Govt’s $200mill fossil fuel handout in breach of trade agreement

Legal advice commissioned by the Green Party shows the coalition Government’s $200 million “investment” in new gas fields is a clear breach of the Agreement on Climate Change, Trade and Sustainability (ACCTS).

“The National Party tell us they’re good economic managers then tank the economy; they tell us they’re committed to our climate commitments then breach those commitments,” says the Green Party Climate Change spokesperson and co-leader, Chlöe Swarbrick.

“It took just six months for this Government to breach a trade agreement that they themselves signed up to. In November last year, Trade Minister Todd McClay sent out a PR celebrating signing the ACCTS. In May’s budget lock-up, we spotted that their $200 million hand out to fossil fuel companies was probably in breach of that very agreement.

“True to type, we weren’t able to get straight answers out of the Government. It became clear they didn’t commission any advice or do any due diligence. So we did the work.

“An independent KC’s legal advice shows the Government’s $200 million hand out for new gas fields falls clearly within the definition of ‘a prohibited fossil fuel subsidy,’ in breach of Article 4.3 of the ACCTS. This ‘investment’ doesn’t meet the threshold for any exceptions.

“There’s no grey area here. This is a blatant violation of our international commitments.

“If the Government cared about energy security or regional resilience, they would be investing in distributed renewable energy. Instead, they’ve decided to throw gas on the climate crisis fire and spit in the face of our Trade and Climate Agreements while lining the pockets of fossil fuel executives.

“The Greens are calling on the Government to recall this fossil fuel handout and spend the money on things that will actually make a positive difference,” says Chlöe Swarbrick.

Hon. Todd McClay Press Release on joining ACCTS: NZ signs trade deal with Costa Rica, Iceland and Switzerland | Beehive.govt.nz
Budget 2025: Could new Government gas money put New Zealand trade at risk? | Stuff

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