Watch: Have climate policies put trade at risk? Trade Minister Todd McClay responds

Thursday, 27 November 2025

New Zealand’s Government insists rolling back climate commitments and supporting gas projects will not jeopardise free trade agreements. But concerns from key trading partners, revealed by Three News, suggest the policy shift is being scrutinised.

Trade Minister Todd McClay says he would be told if our trading partners were seriously worried about recent backtracks on climate policies and pledges. And he says he, personally, hasn’t been told.

As Stuff revealed on Thursday, the New Zealand Government has been made aware of concerns from trading partners who are worried that the country could be scaling back its commitments to combating climate change.

Of particular concern for the United Kingdom, which has a valuable free trade deal with New Zealand, is the Government’s recent moves to restart oil and gas exploration - and to provide $200 million in financing for gas companies.

New Zealand has signed free trade deals with the European Union, UK, and other countries which include commitments, from New Zealand, to continue work to combat climate change.

These deals are worth billions of dollars, each year, to Kiwi exporters - who are already paying tens of millions less in duties and tariffs.

If the countries thinks we’ve broken climate commitments, these trade deals give them the ability to try and sanction New Zealand.

McClay’s office initially told Stuff that it was not aware of any concerns from trading partners about the Government’s new policies related to oil, gas and climate change.

“The issues were not raised at the Environment and Climate Change Sub-Committee meeting in May 2025,” a spokesperson said.

Trade Minister Todd McClay says there is no risk New Zealand could face sanctions over its climate policies.

That was despite three UK ministers saying their government had raised concerns with New Zealand.

And the British High Commission, in Wellington, confirmed it had done so.

A spokesperson in Wellington told Stuff: “The UK raised the issue of oil and gas developments with New Zealand on several occasions, including following New Zealand's Budget 2025 announcements after the Environment and Climate Change Sub-Committee meeting in May 2025.”

Stuff put those concerns to McClay on Thursday.

He said that nothing had been escalated to him. And he said that should offer reassurance to New Zealand exporters, as he had recently met with European Union Trade Commissioner Maroš Šefčovič and would soon meet with UK Trade Minister Sir Chris Bryant.

The Government has cut its 2050 methane reduction targets from up to 47% to as low as 14%, saying it’s a practical move to protect farmers and rural communities. Critics say it could breach New Zealand’s climate commitments under the Paris Agreement.

Bryant was one of those ministers who told the UK Parliament that “The UK raised the issue of oil and gas developments with New Zealand on several occasions”.

McClay said that if there were serious concerns from the UK, it would be brought up at a minister-to-minister level.

“If officials are concerned, and their minister doesn’t raise it, then actually it may not be as important as some are suggesting.

“But I again, I will have another opportunity before the end of the year to meet with the UK trade minister.

“He is welcome to raise it and I will tell him, as I have told everyone else, it is for New Zealand to meet our obligations. We are commuted to it. We are doing so and we are within the bounds of our trade agreements,” he said.

As well as the oil and gas changes, McClay and Climate Minister Simon Watts halved New Zealand’s methane reduction target last month. That change would impact how quickly New Zealand would need to reduce its agricultural emissions.