The Crown Minerals Bill will put at risk the nation’s energy transition and future by taking us back to fossil fuels by reopening exploration for oil and gas and promoting mining.

The Bill was introduced to Parliament today, Wednesday 25 September 2024.

ECO’s Cath Wallace said climate change, our global commitments and our obligations to future generations mean that this Bill should be rejected.

The reason for not promoting fossil fuels is precisely because they put at risk New Zealand’s and the planet’s future. If fossil fuel explorers ever do find more gas or oil, it would take well over a decade to bring this to market.

Continuing fossil fuel supply will also crowd out renewable energy and innovation. Any investment in fossil fuels will reinforce misallocation of investment and cause more stranded assets. There will be too little investment in renewable energy and batteries to establish a resilient electricity system.

The Bill ignores the flaws in the electricity market which have prevented the construction of many hundreds of megawatts of renewable energy projects that have already been consented under the Resource Management Act.

There is also a huge risk to New Zealand as a nation from Resources Minister Shane Jones who seems to be drunk on his own rhetoric. In declaring that miners are welcome, he misleads investors.

Prime Minister Luxon and Finance Minister Willis should both publicly reject this Bill and specifically rule out expectations for exploration and mining of fossil fuels; and minerals activity on, in or under conservation land or other sensitive environments.

They should also ensure that there is no scope for Jones’ rhetoric to create expectations such that would-be miners can sue New Zealand if permits are denied. At least one company operating in New Zealand is suing the Australian government for hundreds of billions of dollars.

This Bill takes us backwards, not forwards. It should be withdrawn. That would put New Zealand first, not New Zealand last.

“This Bill has been introduced in the same week that world leaders at the UN are calling for transitioning away from fossil fuels and greater investment in renewable energy to tackle climate change.”1

“The Bill contains many different provisions which should not be accepted. These include:

• large scale “hobby” gold mining in waterways and coastal areas covering up to 50 hectares: which is clearly not small-scale;
• Allowing mineral activity in conservation land in Taranaki;
• Weakening the 2021 obligations on permit holders to decommission and clean-up petroleum mining sites;
• Extending the secrecy provisions in the Act to 21 years;
• Making the Minister an advocate for the mining Industry when actually the government’s role is regulation and management.
• Provisions for establishing Government Policy Statements with no public process or engagement process contrary to good public practice.”

“The Government parties have restricted the report-back date to 31 October 2024. This would allow at most 2 weeks for public submissions. That is grossly undemocratic and inadequate given the complexity of the issues raised in the Bill.

These issues include the impact of the Bill on: our climate change obligations, risks to the environment, disruption of existing businesses and communities, and risks to the public purse.

Select Committee consideration is supposed to take 6 months including public submissions, consideration of evidence and argument, advice and responses from officials, deliberations, and the report back.”

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ECO has had a long involvement in mining issues and has pressed for the need for legislation that protects biodiversity, phases out fossil fuels, and recognises alternative sources of minerals including recycling.

1. UN Summit for the Future, Pact for the Future, Global Digital Compact, and Declaration on Future Generations. September 2024.

The statement recognises:

“Climate change is one of the greatest challenges of our time, with adverse impacts that are disproportionately felt by developing countries, especially those that are particularly vulnerable to the adverse effects of climate change. We commit to accelerate meeting our obligations under the United Nations Framework Convention on Climate Change and the Paris Agreement.”

“Further recognize the need for deep, rapid and sustained reductions in greenhouse gas emissions in line with 1.5 degrees Celsius pathways and call on parties to contribute to the following global efforts, in a nationally determined manner, taking into account the Paris Agreement and their different national circumstances, pathways and approaches: tripling renewable energy capacity globally and doubling the global average annual rate of energy efficiency improvements by 2030; accelerating efforts toward s the phase-down of unabated coal power; accelerating efforts globally towards net zero emission energy systems, utilizing zero- and low-carbon fuels well before or by around mid-century; transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science;” etc.

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