Climate Change Minister Simon Watts says the government's decision to repeal the ban on new offshore oil and gas exploration was the main reason for leaving the coalition. Photo: RNZ / Nick Monro
The New Zealand government has quietly pulled out of an international coalition for phasing out fossil fuels.
The move follows the announcement of $200 million funding to support new drilling for fossil fuel fields at the Budget.
WWF NZ said it was a "shameful retreat from international climate leadership".
"This isn't just backsliding - it's an international embarrassment," chief executive Kayla Kingdon-Bebb said.
Greenpeace said New Zealand was the first country to withdraw from the deal, and there was a "growing risk that the government's reversal of climate change policies will result in backlash from New Zealand's trading partners".
Climate Change Minister Simon Watts said the catalyst for leaving the alliance was the government's decision to repeal the previous government's ban on new offshore oil and gas exploration.
Watts said the government was committed to its climate targets.
"As we undertake our energy transition towards lower emissions fuels, natural gas will play an important role in the stability of this system until viable alternatives are in place.
"With falling domestic production presenting as a real risk to our future energy needs, the government has been looking at all options to extend the supply of gas as a critical energy source. This includes repealing the current ban on offshore oil and gas exploration and the setting aside of a tagged contingency of $200 million over four years for co-investment in new gas fields through Budget 2025."
New Zealand joined the Beyond Oil and Gas Alliance at the Glasgow climate summit in 2021.
The international alliance of governments works together on the "managed phase-out of oil and gas production".
It was led by Denmark and Costa Rica, and includes France, Ireland, Portugal, Spain, Sweden and several Pacific island nations.
Watts confirmed New Zealand had exited the group after the move was reported by Carbon News.
He said he did not think it would have a significant impact on New Zealand's international reputation.
Watts said the government notified the alliance members in June that the repeal of the oil and gas exploration ban was coming, and removed itself from the group.
He said he had asked the Ministry for Foreign Affairs and Trade to communicate the decision in advance to Pacific countries, and had not received any negative feedback from other countries on the move.
Being an associate member - as New Zealand was - required working to end subsidies for oil and gas and ending public finance for fossil fuel development.
Newsroom reported in November that the coalition's decision to restart oil and gas exploration had raised questions among members about New Zealand's continued participation.
The Green Party said the move was the latest sign the government cared little for the climate crisis or its impacts on the cost of living.
Green Party co-leader Chlöe Swarbrick said the coalition's fossil fuel subsidies helped secure profits of fossil fuel executives but made life harder for regular people.
The news came a day after the Green Party released legal advice saying the coalition's $200 million dollar investment fund for local gas exploration was a "clear breach" of an international trade agreement with Costa Rica, Iceland and Switzerland.
The Agreement on Climate Change, Trade and Sustainability deal focuses on trade in sustainable goods and services and was signed by the government last November.
It has been described as a "ground-breaking" trade agreement that delivered commercial opportunities to New Zealand's economy, while addressing climate change and sustainability challenges.
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