New Zealand climate policy faces EU trade complaint

Greenpeace Aotearoa has joined a formal complaint lodged by the Dutch organization Both ENDS against New Zealand regarding its climate policy. The complaint, submitted to the European Commission, alleges that New Zealand is failing to comply with sustainability clauses within the EU-NZ Free Trade Agreement.

The agreement, signed in 2023, requires both parties to effectively implement the Paris Agreement and refrain from actions that materially defeat its objectives. Greenpeace Aotearoa Executive Director Dr. Russel Norman stated that the New Zealand government has spent three years undermining environmental laws to gain trade benefits, describing the situation as a ‘race to the bottom’ on regulation.

Legal experts note that this serves as a significant test case for how environmental sustainability is integrated into trade policy. If the complaint is upheld following a multi-step evaluation process, New Zealand could face sanctions, including the potential loss of preferential access to the European market.