Government goes for gas stake
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What will the Government achieve by setting aside $200 million to try and get a small stake in a new offshore gas field? Associate Energy Minister Shane Jones announced the move in the budget last week saying the Crown would take a 10 to 15 per cent stake in a new gas field to help feed the domestic market.
While electricity generators have purchased gas from the country's biggest user, Methanex, for domestic supply, other gas users such as schools and hospitals are unable to get supply contracts of more than a year, and prices are going up for everyone. But new gas fields are a huge investment, and the sector has struggled to meet demand.
Mac Beggs has worked on oil and gas exploration for decades in New Zealand - he says there are two, maybe three wells that have potential.
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RNZ News
18 minutes ago
- RNZ News
Climate change scientists accuse government of 'ignoring scientific evidence'
Climate change scientists have written an open letter to Christopher Luxon warning that New Zealand government plans to introduce new agriculture methane targets will jeopardise existing agreements. Photo: RNZ / Marika Khabazi More than 25 international climate change scientists have written an open letter to Prime Minister Christopher Luxon, accusing the government of "ignoring scientific evidence" and urging it to "deliver methane reductions that contribute to the goal of limiting global warming to 1.5 degrees". The open letter warns the New Zealand government that plans to introduce new agriculture methane targets based on a goal of causing ''no additional warming" will jeopardise New Zealand's commitments under the Paris Agreement and the Global Methane Pledge. The 26 scientists from different countries say adopting targets consistent with no additional warming implies that current methane emissions levels are acceptable when they are not. "Setting a 'no additional warming' target is to say that the wildfires in America, drought in Africa, floods across Europe, bushfires in Australia, increasing food insecurity and disease, and much more to come are all fine and acceptable, signatory Paul Behrens, global professor of environmental change at Oxford University said in a statement sent to RNZ. "The irony is that agriculture, one of the sectors most vulnerable to climate impacts, has many large, vested interests that resist and lobby against the very changes and just transitions needed to avoid those impacts," he said. Another scientist behind the letter was quoted prominently in UK newspaper the Financial Times saying the New Zealand government's approach was an "accounting trick" designed to hide the impact of agriculture in rich countries with big farming sectors, namely Ireland and New Zealand. Luxon dismissed the letter, saying academics "should send their letters to other countries" and he was not going to penalise New Zealand farmers because they were already managing methane emissions better than "every other country on the planet". New Zealand has one of the highest per-capita methane rates in the world because of its farming exports, as well as high per capita carbon emissions. Agricultural lobby groups argue the government should lower its 2050 methane target so that, rather than aiming to reduce global heating from livestock, it would aim to keep them the same, a target known as "no additional warming". The current target of 24-47 percent by 2050 already reflects the fact that methane is shorter lived at heating the planet than carbon dioxide, but farming groups says it is too high - and the current government appears receptive. Federated Farmers says the current target is unscientific, and the government appointed a panel to conduct a "scientific review" to the side of its independent Climate Change Commission. Lowering the target would fly in the face of advice from the commission, which says reductions of 35-47 percent are needed for New Zealand to deliver on its commitments under the Paris Agreement. Signatory to the letter Professor Drew Schindel is a professor of climate science at Duke University in the US and chair of the 2021 UNEP Global Methane Assessment. "The New Zealand government is setting a dangerous precedent," he said. "Adopting a goal of no additional warming means New Zealand would allow agri-methane emissions to continue at current high levels instead of using the solutions we have available to cut them. "Agriculture is the biggest source of methane from human activity - we can't afford for New Zealand or any other government to exempt it from climate action," he said in a statement sent to RNZ. Shindell told the Financial Times that using the New Zealand government's approach: "If you're a rich farmer that happens to have a lot of cows, then you can keep those cows forever" which "penalises anybody who's not already a big player in agriculture", including "poor farmers in Africa that are trying to feed a growing population". Agricultural lobby groups argue the government should lower its 2050 methane target. Photo: Supplied The letter was prompted by a powerful push by agriculture lobby groups here and overseas for developed countries to base their climate targets on an alternative method for calculating methane's climate impact, which estimates its contribution to warming based on how emissions are changing relative to a baseline. Proponents argue the newer method, known as global warming potential star (GWP*), better reflects methane's short-lived nature in the atmosphere compared to the long-lasting effects of carbon dioxide and should replace the traditional method of averaging climate impacts over 100 years. Experts say both methods are scientifically valid and can be used to reveal different things. The controversy is over using GWP* to argue that farming sectors in wealthy countries do not have to reduce their climate impacts. The letter argues using GWP* to justify not reducing the impact of farming is incompatible with global efforts to limit heating to between 1.5 and 2C. "It's like saying 'I'm pouring 100 barrels of pollution into this river, and it's killing life. If I then go and pour just 90 barrels, then I should get credited for that'," Behrens told the Financial Times . The government's science review of New Zealand's methane target has been dismissed by the Parliamentary Commissioner for the Environment as a purely political exercise. Simon Upton has said there is no particular reason why farmers should get to 'keep' today's levels of heating, particularly given farming's climate impact is larger than it was in 1990. Methane has caused most of New Zealand's contribution to heating so far, partly because it acts more quickly than carbon dioxide, front-loading the impact before it tails off. Climate Change Minister Simon Watts said Cabinet was still carefully considering its decision on whether to lower the target and to what level. He said he did not take the commentary to heart and "it doesn't stop the direction of travel we are following in undertaking a scientific review". Simon Watts said he remained happy with how the government's review of New Zealand's methane target was progressing. Photo: RNZ / Samuel Rillstone He said he remained happy with the context of the review and the expertise of the scientists the government selected for it. The panel established by the government last year concluded a 14 - 24 percent reduction in methane emissions off 2017 levels by 2050 was sufficient to ensure no additional warming from the livestock industry. The review was led by former climate change commissioner and former Fonterra board member Nicola Shadbolt. However the panel was not allowed to comment on whether "no additional warming" was an appropriate target. That decision remains one for Cabinet to make. Myles Allen, professor of geosystem science at Oxford University's physics department and one of the scientists behind GWP*, agreed it was a political call - telling the Financial Times that governments, not scientists, must decide whether farmers should undo past warming from herd growth. He said he supported separate targets for methane and carbon dioxide, and said traditional approaches to methane overstated the warming impact of keeping emissions the same, and were slow to reflect the impact of raising or lowering methane. Methane is more potent over short periods than carbon dioxide, so raising or lowering it has an immediate strong impact. New Zealand has separate targets for methane and carbon dioxide. The latter needs to fall to net zero by 2050. The open letter comes almost a year to the day after a top Australian climate scientist told RNZ the government's goal of 'no added heating' from farming's methane was problematic. Professor Mark Howden , Australasia's top representative on the Intergovernmental Panel on Climate Change, said taking a "sensible" mid-point from various IPCC pathways, methane would need to fall by roughly 60 percent by 2050 to meet global climate goals, though not all of that reduction needed to come from agriculture. Oil and gas industry leaks are also major contributors to methane production, and are under pressure to fall more rapidly, because they do not contribute to food production. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
32 minutes ago
- RNZ News
Two months, no offers: Is Wellington's real estate market improving?
Charlotte Weston's home. Photo: Supplied Charlotte Weston has had her Wellington home on the market for two months but is yet to receive an offer. "There's been steady interest at open homes and second viewings requested, but no offers." She said a couple of houses had sold nearby for less than the asking price so she had lowered her expectations. It is now on the market for $550,000. "Mine is currently listed for what I paid for it last year, despite all the improvements that I made to it like adding a heat pump, insulation and more storage. I can't drop it any further. I have accepted I'll lose money on it but it's surprising to me that it's taking so long to get any significant interest." She said the real estate salesperson selling her property had told her it was a slow market. Weston is moving to Melbourne for family reasons. "It's definitely tougher than I expected. The news I've seen is that although there's a slow increase on house prices, there's still an increase, and I didn't know it would sit on the market for this long without an offer. It's an ordinary ex-state house but there's nothing wrong with it." New data from shows that, although Wellington's property market has been doing it tough lately, sellers might be starting to feel more confident. Wellington's prices are still down 25.1 percent from their peak, the biggest drop in the country, according to Real Estate Institute data. But Wellington's asking price is now almost $95,000 more on average compared to May 2024, a lift of 12.9 percent. Across the country, the national average asking price is only up 0.8 percent over that same period. The house is for sale in Naenae. Photo: Supplied chief executive Sarah Wood said Wellington was worth watching closely. "After months of subdued figures, this lift could be early evidence of buyer confidence returning to the capital. A jump like this gives vendors reason to feel optimistic." New listings were down in Wellington by 32.1 percent compared to May 2024, possibly driving the average asking price increase. "We still need something significant to really move the dial in the property market. Last week's OCR drop wasn't that, but if interest rates drop and we see more investors in the market, we're likely to see a greater appetite for buying," she said. Cotality chief property economist Kelvin Davidson said Wellington's market was starting to show signs of life. "But it's also important to note it's coming from a low base and you always need to be a little careful with asking prices may not necessarily be the case here, but the mix of properties being listed can skew prices from time to time. "Long story short, yes Wellington does seem to be picking up - as are other parts of the country too, but it's not likely to be a boom any time soon." Weston said she would need to see more evidence before being confident things were turning around. "I don't know that I could judge any signs of improvement - the only way I'll really know is when I get offers. Numbers at open homes have been up and down week by week so I can't really judge by that."
RNZ News
32 minutes ago
- RNZ News
Four new Black Caps contracted, two veteran spinners miss out
Mitch Hay of New Zealand, New Zealand Blackcaps v Pakistan, 2nd ODI cricket match at Seddon Park, Hamilton, New Zealand on Wednesday 2 April 2025. Photo: Andrew Cornaga/ Four players have been given their first Black Caps central contracts, while two veteran spinners are among those to miss out on contracts for next season. Canterbury keeper-batter Mitch Hay , Wellington allrounder Muhammad Abbas , Canterbury fast bowler Zak Foulkes and Auckland leg-spinner Adi Ashok have earned their first central contracts. Those who were contracted last season but miss out are Ajaz Patel, Ish Sodhi, Josh Clarkson and Tim Southee, who has retired. Kane Williamson, Devon Conway, Finn Allen, Tim Seifert and Lockie Ferguson have in recent years declined contracts, but New Zealand Cricket said discussions on casual playing contracts with them are ongoing. Last season the salary for contracted players ranged from $165,000 to $318,000. Henry Nicholls has been included on the list of the 20 contracted players. He played just six ODI's for New Zealand last season. "The contracts with Mitch, Muhammad, Adi and Zak reflect the incredible talent coming through our system," NZC Chief Executive Scott Weenink said. "The list captures the depth and versatility of our talent pool. With a packed season ahead, including the ICC T20 World Cup in February, these players are ready to make their mark and inspire fans across New Zealand." Ish Sodhi celebrates a wicket against India in 2023. Photo: PHOTOSPORT Hay, 24, struck an unbeaten 99 off 78 balls to anchor New Zealand's ODI innings against Pakistan earlier this year, and also set a world record with six dismissals in a T20I during his debut tour in Sri Lanka in November. Twenty one year-old Wellington allrounder Muhammad Abbas smashed a record-breaking 52 off 26 balls on his ODI debut against Pakistan in March, setting the fastest fifty on debut in men's ODIs. Foulkes, 22, made his T20I debut for the Blackcaps against Pakistan last year, stepping in for the injured Adam Milne and impressing with his all-round skills. He made his ODI debut in November. Ashok, 22, returned to the ODI squad earlier this year after making his debut in 2023, and most recently grabbed with a five wicket haul in New Zealand A's win over Bangladesh A at Sylhet. The Black Caps next assignment is a two-Test tour of Zimbabwe in July and August. Full list of players centrally contracted for 2025-26 : Adithya Ashok, Michael Bracewell, Tom Blundell, Mark Chapman, Jacob Duffy, Zak Foulkes, Mitch Hay, Matt Henry, Kyle Jamieson, Tom Latham, Daryl Mitchell, Muhammad Abbas, Henry Nicholls, William O'Rourke, Glenn Phillips, Rachin Ravindra, Mitchell Santner, Ben Sears, Nathan Smith, Will Young
