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A recent Chapman Tripp study, commissioned by The Aotearoa Circle, has found that over half of investors interested in New Zealand’s natural assets have had to delay or put aside projects due to legal and regulatory challenges. The Resource Management Act (RMA) was highlighted as the most significant hurdle.
The research, titled Investing in New Zealand’s Natural Assets: Regulatory Actions to Unlock Nature Finance, reveals that while there is strong interest in voluntary projects benefiting nature or the environment, 52% of those surveyed have had to abandon or postpone projects due to a mix of financial and non-financial obstacles. Legal and regulatory issues were mentioned by nearly three-quarters of respondents as a key obstacle - on par with funding difficulties. The RMA regime was singled out as the leading source of these barriers.
These findings point to the need for ongoing law reform to help bring greater clarity, coherence, and innovation to New Zealand’s regulatory framework to better enable investment in the country’s natural assets and infrastructure. New Zealand’s economy is deeply reliant on natural capital. Food, fibre, forestry, fisheries, and tourism - all underpinned by land, water, and biodiversity - collectively account for more than half of the nation’s export earnings and a significant share of GDP. Yet despite this dependence, capital flows into nature-positive projects remain limited.
The report examines practical legal barriers that often create significant roadblocks for investors - driving up costs, limiting returns, and, in some cases, making projects unviable. It also outlines legal and regulatory reforms aimed at unlocking further voluntary private sector investment and ensuring that investment in New Zealand’s natural assets has a greater positive impact.
