New Zealand rolls back green policies as the government reverses environmental regulations to assist a struggling economy and keep promises made to voters. Since entering power last year, Prime Minister Christopher Luxon’s centre-right coalition has announced plans to lift a moratorium on oil and gas exploration, postpone agricultural emissions pricing for five years, and encourage additional mining.

This is part of a government change in focus towards expanding exports to assist an economy that grew by only 0.3% in the fiscal year ending March 2024, its slowest growth since the pandemic struck in 2020. The current account deficit is 6.8% of GDP.

The agriculture industry, which includes fishing, contributes 5% to the economy and provides for around 80% of total exports. Farmers who supported Luxon’s administration’s win power said that the coalition government’s environmental measures would have rendered dairy and meat production prohibitively expensive. While farmers and businesses have welcomed the measures, environmentalists have slammed the coalition for what they see as shortsighted policies.

As Nicola Toki, CEO of environmental organisation Forest and Bird, said, “They fail to look at both sides of the record here, and the financial consequences of wrecking the joint for a few quick bucks for the government of today, putting the prosperity of future generations of New Zealanders at risk.”

Air New Zealand abandoned its 2030 emissions target last week, citing delays in new aircraft deliveries and high environmental fuel prices. The opposition Green Party expressed concern that the government’s “low ambition approach to climate change” will inspire other firms to follow suit.

According to a report released by the government Climate Commission, as New Zealand rolls back green policies, it faces considerable risks in fulfilling its domestic emission objectives for 2030 and 2035 and its projected reduction in methane from animals and waste.

It stated that any shortfall in attaining these targets would necessitate further offshore mitigation to fulfil the nationally set contribution. Last year, the Treasury estimated that mitigation might cost NZ$23.5 billion ($14 billion).

The government has stated that New Zealand is rolling back green policies and is working on a climate change strategy that involves planting more trees, expanding renewable energy supply, and investing in cutting-edge technology to minimise emissions. Climate Minister Simon Watts stated that the government intends to accomplish the 2030 aim but acknowledged that more work is required to meet the 2035 target.

Agricultural emissions will continue to be taxed beginning in 2030, but rules governing the protection of “significant natural areas” to promote biodiversity will be postponed. Other areas targeted by the government include energy and natural resources.

It has stated that it will resume oil and gas development, which former Prime Minister Jacinda Ardern stopped in 2018, to minimise coal imports, increase fuel exports, and maintain low energy prices for the general population and small enterprises.

As New Zealand rolls back green policies, the government has also launched a resource stocktake and set an objective of doubling mineral exports to NZ$2 billion over the next ten years.

It has also proposed a fast-track consenting mechanism allowing mines to bypass present resource consents provided they can obtain ministerial permission.

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