New Zealand’s environmental reforms are being reversed in an attempt to boost the ailing economy and deliver on promises made to voters, Reuters reported on August 5.
After coming to power in 2023, the centre-right coalition led by Prime Minister Christopher Luxon announced it would lift a ban on oil and gas exploration, delay emissions pricing in agriculture by five years and boost mining.
The government is shifting the economy towards increasing exports. From March 2023 to March 2024, New Zealand’s economy grew by only 0.3%. Growth was lower only at the start of the coronavirus pandemic in 2020. The budget deficit is 6.8% of GDP.
Almost a quarter of New Zealand’s economy is based on exports. “For me, the economic situation is probably the worst I can remember in my adult life.”said Natural Resources Minister Shane Jones.
“Support for the revival of the mining sector is due to a clear understanding of our economic situation”“, the minister added.
Agriculture, including fishing, contributes 5% to the economy and provides about 80% of exports. Farmers helped the Luxon government come to power, arguing that repealed environmental policies made dairy and meat production unprofitable.
Farmers and other producers welcomed the changes. Environmentalists criticised the coalition as short-sighted.
“They don’t consider both sides of the balance sheet. For a few quick dollars, the current government is putting the prosperity of future generations of New Zealanders at risk.”said Nicola Toki, executive director of environmental organisation Forest and Bird.
The government’s climate commission said in a report that New Zealand was unlikely to meet emissions targets for 2030 and 2035, including promised reductions in animal-based methane emissions. The government has promised to remove agriculture from the emissions trading system.
From 2030, agricultural emissions will be taxed, but rules on protecting “important natural areas” to maintain biodiversity will be suspended.
Source: Rossa Primavera
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