New Zealand’s population enjoys a high environmental quality of life, although strong economic growth has intensified energy and resource use and exerted increasing environmental pressures. This chapter examines the country’s progress in decoupling economic activity from environmental pressures, focusing on the period since 2000. It presents the key socio-economic developments and reviews New Zealand’s progress in moving towards i) an energy-efficient and low-carbon economy; ii) resource efficiency in material consumption waste management; iii) sustainable management of the natural asset base; and iv) a high environmental quality of life for its citizens.

New Zealand has significantly strengthened stakeholder collaboration in environmental management and established nationwide environmental requirements in several key areas. However, insufficient human and technical capacity of local authorities, along with remaining regulatory gaps, generate implementation challenges. This chapter analyses New Zealand’s environmental governance system, including horizontal and vertical co-ordination mechanisms. It reviews the regulatory framework for environmental impact assessment and permitting, as well as measures to ensure compliance with environmental law. The chapter also assesses progress in promoting public participation in decision making and access to environmental information, education and justice.

New Zealand experienced strong economic growth for most of 2000-15. The Business Growth Agenda aims to continue improving the productivity and environmental performance of the natural resource-based sectors to support the country’s growth. This chapter reviews New Zealand’s efforts to promote green growth and sustainable development at the domestic and global levels. It analyses progress in using economic and tax policies to pursue environmental objectives and in reforming potentially harmful incentives. The chapter also discusses policies to promote low carbon energy and transport infrastructure and services, and reviews the country’s eco-innovation performance.