand’s emissions
There were a total of 40 participants
9am, Minister for Climate Change targets and five-yearly budgets.
in the auction with 30 of those
James Shaw rang the “NZX bell” The supply of NZUs up for auction
bidders successful on the day.
in Wellington, to formally open is intended to reduce over time to
Feedback on the first auction for
the bidding window for the highly assist in achieving the budgeted
NZUs highlighted the high level
anticipated auction. levels.
of interest and involvement from
The auction results saw a strong major sectors of New Zealand For more information on foundation
uptake from key sectors of the including manufacturing, transport and operation of NZU auctions
New Zealand economy, with all and forestry. It was considered a see: Planning to purchase auction
4.75 million NZUs offered sold success. NZUs? Simulated test auctions to
at a clearing price of NZ$36. The run this month.
Auctioning of NZUs makes up one
NZ$36 clearing price sits below the
of a suite of reforms to the ETS
Carbon Market’s last pre-auction
8 | NZU AUCTIONSCLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Mandatory climate-related disclosure
N
ew Zealand has become the first The new legislation is framed as a disclosure
country in the world to introduce regime. But its ultimate purpose is to promote
legislation requiring mandatory Overseas incorporated a more efficient allocation of capital in light
climate-risk reporting for the financial GOALS organisations will also of the potential impacts of climate change,
sector. The Financial Sector (Climate-related to help with the transition to a sustainable
Disclosures and Other Matters) Amendment OF MANDATORY be required to make
and low-emissions economy, and to ensure
Bill was introduced to Parliament in April, CLIMATE-RELATED disclosures if their that companies consider and understand
and is now subject to Select Committee
REPORTING New Zealand business the financial impacts of climate-related
consultation. The Financial Climate-related exceeds these thresholds risks and opportunities. This reflects the
Disclosures Bill outlines the reporting
Taskforce on Climate Related Financial
required by ‘climate reporting entities’,
Disclosures (TCFD’s) view that climate-
which represent the majority of assets under
related disclosures will promote a greater
management in New Zealand. They include:
understanding of the financial implications
• All registered banks, credit DISCLOSE DEMONSTRATE associated with climate change and potential
unions, and building societies Ensure the climate reporting Help climate reporting climate-resilient solutions, opportunities and
with total assets of more than entities disclose clear, entities better demonstrate business models for companies.
NZ$1 billion comparable, and consistent responsibility and foresight in
information about the risks their consideration of climate
• All managers of registered and opportunities presented issues
investment schemes with greater by climate change
than NZ$1 billion in total assets
under management
• All licensed insurers with greater
than NZ$1 billion in total assets CONSIDER TRANSITION
under management or annual Ensure that the effects of Lead to more efficient
premium income greater than climate change are routinely allocation of capital, and
NZ$250 million considered in business, help smooth the transition
investment, lending and to a more sustainable, low
• All equity and debt issuers listed insurance underwriting emissions economy
on the NZX decisions
9 | MANDATORY CLIMATE-RELATED DISCLOSURECLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Mandatory disclosures — picking up the pace
The new mandatory climate-related disclosure The NZX Corporate Governance
regime is one of a trio of developments that, Code, updated in December
taken together, are expected to drive real 2020, recommends that
NZX
change towards a low-emissions economy. issuers should provide non-
The others are the draft advice issued
GUIDANCE
financial disclosures at least
by the Climate Change Commission GOVERNANCE STRATEGY annually, including considering
which urges the Government to pick environmental, economic and
up the pace to comply with the Zero
CLIMATE social sustainability factors and prices.
Carbon Act's target of achieving net REPORTING
zero emissions by 2050, and the ENTITIES The NZX also has a specific guidance note on ESG
proposed changes to the resource MONITOR, ASSESS &
ADDRESS CLIMATE-
reporting that addresses the significance of climate
management legislation, which will
involve the introduction of a new
RELATED RISKS
REGULATORS change reporting for issuers, and notes that such
reporting informs the over-arching long-term
Climate Change Adaptation Act. OFFER
RISK METRICS strategic view of business.
Mandatory reporting of climate-related MANAGEMENT & TARGETS GUIDANCE
risks will be carried out through climate Both the NZX and
The FMA states, in guidance
statements consistent with yet-to-be- the FMA released
updated in December 2020, that
developed climate standards, and audited guidance on
by approved climate-related disclosure climate-related FMA in line with its role as a financial
assurance bodies. reporting and markets conduct regulator, it
GUIDANCE
disclosure before supports the transition to an
The reporting standards will be issued next year, climate reporting entities may integrated financial system
the release of the
by the XRB, which will align with the need to maintain records of the information Financial Climate- that considers non-financial
recommendations made by the TCFD (widely required to be disclosed. related Disclosures risks (including climate-related risks). The FMA
accepted as international best practice for
The Financial Climate-related Disclosures Bill. This guidance notes that it has a focus on encouraging boards
climate-related financial reporting). In line
Bill takes a comply-or-explain approach to continues to apply. and directors to identify, consider and adequately
with the TCFD's recommendations, the
disclosures. Climate reporting entities must disclose climate risk (including through TCFD /
mandatory climate-related disclosures are
either comply with the applicable reporting mandatory climate-related disclosure).
likely to focus on four core areas of business
standards, or if not, explain why not. Failure
operations for climate reporting entities.
to comply could attract a range of penalties,
In a speech in February this year, FMA CEO Rob
If the Financial Climate-related Disclosures ranging from fines of up to NZ$50,000 for
Everett stated that the FMA is working together
Bill is passed by Parliament, climate reporting infringement offences, to NZ$500,000 for
entities will be required to make disclosures individuals or NZ$2.5 million for reporting
with XRB and other government agencies to
for their financial years beginning in 2022, entities for more serious breaches. Individuals prepare for the new regime on climate-related
with the first climate statements expected to also face the possibility of imprisonment for financial disclosures, as the relevant regulator for
be delivered in 2023. As a result, from early a term not exceeding five years. that area.
10 | MANDATORY DISCLOSURES — PICKING UP THE PACECLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
International pressure
G
lobally we are seeing an increase • The biggest Nordic bank, Nordea AB, and align its financed emissions at a Closer to home 2020 saw stakeholder-
in shareholder, investor and funder said in March that 140 of its funds would portfolio level to net zero by 2050 initiated climate change litigation in New
pressure for businesses to disclose tighten requirements around fossil fuel or sooner. The resolution set out the Zealand seeking court-orders against a
their climate-related risks, along with climate companies10 and would only invest in next phase, including working with number of New Zealand businesses to
action or transition plans to reduce or remove companies on a “green transition path”. customers to support their transition – reduce emissions activity. While the court
their business exposure to those risks. In Most of Nordea’s funds – over 200 in and publishing a policy by the end of didn’t support the primary action in this
March, Bloomberg Green reported on four total, representing 120 billion euros of the year to phase out financing of coal- case, similar cases in neighbouring Australia
key developments across the EU in just investment – are now aligned with the fired power and thermal coal mining resulted in settlements that have seen the
one week9 as businesses acted to reduce stricter fossil-related restrictions. in the EU and OECD markets by 2030, adoption of more transparent climate-related
exposure to climate risk and regulation was and in all other markets by 2040. risk reporting and climate action plans.
• The largest French insurer, Axa SA, set
introduced to increase transparency on
a precedent for the global insurance • The EU introduced new rules to counter As we head into COP26 in November in
climate risk. On the face of it, none of these
industry. Axa SA has dropped RWE ‘greenwashing’ with its Sustainable Glasgow, Scotland, with a key focus on
decisions reduce greenhouse-gas emissions.
AG, one of Europe’s biggest coal mine Finance Disclosure Regulation climate finance, there is an expectation
But together, they demonstrate that Europe’s
operators, as its client because of taking effect on March 1013. It said more governments, corporates and
largest financial institutions appear to be
RWE’s reliance on coal11. Globally coal the regulation is aimed at triggering investors around the world will announce
serious about fighting climate change.
use for generating electricity must changes in behaviour in the financial new initiatives to address climate risks and
fall significantly to help achieve Paris sector, discouraging greenwashing, and responding to climate change. Whether
Agreement targets. promoting responsible and sustainable these announcements are merely rhetoric
investments. or give rise to real emission reductions
• HSBC Holdings Plc tabled a resolution
is yet to be seen. It will likely depend
on climate change12 at its annual
on the level of regulatory requirements
shareholder meeting after a number of
and associated stakeholder pressure for
shareholders proposed to table their
emissions transparency and compliance, risk
own climate change resolution. HSBC
disclosures, adaptation, and carbon retreat.
had already set out a goal last year
Real reduction will also hinge on the climate
to reduce emissions in its operations
finance, carbon and insurance price signals
and supply chain to net zero by 2030,
necessary for the balance sheet decisions
that will enable the change required.
11 | INTERNATIONAL PRESSURECLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Climate litigation on the rise
CLIMATE LITIGATION SINCE 2017
654
CASES IN
1200
CASES IN
THE U.S. THE U.S.
884 24 1550 38
230 350
CASES COUNTRIES CASES COUNTRIES
CASES IN OTHER CASES IN OTHER
COUNTRIES COUNTRIES
1550
A
cross the media and academia, it’s
being described as ‘climate change
lawfare’. In the past three years,
CLIMATE LITIGATION CASES WORLDWIDE IN 2020
the number of climate litigation cases has
nearly doubled worldwide, to reach 1,550
cases across 38 countries, according to the
United Nations Environment Programme14.
Globally, the courts are increasingly grappling
with plaintiffs seeking faster action on climate
change or rulings on particular local impacts.
12 | CLIMATE LITIGATION ON THE RISECLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Climate litigation — key New Zealand cases
I n New Zealand, a trio of recent
cases stand out for their implications
for government and businesses.
Hauraki Coromandel
Climate Action
Inc v Thames-
Coromandel District
Smith v Fonterra Council (2020)
T
Co-operative he High Court quashed a
Group Limited and
decision by the Thames- All Aboard Aotearoa
Coromandel District Council
others (2020) not to approve the mayor signing Inc v Waka
the Local Government Leaders’ Kotahi (2021)
S
even large domestic emitters Climate Change Declaration - which
A
faced a claim they had been she viewed as a potentially binding coalition of climate and transport
negligent or breached other document, although its originator advocacy groups applied in
legal duties by emitting greenhouse Local Government New Zealand the High Court for the judicial
gases, and seeking orders requiring did not. The case demonstrates that review of decisions by Waka Kotahi/NZ
them to achieve net zero carbon decisions by public bodies regarding Transport Agency and the Government
emissions by 2030. In the High Court, climate change are likely to be to fund and build the Mill Road roading
two of the three causes of action were considered significant decisions and, project. The group, incorporated under
struck out, but the Court was unwilling in certain contexts, can be the subject the name All Aboard Aotearoa, is made
to strike out the prospect of a novel of close judicial scrutiny. The case also up of Generation Zero, Lawyers for
tortious duty of care (though noting makes clear that decisions based on Climate Action, Bike Auckland, Women
such a claim faced significant hurdles). misinformation or a blanket denial of in Urbanism, Movement and Greenpeace
An appeal was heard in February and climate change may well be considered and seeks to decarbonise transport in
judgment is awaited. unreasonable by the Courts. Aotearoa by 2030.
13 | CLIMATE LITIGATION — KEY NEW ZEALAND CASESCLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Climate litigation — key Australian cases
Internationally, while the acceleration
in cases is most evident in the U.S.,
there have been two significant
decisions for New Zealand businesses
and directors out of Australia.
McVeigh v Retail
Employees
Superannuation
Abrahams v Trust Pty (2020)
CORPORATE
T
Commonwealth his claim was brought by a
beneficiary (McVeigh) against a GOVERNANCE THE
Bank of Australia superannuation scheme trustee NEXT FOCUS?
(2017) (REST), alleging that REST breached
Local directors eyeing international
its duties to act with care, skill and
T
wo shareholders brought a diligence, act in the best interests of climate cases that seek to hold
claim against CBA for failing to the beneficiaries, and exercise due companies to account through
address climate change risks in diligence, because it had not carried corporate governance and company law
its 2016 annual report. They alleged out an assessment of climate change should note a thorough exploration of
CBA breached obligations under the risks for the superannuation fund. It the key concepts in a 2019 paper15 by
Corporations Act to give a true and was settled in November 2020, at Chief Justice Helen Winkelmann and
fair view of the financial position and which time REST acknowledged the two judges of the Supreme Court of
performance of the company. They position of the Task Force on Climate- New Zealand, Susan Glazebrook and
dropped the case after CBA changed related Financial Disclosures (TCFD) Ellen France. That paper, Climate Change
its 2017 annual report to include that climate change is a material, and the Law, highlights corporate
an acknowledgement that climate direct and current financial risk to the governance as an area of potential
change posed a significant risk to the superannuation fund across many risk development in which directors’ duties
bank’s operations, and promised to categories. REST committed to taking may become a pathway through which
undertake climate change scenario further steps to manage and disclose companies are required to consider and
analysis on its business. climate-related risks. address climate change.
14 | CLIMATE LITIGATION — KEY AUSTRALIAN CASESCLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Fire and flood — the insurance risk
Private
or public
Corporate
I
securities or
nsuring climate-related risks is becoming fraud claims governance
harder and more expensive. As a group, Challenges relating to actions relating
to decisions disclosures made to management of
insurers already have a sharp focus on the to investors
whether to company assets or
increased risks arising from climate change.
indemnify or pension funds in light
The Insurance Council of New Zealand has defend, and of known climate
been reported as welcoming the pending others risk
mandatory climate change reporting on the
basis that is it very important for insurers
to be able to identify the extent of their Efforts
climate risk exposures16. In New Zealand and to compel Greater
Actions costs for
Australia, insurers are influenced by recent action or
experience with the impact of changing
against individual
directors and
DIRECT disclosure of defending lawsuits
information relating • As an increasing
weather patterns, ranging from bushfires to
flooding. Reinsurers’ appetite for risk in this
officers for failure to
properly address
IMPACTS to methods for proportion of losses are
addressing from extreme weather
part of the world will also play a material part climate risk
climate risk insured
in the availability, and cost, of cover for those
• As compensation is
exposed to climate risks.
sought for harms
A particular focus in New Zealand, with over resulting from the
15,000 kilometres of coastline, is sea level failure to adapt
rise. A research report released late last Earlier this year, the United Nations
year for the Deep South National Science Environment Programme, together with a
Challenge, Insurance Retreat, found homes group of 22 leading insurers and reinsurers
with a 1% probability of coastal inundation released guidance for the insurance industry INDIRECT Higher
could face a partial insurance retreat around identifying and disclosing the impact litigation
from 2030, with full retreat for at least of climate change19. The report highlights IMPACTS frequency
10,000 properties in Auckland, Wellington, the complexity of the challenge facing
Christchurch and Dunedin considered likely the sector. While it identified that insurers
by 205017. In response, the Insurance Council are comfortable assessing physical risk,
of New Zealand told media it expected the report found they had not yet placed
companies would keep covering existing significant focus on litigation risks. Those
Source: United Nations Environment Programme - Insuring the Climate Transition
customers – at higher premiums and excesses risks may impact the companies themselves,
– but might decline new customers in risky their products and their insured clients.
places18.
15 | FIRE AND FLOOD — THE INSURANCE RISKCLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Managed retreat — waiting and watching
N
ew legislation to address managed Some NZ$14 billion of local government
A national adaptation fund to finance retreat and climate change assets alone are at risk from estimated sea
pre-emptive adaptation and risk- adaptation is in development. While level rise23.
the legislation’s structure can be anticipated,
reduction measures But managed retreat is a complex and often
little is known about how it could be
fraught area. There will be many differences
implemented as yet. With significant policy
of opinion on how risk is best managed – and
work still needed and the Government
who should pay the cost.
keeping its cards close, we look at what can
Land acquisition be learned from real-world examples for an For a definitive answer on how the
powers for central and indication of what might lie ahead. Government proposes to implement the
local government Panel’s recommendations in practice, we
A national approach will have to wait until the CCA and NBA are
introduced into Parliament. Climate Change
The Government will introduce the new
Minister James Shaw has acknowledged that
legislation as part of a wider package of
significant policy work is still required before
resource management reforms announced
that can happen24, and has been reluctant to
Principles-based in February 2021 following the release of the give any indication on a preferred view for
RECOMMENDATIONS
compensation Resource Management Review Panel's report fear of influencing market and landowner
FOR THE last year.
for affected behaviour25.
CLIMATE CHANGE
landowners If the Panel’s recommendations are But with managed retreat already occurring,
ADAPTATION ACT
implemented, the new Climate Change it is possible to draw on local and international
Adaptation Act (CCA) will provide a national- examples to anticipate how the CCA might
level approach to managed retreat. take shape. Real-world managed retreat
National direction under suggests a potential package of mechanisms
the Natural and Built ranging from targeted rates to fund adaptation
High stakes solutions26, to rolling easements to roll-back
Environments Act (NBA)
A robust approach to managing climate- coastal access in line with sea level rise27.
to extinguish existing land
related inundation is necessary. With 75% Overseas, local authorities have been given
uses and consented
of the New Zealand population living the power to convert private coastal land
within 10km of the coast21, over 10,000 from freehold to leasehold – essentially
coastal properties in Auckland, Wellington, giving owners an end date to their legal right
Economic instuments Christchurch and Dunedin are at risk of full to remain on the coast28. In Matatā on New
to incentivise changes insurance retreat by 205022. Zealand's east coast, a local council is using
in land use20 existing planning rules to extinguish existing
use rights, as envisaged in the proposed NBA.
16 | MANAGED RETREAT — WAITING AND WATCHINGCLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Managed retreat — high stakes
Case study: Matatā — Bay of Plenty29
I
n May 2005, heavy rainfall flooded The Whakatāne District Council use rights of 21 homeowners by the the plan changes were approved by
the Awatarariki Stream causing calculated that the return period for a end of March 2021, and to prohibit all an independent hearings panel and
300,000m2 of rock, wooden debris similar debris flow was 40-80 years, and future residential development for an all but one of 21 homeowners settled
and mud to flow through the Matatā that the only viable option to prevent additional 24 properties. A $15 million with the Council before their appeal
peninsula township in the western Bay an unacceptable fatality risk was to compensation fund was separately in the Environment Court. The Court
of Plenty. An estimated NZ$20 million implement rapid managed retreat from established to purchase the 21 ruled that the last family could remain
of losses resulted, with 27 homes the most affected area. properties at current market value, with in their home for one more year, until
destroyed and 87 other properties no discount for the known hazard risk. March 2022, subject to strict conditions
As a result, the Council introduced two
damaged. to protect their health and safety.
plan changes to extinguish the existing Despite opposition from residents,
Next steps
The CCA is expected to be
developed in parallel with the NBA
and the Strategic Planning Act (SPA)
throughout the course of this year30.
Engagement with iwi/Māori and local
government will occur in early 2021 and
public consultation at the end of 202131.
A bill will then be introduced alongside
the NBA and SPA by December 2021,
and will go through a full select
committee process.
17 | MANAGED RETREAT — HIGH STAKESCLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Sustainable finance
S
ustainable financing is on the rise in
New Zealand’s loan and bond markets.
As at March 2021 NZ$2.4 billion of
green bonds are listed on the NZX32 - but Borrower commits to
with global cumulative green bond issuance use proceeds to finance
tipping over US$1 trillion in December 202033, GREEN or refinance sustainable
there’s clear scope for growth.
assets and activities
Climate change is of course a key driver of
this trend, but there are also other forces in
operation, including corporate sustainability
strategies reflecting social and reputational
pressures. Sustainable finance allows
corporates to align their financing with those No restriction on use of
strategies and pressures, and meet demands proceeds, but cost of
from investors with environmental social SUSTAINABILITY-LINKED funding tied to
governance (ESG) mandates. benchmarked
A range of sustainable financing products
sustainability performance
have developed in New Zealand, the
most prominent being “green” bonds and
“sustainability-linked” loans.
The dramatic rise in issuance of green and
sustainability-linked debt products both
in New Zealand and globally has attracted
attention, and there have been some
notable developments in New Zealand and
internationally over the past year.
18 | SUSTAINABLE FINANCECLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Sustainable finance — the guidance
The guidance
Sustainability Linked Loan The FMA has also announced its view that green bond
should help to
Principles issuances are not within the “same class” as existing
ensure consistency
The APLMA, LMA and LSTA vanilla corporate bonds for the purposes of the “same and transparency are
together published Sustainability class exclusion” which provides relief from disclosure maintained in the green
Linked Loan Principles (together requirements under the Financial Markets Conduct Act and sustainability-linked
with guidance), which are 2013. Accordingly, additional disclosures are required loan and bond markets
voluntary guidelines designed in relation to new issuances of retail green bonds in as they develop in
New Zealand (other than in certain circumstances). New Zealand
to preserve the integrity of the
sustainability-linked loan market
REGULATORY
MAY 2020 & INDUSTRY Trends
GUIDANCE A developing European trend is the climate-linked bond (an AU$140m 8-year
A good range has been incorporation of sustainability features into bond that paid a fixed coupon plus a return
published internationally the leveraged loan market, most notably the tied to the performance of a “forward-
and in New Zealand incorporation of pricing ratchets that are tied looking” climate transition index). Our
Green Loan Principles
The APLMA, LMA and LSTA to the ability to meet (or failure to meet) expectation is that we will start to see more
updated their Green Loan prescribed targets and bespoke reporting of this type of product here, particularly
Principles (together with guidance), requirements to audit that performance. with New Zealand emissions budgets and
which provides a voluntary With pressure on both financial institutions targets seeking to drive transition climate
framework of market standards to Disclosure framework for and private equity sponsors to incorporate action and the pending mandatory obligation
promote consistency in the green integrated financial products green and sustainability based processes into for financial climate-related risk disclosures.
loan market. credit and investment analysis, along with
This publication by the FMA
FEBRUARY 2021 is for issuers of financial the increasing demand from investors for Looking ahead
products that incorporate ESG linked products (both debt and equity),
With demand for ESG linked products
non-financial factors, including we expect local private equity sponsors will
continuing to grow, and increased scrutiny
environmental, social and draw upon the European experience and look
Sustainability-Linked Bond from regulators and investors to quantify
Principles and Social Bond human capital impacts. to the sustainability-linked loan market as
and disclose ESG risks, we expect the
Principles a way to align pricing incentives and ESG
Its aim is to ensure investors green and sustainability-linked bond
can be confident products considerations of both their investors and
The ICMA issued this and loan market to play an increasingly
deliver what they promise and credit providers.
publication, setting a similar mainstream role in the New Zealand
standard for the sustainability- are not “greenwashed”, which Another trend developing across the Tasman loan and bond markets. The guidance
linked and social bond is relevant for issuers of green is an increase in complex structured financial published by regulators and industry
markets. bonds in New Zealand. products that integrate green elements. In bodies provides a helpful platform
JUNE 2020 DECEMBER 2020 August 2020 BNP issued Australia’s first from which the market can develop.
19 | SUSTAINABLE FINANCE — THE GUIDANCECLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Bell Gully’s climate change practice
O
ur firm has been at the forefront That consistency in providing market-leading transitioning to meet New Zealand’s • High-level interpretation of
of climate change action in climate change advice is recognised by net zero carbon target. New Zealand’s climate change
New Zealand for more than 20 international legal directories. Bell Gully’s legislation and the implications of
• Advice on the implications of climate
years. We helped to develop core climate environment practice is ranked in the top international agreements including
change adaptation for your business or
change legislation in New Zealand and tier for environmental law in New Zealand the Paris Agreement.
have had long-standing involvement by the Legal 500 Asia Pacific 2020. community.
with New Zealand’s emissions trading • Advice on governance, risk and
Practice leader Simon Watt has also featured • Identifying carbon risks, as well as
initiatives, including advising the reporting associated with climate
in the world-wide climate change rankings advice on carbon pass-through and
New Zealand Government on the design change.
of the international legal directory Chambers trading.
of the New Zealand Emissions Trading • Advice on potential climate change
Global since 2008 – the only New Zealand • Robust due diligence around the sale
Scheme. Internationally, we worked
lawyer to be ranked in the last seven years. litigation, and acting on actual
on the world’s first carbon trade for or acquisition of emissions-exposed
climate change litigation matters
avoided deforestation and on pioneering We can provide you with: businesses or assets.
emissions trading activity. • Specialist advice on all areas of law • Advice on activity and the financing
We act for an array of individuals and involving the regulation and reduction of activity to implement carbon
organisations, ranging from leaders of greenhouse gas emissions. reductions and addressing regulatory
in the emissions trading market and barriers to a lower-carbon operation.
• Advice on the regulatory and
global investment banks to regional
commercial opportunities and
governments or government groups
barriers in all sectors (including
in New Zealand and overseas. This has
energy, transport, forestry, agriculture,
included some of the nations that will be
manufacturing, and mining)
among those most affected by climate
change.
20 | BELL GULLY’S CLIMATE CHANGE PRACTICEOur team
If you have any questions about this report, please contact one of the team listed or your usual Bell Gully adviser:
CLIMATE CHANGE CLIMATE CHANGE FORESTRY
Simon Watt Kate Redgewell Karl Anderson
PARTNER CONSULTANT PARTNER
DDI +64 4 915 6854 MOB +64 21 605 384 DDI +64 4 915 6868 MOB +64 21 570 945 DDI +64 9 916 8845 MOB +64 21 661 726
simon.watt@bellgully.com kate.redgewell@bellgully.com karl.anderson@bellgully.com
DERIVATIVES, BANKING AND FINANCE ENERGY FORESTRY
David Craig David Coull Andrew Petersen
PARTNER PARTNER PARTNER
DDI +64 4 915 6839 MOB +64 21 674 851 DDI +64 4 915 6863 MOB +64 21 800 308 DDI +64 9 916 8622 MOB +64 21 684 533
david.craig@bellgully.com david.coull@bellgully.com andrew.petersen@bellgully.com
LITIGATION RESOURCE MANAGEMENT RESOURCE MANAGEMENT
Blair Keown Andrew Beatson Natasha Garvan
PARTNER PARTNER PARTNER
DDI +64 9 916 8796 MOB +64 21 185 0409 DDI +64 9 916 8754 MOB +64 21 223 9170 DDI +64 9 916 8956 MOB +64 27 420 0561
blair.keown@bellgully.com andrew.beatson@bellgully.com natasha.garvan@bellgully.com
ENERGY LITIGATION SUSTAINABLE FINANCE
Angela Harford Simon Ladd Jennifer Gunser
PARTNER PARTNER PARTNER
DDI +64 4 915 6764 MOB +64 21 875 905 DDI +64 9 916 8934 MOB +64 21 920 508 DDI +64 9 916 8757 MOB +64 21 704 923
angela.harford@bellgully.com simon.ladd@bellgully.com jennifer.gunser@bellgully.com
21 | OUR TEAMOur team
If you have any questions about this report, please contact one of the team listed or your usual Bell Gully adviser:
PROJECTS AND REAL ESTATE PROJECTS AND REAL ESTATE CORPORATE
David Chisnall Toni Forrest Haydn Wong
PARTNER PARTNER PARTNER
DDI +64 4 915 6966 MOB +64 27 594 8505 DDI +64 4 915 6524 MOB +64 27 5055 910 DDI +64 9 916 8918 MOB +64 21 606 267
david.chisnall@bellgully.com toni.forrest@bellgully.com haydn.wong@bellgully.com
SUSTAINABLE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE
Zac Kedgley-Foot Amon Nunns James Cooney
SENIOR ASSOCIATE PARTNER PARTNER
DDI +64 4 915 6820 DDI +64 4 915 6741 MOB +64 21 687 368 DDI +64 9 916 8620 MOB +64 21 190 6145
zac.kedgley-foot@bellgully.com amon.nunns@bellgully.com james.cooney@bellgully.com
CORPORATE
Renata Davis
SENIOR SOLICITOR
DDI +64 4 915 6798 MOB +64 21 537 174
renata.davis@bellgully.com
Acknowledgements
Our thanks to Bell Gully lawyers Simon Watt, Simon Ladd, Natasha Garvan, Jennifer Gunser, Kate Redgewell, Zac Kedgley-Foot,
Rachel Gowing, Tasha Lea, Simone Cooper, Hannah Watson and Naushyn Janah for their assistance in preparing this report.
22 | OUR TEAMCLIMATE CHANGE - WHAT LIES AHEAD IN 2021?
Endnotes
1 https://www.wri.org/blog/2020/12/interactive-chart-top-emitters 18 Homes to start losing access to insurance within 15 years – report. (2020, December 2) Stuff.
https://www.stuff.co.nz/environment/climate-news/123560377/homes-to-start-losing-access-to-
2 https://www.climatecommission.govt.nz/get-involved/faq/looking-ahead/ insurance-within-15-years---report
3 Ministry for the Environment. 2021. Proposed changes to the NZETS and SGG levy regulations 2021: 19 https://www.unepfi.org/psi/wp-content/uploads/2021/01/PSI-TCFD-final-report.pdf
Consultation document. Wellington: Ministry for the Environment.
20 Review Panel Report page 189 para [96] and page 186 para [84].
4 Summarised from He Pou a Rangi – the Climate Change Commission 2021 Draft Advice for
Consultation. 21 Review Panel Report page 176 fn 223 citing Climate Change Adaptation Technical Working Group.
2017. Adapting to Climate Change in New Zealand: Stocktake Report from the Climate Change
5 Ministry for the Environment. 2021. Proposed changes to the NZETS and SGG levy regulations 2021: Adaptation Technical Working Group. Wellington: Climate Change Adaptation Technical Working
Consultation document. Wellington: Ministry for the Environment – Table 7. Group at 31. Retrieved from https://www.mfe.govt.nz/sites/default/files/media/Climate%20Change/
6 Ministry for the Environment. 2021. Proposed changes to the NZETS and SGG levy regulations 2021: adapting-to-climate-change-stocktake-tag-report.pdf
Consultation document. Wellington: Ministry for the Environment – Table 9. 22 https://deepsouthchallenge.co.nz/resource/insurance-retreat-december-2020-final-report/ at 3.
7 Ministry for the Environment. 2021. Proposed changes to the NZETS and SGG levy regulations 2021: 23 Tom Simonson and Grace Hall Vulnerable: The quantum of local government infrastructure exposed
Consultation document. Wellington: Ministry for the Environment – Table 10. to sea level rise LGNZ January 2019 at 12. Retrieved from https://www.lgnz.co.nz/assets/Uploads/
8 Ministry for the Environment. 2021. Proposed changes to the NZETS and SGG levy regulations 2021: d566cc5291/47716-LGNZ-Sea-Level-Rise-Report-3-Proof-FINAL-compressed.pdf
Consultation document. Wellington: Ministry for the Environment. 24 Cabinet Paper ‘Adaptation legislation – proposed timelines and process’ para [28]
9 https://www.bloomberg.com/news/articles/2021-03-17/eu-rules-bank-pledges-signal-new-day-for- 25 Sea level rise: insurance and retreat – James Shaw. (2020, December 7). Radio New Zealand. https://
europe-green-insight www.rnz.co.nz/national/programmes/ninetonoon/audio/2018775996/sea-level-rise-insurance-and-
10 https://www.nordea.com/en/press-and-news/news-and-press-releases/news-en/2021/140-funds- retreat-james-shaw
tighten-requirements-on-investments-in-fossil-fuel%20.html 26 Review Panel Report page 189 para [95].
11 https://www.bloomberg.com/news/articles/2021-03-17/eu-rules-bank-pledges-signal-new-day-for- 27 Defend or retreat — the struggle to save our beachside paths and reserves from rising sea levels.
europe-green-insight (2020, September 30). Stuff https://www.stuff.co.nz/environment/climate-news/122733616/defend-
12 https://www.hsbc.com/-/files/hsbc/investors/results-and-announcements/stock-exchange- or-retreat--the-struggle-to-save-our-beachside-paths-and-reserves-from-rising-sea-levels
announcements/2021/march/sea-210311-e-hsbc-announces-resolution-on-climate-change.pdf 28 Climate hazard property - from freehold to leasehold. (2021, February). Radio New Zealand. https://
13 https://ec.europa.eu/commission/presscorner/detail/en/mex_21_1106 www.rnz.co.nz/national/programmes/ninetonoon/audio/2018781916/climate-hazard-property-from-
freehold-to-leasehold
14 https://www.unep.org/resources/report/global-climate-litigation-report-2020-status-review
29 https://www.whakatane.govt.nz/residents/awatarariki-managed-retreat-programme
15 https://www.courtsofnz.govt.nz/assets/speechpapers/ccw.pdf pages 45-47.
30 https://environment.govt.nz/assets/Publications/Cabinet-papers-briefings-and-minutes/cabinet-
16 How has the insurance sector reacted to mandatory climate change reporting? (2021, April 28). paper-adaptation-legislation-proposed-timelines-and-process.pdf at [9] and [31].
Insurance Business NZ. https://www.insurancebusinessmag.com/nz/news/breaking-news/how-has-
the-insurance-sector-reacted-to-mandatory-climate-change-reporting-253400.aspx 31 https://environment.govt.nz/assets/Publications/Cabinet-papers-briefings-and-minutes/cabinet-
paper-adaptation-legislation-proposed-timelines-and-process.pdf at [45], [46].
17 https://deepsouthchallenge.co.nz/wp-content/uploads/2021/01/Insurance-Retreat-December-2020-
Final-Report.pdf 32 https://www.nzx.com/markets/NZDX
33 https://www.climatebonds.net/2020/12/1trillion-mark-reached-global-cumulative-green-issuance-
climate-bonds-data-intelligence
23 | ENDNOTESYou can also read
