Environmental organisations are condemning the Government’s decision to grant New Zealand’s first new offshore petroleum exploration permit in eight years, warning it undermines the country’s climate commitments and delays the transition to cleaner, more affordable energy.
The criticism follows the Government’s approval of a 12-year offshore petroleum exploration permit to Australian-owned EnZed Energy in the South Taranaki Basin, marking the first permit issued since the Coalition repealed the 2018 ban on new offshore oil and gas exploration.
A joint statement from WWF-New Zealand and Lawyers for Climate Action NZ says the decision sends New Zealand in the wrong direction at a time when the country should be accelerating investment in renewable energy rather than expanding fossil fuel exploration.
The organisations argue the permit raises questions about New Zealand’s ability to meet its international climate obligations.
They point to last year’s Supreme Court decision in Climate Clinic Aotearoa v Minister for Energy, which confirmed that climate change must be considered when decisions are made about opening areas for petroleum exploration. They also reference the recent advisory opinion of the International Court of Justice, which reinforced that countries have obligations under international law to address climate change.
The groups say approving new fossil fuel exploration risks exposing New Zealand to legal and reputational challenges while sending mixed signals about the country’s emissions reduction goals.
Environmental advocates are also raising concerns about the location of the permit.
The exploration area overlaps with the West Coast North Island Marine Mammal Sanctuary, home to the critically endangered Māui dolphin, one of the world’s rarest marine mammals. Conservation groups say any future exploration activity must carefully consider potential impacts on sensitive marine ecosystems and protected species.
While the current permit authorises exploration rather than drilling, any future drilling proposals would still require separate environmental approvals.
WWF-New Zealand and Lawyers for Climate Action argue that expanding renewable electricity generation offers a faster and more cost-effective pathway to improving New Zealand’s energy security.
They say technologies such as wind, solar and hydro are increasingly capable of delivering reliable electricity while reducing greenhouse gas emissions and limiting dependence on fossil fuels. Polling commissioned by the organisations suggests many New Zealanders are unconvinced that renewed oil and gas exploration will reduce household energy costs and instead favour greater investment in renewable energy.
The Government has defended its decision, saying exploration is needed to better understand New Zealand’s remaining petroleum resources as existing gas fields mature.
Ministers argue declining natural gas reserves present a risk to electricity generation during dry years and to industries that continue to rely on gas for manufacturing and processing. They say maintaining domestic energy supplies remains important while the country continues expanding renewable generation.
The decision also has significant implications for Māori, particularly iwi and hapū with customary interests in the coastal and marine environment.
Offshore resource development intersects with issues of kaitiakitanga, customary fisheries, marine biodiversity and Treaty responsibilities. Many tangata whenua have consistently called for meaningful engagement in decisions affecting moana and taonga species, alongside careful consideration of environmental and cultural impacts.
As debate over New Zealand’s energy future intensifies ahead of the General Election, the balance between energy security, economic development, climate action and environmental protection is likely to remain a defining political issue.
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