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Home / New Zealand / Politics

New Zealand abandons global alliance on oil, gas phase-out, Greens concerned about reputational risk

Jamie Ensor
By Jamie Ensor
Political reporter·NZ Herald·
25 Jun, 2025 05:19 AM5 mins to read

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Green Party Co-Leader and Act Leader David Seymour talk to Ryan Bridge on Herald NOW's political panel on Israel-Iran conflict and the gas exploration fund.

The Green Party is concerned the Government’s decision to abandon an alliance on phasing out oil and gas production will undermine New Zealand’s global relationships.

The decision has been called an “international embarrassment” by one environmental group, while another likened it to “withdrawing your investments in smartphones to back fax machines instead”.

But the Climate Change Minister says advice shows it won’t have a significant impact on New Zealand’s reputation and is downplaying the alliance’s importance internationally.

Resources Minister Shane Jones last week revealed to the Herald that New Zealand would put “to the sword” its involvement with “such an indulgent, vanity-belief community”.

“I want us to leave it as soon as possible. I look forward to announcements in the not-too-distant future,” Jones said.

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It was confirmed today that New Zealand had notified the Beyond Oil & Gas Alliance (Boga) on Saturday that it was pulling its associate membership.

The Boga, which was formed at a UN climate summit in 2021, is a grouping of countries and other stakeholders intended to “elevate the issue of oil and gas production phase-out” in international dialogues, while driving action on a just transition away from fossil fuels.

New Zealand, along with Belize and California, was an associate member of the alliance, which means it has taken “significant concrete steps” to contribute to “the reduction of oil and gas production”.

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The core membership includes Denmark, Ireland, France, Portugal, Spain, Samoa and Sweden. These members must have a set date for ending oil and gas production and exploration and have committed to stopping concessions, licensing and leasing.

Resources Minister Shane Jones told the Herald last week that New Zealand would be leaving the alliance. Photo / Mark Mitchell
Resources Minister Shane Jones told the Herald last week that New Zealand would be leaving the alliance. Photo / Mark Mitchell

Climate Change Minister Simon Watts said only a relatively small number of countries were involved in the Boga and “in the context of significance or implications, it doesn’t have anything material for this Government”.

He said that given the Government was reversing the new oil and gas exploration ban – implemented by the Labour-led Government in 2018 – New Zealand could no longer be a member.

“There are a large number of alliances and agreements that are in place. This isn’t significant in the context of the broader agreements that we’re part of,” the minister said.

Watts added that advice he’d received showed leaving the alliance was “not going to have any significant impact”.

He confirmed the Ministry of Foreign Affairs and Trade had been asked to communicate the decision to Pacific nations “in good faith”. The Government hadn’t heard any concerns from other countries about it, the minister said.

New Zealand notified the alliance on Saturday that it was leaving. Photo / Mark Mitchell
New Zealand notified the alliance on Saturday that it was leaving. Photo / Mark Mitchell

But Green Party co-leader Chlöe Swarbrick said there were reputational and relationship risks with leaving the alliance.

“This Government is currently making a lot of our international reputation, particularly when it comes to our role to play in diplomacy,” she said. “They’re also saying that our relationships that we build offshore are incredibly important.”

“Of course, the Prime Minister is underscoring this message by currently being offshore and trying to build those relationships. If we are actively ... undermining those relationships and backing down on our word, I think that there are really valid questions that the international community will be asking about our reputation and whether people can trust us.”

Later on Wednesday, Swarbrick asked Watts in the House about a statement he made in November last year that it was “our expectation that we will remain an associate member”.

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The minister responded that at the time, “the Government’s intention to repeal the offshore oil and gas ban did not necessarily mean New Zealand would not be able to remain a member of the Beyond Oil and Gas Alliance”. However, a decision had since been made to withdraw, he said.

Watts defended the decision to reverse the oil and gas ban by saying there is a shortage of gas in the system.

“I make no apology that my primary focus is to ensure that we can keep the lights on for New Zealanders.”

Critics of repealing the ban argue it is irresponsible given the climate issues, it is not a short-term fix to energy issues and there is no guarantee that new gas will be discovered.

“New Zealand has, and will continue to have, one of the most renewable electricity sectors in the world,” Watts said in a statement.

“The Government is also committed to our climate targets and our international climate obligations. 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.”

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He said New Zealand would continue to cooperate with alliance members through other channels.

Greens co-leader Chlöe Swarbrick has raised concern with the decision. Photo / Mark Mitchell
Greens co-leader Chlöe Swarbrick has raised concern with the decision. Photo / Mark Mitchell

A number of environmental groups have commented on the Government’s decision to leave the Boga, including Greenpeace, which said it was “like withdrawing your investments in smartphones to back fax machines instead”.

WWF-New Zealand’s chief executive Dr Kayla Kingdon-Bebb said it was an “international embarrassment”.

“The coalition Government is not only turning its back on climate action – it’s also turning its back on our Pacific neighbours, who are on the front lines of the climate crisis and have repeatedly pleaded for an end to fossil fuel expansion.”

On Tuesday, the Greens revealed legal advice it had commissioned showed the Government’s decision to set up a $200 million contingency fund for co-investment in new gas fields could breach a trade deal agreed to last year with Costa Rica, Iceland and Switzerland.

However, Trade Minister Todd McClay maintained New Zealand was compliant with the agreement in question and the fund did not meet the definition of a fossil fuel subsidy as set out in the deal.

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Jamie Ensor is a political reporter in the NZ Herald press gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. In 2025, he was a finalist for Political Journalist of the Year at the Voyager Media Awards.

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