The government's decision comes at a time of economic challenges for the country as the economy grew just 0.3 percent last fiscal, its lowest rate since the pandemic
New Zealand's environmental reputation is under threat as Prime Minister Christopher Luxon's government rolls back several key environmental reforms in a bid to revive the country's economy. Since taking power last year, the centre-right coalition has reversed a ban on oil and gas exploration, delayed the pricing of agricultural emissions by five years, and encouraged more mining, aiming to bolster exports and stimulate growth, reported Reuters.
The government's decision to roll back environmental reforms comes at a time of economic challenges for New Zealand. The economy grew just 0.3 percent in the year to March 2024, its lowest rate since the pandemic. The current account deficit stands at 6.8 percent of GDP, and exports, which constitute nearly a quarter of the economy, are pivotal to the government's strategy. The agricultural sector, contributing 5 percent to the economy and 80 percent of exports, has been a key focus. Farmers, who were instrumental in Luxon's election victory, argued that reversing the environmental policies would have made dairy and meat production prohibitively expensive.
However, while farmers and companies have welcomed these changes, environmentalists have criticized the government for what they see as short-sighted policies. Last week, Air New Zealand dropped its 2030 emissions target, citing delays in acquiring new aircraft and the high costs of eco-friendly fuel. The opposition Green Party, a significant voice in the environmental debate, expressed concern that the government's