Govt no longer backs fossil fuel phase out

The government has confirmed New Zealand’s withdrawal from the Beyond Oil and Gas Alliance (BOGA). 

BOGA is an international group committed to ending fossil fuel production and burning.

The move follows the repeal of New Zealand’s ban on new offshore oil and gas exploration. And it comes after the government announced a $200 million fund to support gas field developments.

Climate Change and Energy Minister Simon Watts says the decision was formalised on June 21st. 

New Zealand joined BOGA as an associate member in 2021 under the previous Labour government.

Watts says the decision reflects the need to secure long-term energy reliability for New Zealand, particularly amid warnings of a future gas shortage.

“I make no apology that my primary focus is to ensure that we can keep the lights on for New Zealanders,” he told media. 

He says natural gas will act as a transition fuel until more reliable alternatives are available. He added that New Zealand still has one of the most renewable heavy electricity systems in the world.

BOGA is co-led by Denmark and Costa Rica, with members including France, Ireland, Portugal, Spain, Sweden, and some Pacific nations.

The decision to leave has drawn criticism from the Green Party and environmental groups including Greenpeace and WWF NZ. They say it undermines the country’s international reputation and its prior climate commitments.

Watts rejects that view, saying the government remains committed to emissions targets under the Paris Agreement.

While the move has no direct impact on the transport sector, it signals a broader shift in energy policy that could influence future fuel supply, pricing, and emissions settings.

A new national energy strategy is currently under development.