New Zealand abandons international fossil fuel pledge
New Zealand's departure from the Beyond Oil and Gas Alliance came quietly, but not as a surprise to anyone closely following the Government's fossil fuel policies.
Resources Minister Shane Jones says the coalition's fossil fuel plans meant the exit was inevitable. But he also says more formal agreements, like free trade deals with the EU, include wriggle room for matters of sovereign risk, such as national energy supply.
Jones saw the Beyond Oil and Gas Alliance as a 'women's knitting group' by comparison and said New Zealand's energy needs were significant enough to warrant gas exploration under that 'sovereign risk' provision – meaning other international agreements were not set for some sort of domino effect.
As the Government's agenda items began to surface in 2023, chief executive of World Wildlife Fund NZ Kayla Kingdon-Bebb told Newsroom the international community's backlash against its climate policies would be harsher than the Government expected – particularly the National Party.
When New Zealand joined the Beyond Oil and Gas Alliance in 2021, it was only permitted as an associate member. Full membership hinged on a decision to ban onshore oil and gas exploration. Full members include Denmark, Ireland, France and several Pacific countries including Samoa, Vanuatu and Tuvalu.
But coalition agreements between all three Government parties committed to reversing the ban on offshore gas exploration, and $200 million was set aside in Budget 2025 to encourage exploration in New Zealand waters.
Legal advice later provided to the Ministry of Foreign Affairs and Trade said repealing the 2018 ban on offshore oil and gas 'would likely be inconsistent with the obligations in several of New Zealand's free trade agreements'.
The Green Party warned on Tuesday that, based on the assessment of an independent KC, the move breached another international commitment: the Agreement on Climate Change, Trade and Sustainability. This agreement was celebrated by Trade Minister Todd McClay last year as a 'pioneering' endeavour.
On Tuesday afternoon, McClay responded to questions from Greens co-leader Chlöe Swarbrick by doubling down on the nation's commitment to its climate targets: 'What it says about this Government is we will meet our international obligations. When we enter into them, we take them seriously.'
The following morning, New Zealand was found to have withdrawn from the Beyond Oil and Gas Alliance.
Swarbrick said the move showed the Government was 'straight up lying to New Zealanders when it talks a big game about renewables'.
'They are handing out subsidies to fossil fuel extraction beginning in a decade, cutting local energy efficiency programmes, breaching our international agreements, and now walking away from long-standing coalitions with historically bipartisan support.'
When Simon Watts assumed the position of climate change minister, he said he didn't expect a backlash from the international community as a result of lifting the ban.
As recently as November, he told Newsroom that officials assessed New Zealand could stay in the alliance while repealing the offshore ban.
But later that month, the co-chair of the alliance, Lars Aagaard, said New Zealand's status would need to be re-evaluated if it repealed the offshore drilling ban.
Meanwhile, Jones told Newsroom he'd long thought New Zealand would need to withdraw from the alliance, given the decision to resume oil and gas exploration. A departure had been 'uppermost in my mind' when he spoke to then-energy minister Simeon Brown 'quite some time back'. Jones said 'I would never have agreed for us to join up anyway.'
On Wednesday, following New Zealand's withdrawal from the alliance, Watts held his stance about international perceptions, but not about staying in the alliance.
Watts said he had received advice that withdrawing from the alliance was 'not going to have any significant impact' on New Zealand's international perception.
On June 21, New Zealand's alliance partners were notified the country would be pulling out of the alliance. Watts said these partners had not previously expressed concern over his Government's climate policies.
He said the incoming repeal of New Zealand's oil and gas ban was clear government policy, and now he was certain it would pass, withdrawing from the alliance was the right thing.
Jones, a longtime advocate for the fossil fuel sector, did not see all obligations as equal.
He said the Beyond Oil and Gas Alliance was more of a 'women's knitting group' than a firm legal commitment was the climate equivalent of the 'country women's institute'.
'You can go in and out of it.'
New Zealand's other commitments were instruments of a different character, Jones said.
'All of these international instruments leave New Zealand with enough wriggle room to address sovereign risks, and we do have challenges towards affordability and security of power.'
The Crown Minerals Amendment Bill passed its second reading in November. It was yet to pass its third reading.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
30 minutes ago
- Scoop
Flood Mitigation Makes Progress, One Year One From June Flood Event
One year on from the June 2024 flood event, the progress of the Wairoa Flood Mitigation project remains a testament to the resilience and collective commitment to working towards safeguarding the future of the Wairoa township. With more than 150 properties still yellow-stickered, the first anniversary of the June event serves as a poignant reminder of why flood mitigation remains so critical for Wairoa's future, says Crown Manager, Lawrence Yule. 'As we reflect on the impacts of the June 2024 flooding event, it's important to recognise the ongoing challenges and uncertainty faced by those still recovering from both last June and Cyclone Gabrielle. 'We must also look to the future and acknowledge the significant progress over the past twelve months as we work to advance much-needed flood mitigation solutions, both for North Clyde and the Wairoa River bar.' The approval of the Project Delivery Plan (PDP) and confirmation of the release of the $70 million in Crown funding was a significant milestone, Mr Yule says. 'Since then, we have continued to engage with those home and landowners directly impacted by the proposed flood mitigation solution, including those on the southern side of the Wairoa River where small stopbanks will be constructed to provide further protection. 'Land access negotiations for one property have already been completed in full, and independent property valuations have been completed on several other properties. These are important steps as we continue to work with those directly impacted to try and find a solution that enables them to move forward with certainty.' Provided land access and resource consents can be secured, Mr Yule says flood mitigation construction could begin as soon as late 2025. "The people of Wairoa have shown remarkable resilience and patience throughout this process. The legislative amendments recently requested from Government will help streamline the consenting process and move us closer to construction," Mr Yule says. 'We recognise that for many whānau, this anniversary brings back difficult memories and emotions. Our commitment remains unwavering – to work together to deliver the best possible technically viable flood mitigation solution that protects lives, homes, and businesses while minimising impacts on our community. 'This project is about more than just flood mitigation – it's about ensuring the safety and wellbeing of the Wairoa community for generations to come.'
Scoop
35 minutes ago
- Scoop
Electricity Authority Appoints Daylight To Deliver New Comparison And Switching Service
Following a competitive procurement process, the Electricity Authority Te Mana Hiko (the Authority) has appointed innovative technology and creative studio Daylight to develop a new energy comparison and switching service. Tāmaki Makaurau based Daylight is known for its world class behaviour-changing digital products and services. Authority Chief Executive Sarah Gillies says that the time is right to develop a new service that will ultimately empower consumers to take full advantage of a dynamic and competitive energy market. "As our energy system evolves, New Zealanders will have many more choices for how they use, buy and sell electricity," Gillies says. "While this will introduce greater complexity, the potential benefits for consumers and communities are immense. "An engaging and adaptive comparison and switching service will enable consumers to cut through the complexity to get more control over their energy bills. It will also strengthen retail competition and encourage innovation and service delivery." Daylight will deliver the new service by the end of this year and work with the Authority to evolve its capabilities over time, leveraging emerging technologies, improvements in data standardisation and a future consumer-data-right. The Authority and Daylight will also work closely with retailers to ensure new products and services are seamlessly integrated to support consumer choice. "Daylight are well-placed to help us achieve our long-term vision for a centralised service to help New Zealanders with their energy choices," says Gillies. "They bring fresh thinking, a strong track record and impressive technical capability." Daylight CEO Lee Lowndes says: "We're thrilled to partner with the Electricity Authority on such a meaningful project for Aotearoa. Helping Kiwis navigate an increasingly complex energy landscape is exactly the kind of challenge we love." The Authority will continue to support and promote Powerswitch until the new comparison and switching service is launched later this year. The Authority has been funding Powerswitch for several years and values Powerswitch's long-standing contribution to supporting consumer choice. Notes: The Electricity Authority is an independent Crown Entity with the main statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers. The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.
Otago Daily Times
2 hours ago
- Otago Daily Times
Poll: Do we pay too much for car parking in Chch?
By Susan Edmunds You might be paying too much for your parking, new research suggests. Ray White Group head of research Vanessa Rader looked at how New Zealand cities car park prices compared after conducting similar research in Australia. She found what New Zealanders pay for parking varies dramatically, even within cities. On average, she said the daily fees being paid in CBDs was $32.60 in Christchurch, $39.53 in Auckland, and $37.83 in Wellington. But people in Christchurch could pay anything between $10 to $98, while Aucklanders may pay from $12 to $80 and Wellingtonians $15 to $50. She said the range within cities suggested markets were 'highly fragmented' and location, quality and convenience made a big difference to price. In Australia, the difference between cities was much more pronounced than within them, she said. 'People always think of Auckland as being the most expensive but it's not wildly more expensive. 'It's really location sensitive. If people want to be in certain locations they're willing to pay that extra. But if you're just someone that's commuting and you're happy to walk a couple of blocks you can get a much cheaper price and you're still definitely within the CBD.' Rader said Christchurch has the most aggressive 'early bird' discounts at 48.97%, which suggested oversupply or weaker demand fundamentals. 'This mirrors strategies seen in other struggling markets where operators prioritise volume over margin to maintain cash flow. Wellington's more moderate 43.44% early bird discount indicated a more balanced supply-demand dynamic, while Auckland's 43.95% discount suggested healthy competition without desperation.' Rader said booking online would give people good savings on their car parking. Operators had improved their offerings and made it easier to access charging facilities and parking via phone apps, she said. 'You don't need to book days in advance or anything, it's all making it very seamless. Those car parking facilities that have a really easy way of being able to book their parking seem to be doing better.' People who own car park spaces were also using platforms to offer them to other people when they were not in use, she said. 'There seems to be a lot of that happening in Auckland, not anywhere else that I can see.' Christchurch had a 28.2% online discount, Auckland 19.9%, and Wellington 12.8%. She said the shift to working from home had also affected parking operators. But few car parks had changed hands in New Zealand.
