The Zero Carbon Act proposes two key changes from the UK Act to suit New Zealand’s circumstances: the Firewall Principle and the Two Baskets Approach. The Firewall Principle means that the targets in the Act will apply to New Zealand’s domestic emissions only, creating a ‘firewall’ between domestic action and international carbon trading, to ensure our own zero carbon transition is on track. The Two Baskets Approach sets separate targets and pathways for long-lived greenhouse gases (mainly carbon dioxide and nitrous oxide) and short-lived greenhouse gases (mainly methane). Long-lived gases must go to net zero by 2050 or sooner (accounting for carbon sinks). Short-lived gases must be significantly reduced to sustainable levels, but not zero.