Source: New Zealand Parliament – Hansard
Question No. 2—Energy and Resources
2. Hon JULIE ANNE GENTER (Green) to the Minister of Energy and Resources: Does she consider it appropriate for the Crown Minerals Act 1991 to continue to promote exploration for fossil fuels when, last year in 2021, the International Energy Agency’s executive director stated, “If governments are serious about the climate crisis, there can be no new investments in oil, gas and coal, from now—from this year”?
Hon Dr MEGAN WOODS (Minister of Energy and Resources): Following our decision to end the issuing of new offshore oil and gas exploration permits in 2018, the Government initiated a two part review of the Crown Minerals Act (CMA) to ensure it was fit for purpose as New Zealand transitioned away from fossil fuels. Tranche one gave effect to the policy to end offshore petroleum exploration and confine any future onshore development to the Taranaki region only. Tranche two is wider in scope, examining the changes needed to enable New Zealand’s petroleum and mineral resources sector’s contribution to a productive sustainable and inclusive economy. It also addresses our decision to evaluate the current wording of the purpose statement. Public consultation has been completed and the work on this tranche is progressing. Decisions on tranche two of the CMA review will be announced in due course.
Hon Julie Anne Genter: Does she stand by her statement at the third reading in the Crown Minerals (Petroleum) Amendment Bill about existing permits that “There are 100,000 square kilometres of permits out there for exploration. That’s the size of the North Island.”, and, if so, why are additional areas for exploration still being approved?
Hon Dr MEGAN WOODS: I stand by that statement in as far as it was correct at the time that I made it in 2018. There is no longer that size of number of remaining permits that are remaining. I would point the member to the fact that the only permit decisions that have been made have been made under the legislation that was passed with unanimous support of all the parties that made up the last Government, including the Green Party, around permits that were granted under those decisions.
Hon Julie Anne Genter: Do previous decisions to continue to allow exploration onshore in Taranaki take into account the statements made last year by the International Energy Agency director that no new oil, gas, or coal can continue if we are going to address the climate crisis?
Hon Dr MEGAN WOODS: There has been no further block offer to date after the decision that was made in 2018 to guarantee the permits for 2018, 2019, and 2020 to go ahead. There has not been an issuing of a subsequent block offer.
Hon Julie Anne Genter: How is exploring for new fossil fuels consistent with our climate commitments, when there are already more known fossil fuel reserves globally than we can use within the remaining 1.5 degrees Celsius of warming?
Hon Dr MEGAN WOODS: The reason that our Government last term made the decision to end the issuing of offshore oil and gas permits was for precisely the reason that we could have a managed and just transition away from oil and gas exploration in Taranaki.
Hon Julie Anne Genter: Is the Government intending to amend the purpose of the Crown Minerals Act to reflect the Government’s commitment to taking action on the climate emergency?
Hon Dr MEGAN WOODS: As I outlined to the member in the answer to the primary question, the purpose statement of the Act was part of the public consultation document. It’s very clearly set out in the consultation document. That consultation, of course, closed in January or February 2020. The decision was made after the lockdown concluded to prioritise the piece of work around decommissioning. But as I also told the member, the rest of tranche two, including the purpose statement, is work that has been progressing and announcements will be made in due course.
Hon Julie Anne Genter: Will the announcements about changes to the purpose of the Crown Minerals Act be made soon, given it’s been over two years since public consultation closed and, obviously, there have been further developments in our understanding of the climate crisis and the need to act urgently to stop new fossil fuel exploration?
Hon Dr MEGAN WOODS: As I’ve outlined both in the primary and in subsequent supplementary questions, yes, there will be announcements around tranche two imminently. I would remind the member that although consultation did close nearly two years ago, there have been significant events in New Zealand during that time and the decision was made to prioritise and pull out separately the piece around decommissioning.
