New Zealand’s environmental credentials are under threat as the government prioritizes economic growth over green reforms. Prime Minister Christopher Luxon’s coalition is reversing bans on oil exploration, delaying agricultural emission pricing, and promoting more mining, all in an effort to boost the struggling economy.
With New Zealand’s economy growing at just 0.3% in the year leading up to March 2024, the government is facing challenges, including a high current account deficit of 6.8% of GDP. These decisions mark a significant shift in policy to focus on increasing exports and revitalizing the economy, despite concerns about the impact on the environment.
As New Zealand seeks to recover from the economic impact of the COVID-19 pandemic, tensions between economic growth and environmental sustainability are coming to the forefront. The country’s green reputation is at stake as the government works to deliver on promises to voters and stimulate economic activity.