New Zealand's growth model has tipped natural resources to "critical boundaries", according to the Ministry for the Environment.

The Environment Ministry has rubbished New Zealand's clean, green image and poked holes in the Emissions Trading Scheme in a frank briefing paper to incoming Climate Change Minister James Shaw.

Natural resources have been pushed to "critical boundaries" by the economy's reliance on exporting raw materials, and the Emissions Trading Scheme (ETS) is "not fit for purpose", the documents say.

They recommend the Government should include agriculture in the ETS, and should develop a plan to create a low-carbon economy.

STUFF The briefing to Climate Change Minister James Shaw recommends including agriculture in the Emissions Trading Scheme.

They also criticise the previous government's retrospective approach to hazard management – such as floods, droughts and coastal erosion – saying actions needed to become more forward-looking.

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The briefing papers, released publicly on Thursday, make the following recommendations:

CHRIS McKEEN/STUFF Hazard planning has to become more forward-looking, the ministry says.

IMPROVE THE ETS

The current scheme, intended to reduce emissions by placing a price on carbon, is "not fit for purpose".

The Government should implement improvements "to make it a more effective and credible tool for incentivising emission reductions".

In order to do so, it should fully implement plans to introduce auctions of carbon units to align the system with climate change targets; limit the use of international units when the market reopens to credits from abroad; and develop a different price ceiling to replace the current $25 fixed price option.

These changes would allow the Government to align the supply of carbon units with emission targets, and make the ETS more compatible with trading schemes in other countries.

The ministry is also developing advice on ETS forestry improvements, the future phase-out of free credit allocation, and other operational and technical improvements.

CONSIDER PUTTING AGRICULTURE IN THE ETS

Current targets under the Paris Agreement require New Zealand reduce its emissions to 30 per cent below 2005 levels by 2030. The briefings note New Zealand's emissions profile is unique among developed countries, with about half its emissions stemming from agriculture.

They recommend consideration of the full range of policy options for reducing agricultural methane and nitrous oxide emissions.

IMPROVE HAZARD PREPAREDNESS

Adaptations to natural hazards such as floods, droughts and coastal erosion have been reactive, and planning needs to become more proactive, "given the long-term and wide-ranging nature of climate change impact".

"To date, the main focus of the ministry's work has been on climate change mitigation. However, even if emissions dropped to zero tomorrow, some climate change impacts are already locked in.

"Climate change has caused New Zealand to warm by about 1 degree Celsius over the last century, and has contributed to recent droughts, floods and increased risk of coastal hazard."

PROTECT NATURAL RESOURCES

The papers note New Zealand's traditionally growth model is based on the export of primary products, which is starting to show its environmental constraints, exacerbated by population growth, increasing visitor numbers, and urban expansion.

It lists a number of reports showing pressure in mounting on climate, fresh water, the marine environment, and land.

CREATE A CLEAR PATH TO A LOW-CARBON ECONOMY

The Government should develop a plan to transition to a low-carbon economy.

This is backed up by a 2017 OECD Environmental Policy Review that recommended New Zealand develop a strategic plan to achieve the 2030 Paris Agreement target.