New Zealand abandons clean green policies to save its economy

​New Zealand's green credentials are at risk after the government decided to roll back environmental reforms in a bid to boost a faltering economy and fulfill promises to voters.

New Zealand Prime Minister Malcolm Lacson's center-right coalition said Monday it would lift a ban on oil and gas exploration, delay pricing carbon emissions from agriculture for five years and encourage more mining, Reuters reported.

This is part of the New Zealand government's shift in focus to increasing exports to support the economy. New Zealand's economy grew by just 0.3 per cent in the year to March, the lowest rate for the same period since the coronavirus pandemic began in 2020, and the current account deficit was 6.8 per cent of gross domestic product.

Exports account for nearly a quarter of New Zealand's economy.

Resources Minister Shane Jones said: "The current economic situation is arguably the worst in my adult memory. Therefore, we must recognize the harsh economic conditions and seize the opportunity to promote the mining Renaissance."

Farmers and businesses have welcomed the government's environmental policy reversal, while environmentalists have criticised the coalition's policy as short-sighted.

Agriculture, including fishing, contributes 5% of New Zealand's GDP and accounts for about 80% of New Zealand's total exports. Farmers who helped Lacson win election last year say environmental policies will make dairy and meat too expensive to produce.

Forest and Bird chief executive Nicola Toki said: "They are not thinking about the pros and cons of the policy and the fact that abandoning conservation for a quick buck will hit the economy and put the future prosperity of future generations of New Zealanders at risk."

New Zealand's agricultural carbon pricing scheme was proposed by then-Prime Minister Jacinda Ardern in 2022 and was due to be implemented from 2025.