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Govt unveils plans for carbon storage regulations – and ETS rewards

18 Dec 2025

Depositphotos
Image: Depositphotos

By Liz Kivi

The Government has released plans to regulate carbon capture and storage in natural geological formations, which include Emissions Trading Scheme incentives, with the aim of introducing related legislation in 2026.

It has been hailed as a positive first step to include sequestration other than forestry in the NZ ETS. However the ETS carbon price is currently too weak to incentivise the investments required for CCS, and aspects of the proposed regulatory system have also raised concerns.


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Story copyright © Carbon News 2025

Related Topics:   Carbon Credits Carbon prices Emissions trading Energy Forestry Low carbon NZ ETS Policy development Politics Technology

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Govt finalises geothermal strategy and commits to $50m boost

Thu 19 Mar 2026

By Shannon Morris-Williams | The Government has launched a plan to grow geothermal energy and committed a further $50 million from the Regional Infrastructure Fund to support early-stage projects and drive expansion of the sector.

LNG sold as insurance, but modelling points to a bigger role

Thu 19 Mar 2026

New Zealand’s gas market is heading for a sharp contraction whether the country sticks with domestic supply alone or introduces liquefied natural gas imports.

ECan says coastal protection a priority despite planning handbrake

Thu 19 Mar 2026

By David Hill, Local Democracy Reporter | Canterbury’s regional council says it is continuing to address coastal protection rules, but conservationists say it is not acting fast enough.

Protesters outside Wellington High Court at the start of the hearing on Monday

Govt process to change climate plan ‘fundamentally flawed’, says judge

Wed 18 Mar 2026

By Pattrick Smellie | The government’s 2024 changes to New Zealand’s first Emissions Reduction Plan was “as fundamentally flawed a process as I think I have ever seen”, the judge presiding in a case challenging climate change decision-making has said.

Protestor outside Wellington High Court on Monday

Disestablishing Environment Ministry 'too risky', say environmental advocates

Wed 18 Mar 2026

By Shannon Morris-Williams | The Government's plan to fold the Ministry for the Environment into a 'mega ministry' is fraught with risk, according to separate submissions from the Environmental Defence Society, Forest & Bird and Environment Network Manawatū.

Iran oil crisis: why NZ’s car dependence is now a strategic liability

Wed 18 Mar 2026

By Timothy Welch, University of Auckland, Waipapa Taumata Rau | The war in Iran and the effective closure of the Strait of Hormuz have sent oil prices past US$100 a barrel – and Kiwis flocking to fill up. Petrol just hit NZ$3 a litre and some stations have reported running dry.

Protestors outside Wellington High Court yesterday

Close questioning over ‘ministerial latitude’ at climate hearing

Tue 17 Mar 2026

By Pattrick Smellie | Lawyers challenging the legality of the government’s emissions reduction plans faced close questioning on the limits of ministerial foresight in the first of three days of hearings at the Wellington High Court yesterday.

Keep environment out of merger, says Upton

Tue 17 Mar 2026

By Shannon Morris-Williams | Parliamentary Commissioner for the Environment Simon Upton is calling on the Government to keep the Ministry for the Environment out of a mega-ministry merger, saying it needs its own ministry to protect transparency and contestable decision-making under the new resource management system.

Oil shock tests Government’s balancing act

Tue 17 Mar 2026

The Government is trying to show it is on top of fuel security risk without giving the impression New Zealand is heading for a shortage.

Mayor stands by comments over AI factory cable

Tue 17 Mar 2026

By Matthew Rosenberg, Local Democracy Reporter | Invercargill mayor Tom Campbell is standing by his view that a new cable for a large AI data factory will not impact the environment at Ōreti Beach, despite a report saying otherwise.

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