The New Zealand government has announced significant changes to its environmental policies, as it seeks to address economic challenges and fulfill promises made to voters. The shift includes the reversal of certain environmental regulations, including a ban on oil and gas exploration and a delay in the implementation of agricultural emissions pricing.
Since coming to power in 2023, Prime Minister Christopher Luxon’s centre-right coalition government has emphasized the need to bolster the country’s economy. With the economy experiencing growth of just 0.3% in the year leading up to March 2024, the government has focused on increasing exports, which are crucial to New Zealand’s economy.
Resources Minister Shane Jones highlighted the urgency of the situation, noting that the country’s economic challenges required a reevaluation of priorities, including a revitalization of the mineral sector. “The economic situation for me, is arguably the worst of the set of circumstances that I can remember in my adult life,” he said.
Agriculture, including fishing, contributes significantly to New Zealand’s exports, and the reversal of some environmental policies has been welcomed by farmers. These changes aim to reduce the cost of dairy and meat production, which farmers argued would have become prohibitive under previous policies.
However, environmental groups have expressed concerns, arguing that the government’s approach could have long-term negative effects on the environment. Nicola Toki, CEO of environmental organization Forest and Bird, criticized the shift, stating that it may undermine future prosperity for New Zealanders.
In a related move, Air New Zealand recently withdrew its 2030 emissions target due to delays in acquiring new aircraft and high costs for environmentally friendly fuel. The opposition Green Party has voiced concerns that this may set a precedent for other businesses to adopt a similar stance on climate commitments.
A report from the government’s Climate Commission highlighted the risks associated with New Zealand’s ability to meet its 2030 and 2035 emission reduction targets. The report warned that any shortfall could necessitate expensive offshore mitigation efforts, potentially costing New Zealand billions of dollars.
The government has emphasized that it remains committed to addressing climate change, with plans to expand renewable energy, invest in new technology, and increase tree planting. Climate Minister Simon Watts assured that New Zealand would still meet its 2030 targets but acknowledged that further work is needed to achieve the 2035 goals.
In the agricultural sector, the government has proposed excluding agriculture from the emissions trading scheme until 2030, though agricultural emissions will still be taxed from that point. The government has also suspended some regulations aimed at protecting biodiversity through the preservation of “significant natural areas.”
Other sectors targeted by the government include energy and mineral resources. The government plans to allow oil and gas exploration, which was banned by the previous administration in 2018. The goal is to reduce the country’s reliance on coal imports, increase fuel exports, and stabilize energy prices for consumers and businesses. Additionally, the government aims to double mineral exports to NZ$2 billion over the next decade.
Environmental groups have raised concerns over a proposal for a fast-tracked consent process for resource projects, which could expedite approval for projects like seabed mining. Cindy Baxter, chair of Kiwis against Seabed Mining, expressed concern over the potential environmental impact, particularly in sensitive marine areas.
The changes reflect a broader shift in the government’s approach to balancing economic growth with environmental stewardship. While some sectors applaud the reforms, others warn of the long-term risks to New Zealand’s environmental reputation and sustainability.
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