<
https://reneweconomy.com.au/legal-questions-raised-over-climate-conflict-of-200-million-fossil-fuel-fund/>
"One of New Zealand’s trading partners is investigating whether the creation of
an investment fund for gas producers breaches a “sustainable” free trade
agreement that explicitly blocks new fossil fuel subsidies, the deputy leader
of the Greens says.
Last week the New Zealand Greens released legal advice suggesting that the
government’s $200m (AUD$185.49) investment fund to encourage domestic gas
exploration violated the terms of the Agreement on Climate Change, Trade and
Sustainability (ACCTS) signed with Costa Rica, Iceland and Switzerland.
Signed in November 2024, the “sustainable” free trade deal removed tariffs on
wood and wool products, two significant sectors in New Zealand’s
export-dependent economy, and was presented as a win for the new government.
A legal opinion by Barrister Nura Taefi KC finding that the $200m fund “falls
within the definition of a prohibited fossil fuel subsidy” of the Agreement on
Climate Change, Trade and Sustainability (ACCTS) as “it involves a financial
contribution by the government targeting the exploration, extraction, refining
and/or processing of a fossil fuel, which will confer a benefit by way of a
cost reduction for co-investors.”
The government rejected claims the decision compromised New Zealand’s
reputation internationally or violated the terms of its trade agreements last
week. Trade Minister Todd McClay insisted the country was compliant with the
agreement and dismissed concerns raised by the Greens as “scare-onomics”.
However, Deputy Greens leader and climate change spokesperson Chlöe Swarbrick
said on Wednesday an embassy of the countries affected had contacted her to
discuss the matter.
She would not say which country, as a meeting had not yet taken place, but said
it was a sign that New Zealand’s international reputation was at risk.
“It is quite clear the government did not get any advice, do any due diligence
or just didn’t do the work,” Swarbrick said. “The same week we released that
legal advice, Prime Minister Christopher Luxon was offshore talking about the
importance of our international reputation and the relationships we were
building.”
“All the while, at home, he’s undermining domestic climate policy.”"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
