It's effectively an abandonment of our Paris commitment
There's also this (para 14(b) of the Cabinet paper)
Emission budgets are meant to steadily decrease emissions on the way to net zero in 2050. The 2050 target itself is not consistent with 1.5 degrees if up until 2049 you don't reduce emissions and do everything in 2050...
The Government is laying the groundwork for not meeting our international carbon reduction commitments through offshore credits and then also not meeting these commitments through domestic carbon reductions
environment.govt.nz/assets/publi...