New Zealand warned: Oil and gas drilling could damage Pacific relations and spark lawsuits

Civil servants from New Zealand’s foreign and trade ministry have raised concerns about the potential consequences of reversing a ban on offshore oil and gas exploration. The advice given to politicians highlights the risks to the country’s international reputation, relationships with Pacific nations, and the possibility of facing lawsuits over climate change.

In 2018, then Prime Minister Jacinda Ardern implemented a ban on fresh efforts to search for fossil fuels offshore. However, the current right-wing government led by Christopher Luxon has introduced legislation to reverse this ban, sparking controversy and debate.

The ministry’s official advice, accidentally made public despite attempts to keep it confidential, warns that lifting the ban could be perceived as going against the global consensus on transitioning away from fossil fuels. This sentiment was reinforced by the agreement made at the COP28 UN climate summit, urging governments to contribute to moving away from fossil fuels in energy systems.

The potential reaction of New Zealand’s Pacific Island partners is a significant concern, as the previous ban on offshore gas exploration was strongly supported by the Pacific nations. Tina Stege, climate envoy for the Marshall Islands, emphasized the importance of commitment to combating climate change and expressed disappointment at any moves to restart offshore exploration.

Legal risks associated with reversing the ban were also highlighted, including the possibility of not meeting New Zealand’s official climate plan and facing international legal challenges. Governments worldwide are increasingly being sued over their perceived lack of climate action, with recent rulings against Switzerland and Australia setting a precedent.

The foreign ministry also pointed out that lifting the ban could conflict with New Zealand’s free trade agreements, potentially leading to legal challenges. The advice, published in May 2024, has raised concerns about the increased risk of lawsuits and potential trade implications with the EU and UK.

Overall, the decision to reverse the ban on offshore oil and gas exploration in New Zealand is a contentious issue with far-reaching implications for the country’s reputation, relationships with Pacific nations, and legal standing in the global fight against climate change. The government faces a delicate balancing act between economic interests and environmental responsibilities as it navigates this complex issue.