NZ’s $200M Gas Fund Sparks International Climate Clash

🛢️ NZ’s fossil fuel reboot may breach a “sustainable” trade pact.The Green Party has released legal advice claiming the $200 million gas fund announced by New Zealand’s government violates the Agreement on Climate Change, Trade and Sustainability (ACCTS) — a deal banning new fossil fuel subsidies.

• KC Nura Taefi says the fund "clearly qualifies as a prohibited fossil fuel subsidy" under ACCTS.

• It offers a cost advantage to gas explorers — which could trigger penalties, including tariff reinstatements if the pact were fully in force.

🛑 Govt Response:Trade Minister Todd McClay calls the claim “scare-onomics”, denies any breach, and insists NZ is compliant. But one of the ACCTS partner countries has reportedly contacted the Greens — signaling potential diplomatic fallout.

• ✅ 35+ climate policies scrapped

• ✅ Oil & gas exploration ban overturned

• ✅ Quiet exit from the Beyond Oil & Gas Alliance

• ✅ New fund backed by NZ First’s Shane Jones:“Natural gas will be critical for the next 20 years.”

🌲 Meanwhile: The government promotes pine tree planting as a core climate plan, despite criticism of its effectiveness.

⚖️ Two legal challenges have already been filed over the government’s climate u-turn — alleging it’s illegal and regressive.

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