New Zealand has officially lifted its six-year ban on offshore oil and gas exploration, reversing a landmark climate policy introduced in 2018 by former Prime Minister Jacinda Ardern. The decision took effect in May 2025 and comes as the country faces growing concerns over energy shortages and falling natural gas supplies.
The government, led by Prime Minister Christopher Luxon’s center-right coalition, has included NZ$200 million in the 2025 budget to co-invest in new gas field developments over four years. Officials say the move is aimed at restoring investor confidence and ensuring future energy stability.
Although new offshore gas fields are unlikely to become operational before 2035, the government sees the policy shift as a necessary step to address long-term energy security. Resources Minister Shane Jones said, “We are already feeling the pain of constrained supply,” pointing to a sharp drop in domestic gas production—down 12.5% in 2023 and a further 27.8% in early 2024.
The original 2018 ban stopped the issuing of new offshore permits, except in the onshore Taranaki region. It was widely praised by environmental groups and seen as a bold step toward reducing New Zealand’s carbon emissions. At the time, Ardern declared that “the world has moved on from fossil fuels.”
However, the Luxon government argues the ban contributed to a rise in energy imports, including coal and diesel, as local gas supplies shrank. Officials now believe the country must take a “pragmatic” approach that balances economic growth and energy security.
The decision has sparked sharp criticism from environmentalists, opposition parties, and Indigenous groups. Greenpeace New Zealand warned the move could increase the risk of oil spills and worsen the climate crisis, calling it a “disaster for the climate and the ocean.”
Diplomats and trade experts have also warned that reversing the ban could damage New Zealand’s global reputation, strain relations with Pacific Island nations, and expose the government to climate-related lawsuits.
In response to the policy change, the Crown Minerals Amendment Bill was introduced in Parliament to formally lift the ban and reopen offshore areas for exploration.
The decision highlights the challenge of balancing energy needs with environmental responsibility. Critics warn that shifting back to fossil fuels sends conflicting signals about New Zealand’s climate goals and could slow progress toward a low-carbon future.
Experts say that lasting solutions will require strong investment in renewable energy, a clear plan to phase out fossil fuels, and close global cooperation. As the world works to limit global warming to 1.5°C, New Zealand’s move shows how fragile climate commitments can be when economic and energy pressures rise.
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