In a landmark environmental law decision, the Supreme Court of New Zealand ruled on December 19, 2025, that the government is legally required to consider climate change implications when offering permits for oil and gas exploration. The case, Climate Clinic Aotearoa Inc v Minister of Energy, challenged the process by which the state awards fossil fuel tenders.
The government had argued that under the Crown Minerals Act, the decision to open land for exploration should focus on economic benefits, with climate considerations deferred to later regulatory stages such as drilling consents. The Supreme Court unanimously rejected this approach. The Justices held that the statutory requirement to manage resources for the "benefit of New Zealand" inherently includes the country’s existential interest in mitigating climate change and meeting international emissions targets.
The Court reasoned that offering land for drilling initiates a causal chain leading to emissions; therefore, ignoring climate impact at the tendering stage renders the decision unlawful. While the Court dismissed the specific appeal against past permits—finding that the former Minister had, in fact, considered climate advice despite believing she wasn't bound to—the ruling sets a binding precedent for the future. All future Ministers must now conduct a rigorous, explicit assessment of how any new exploration aligns with New Zealand’s net-zero goals, effectively integrating environmental obligations directly into resource management statutes.
Source: RNZ