This could mean taxpayers would compensate corporations if exploration is unsuccessful. Resources Minister Shane Jones has stressed that no decision has been made yet, but the government accepts commercial exploration for new gas resources is unlikely without state support.

However, subsidising fossil fuel activities seems contrary to New Zealand’s recent international commitment to phase out incentives for the industry. It is also difficult to square with the government’s climate strategy to make clean energy abundant and affordable for everyone, announced last week as part of the second Emissions Reduction Plan for 2026–30.

Helping corporations potentially exploit new fossil fuel resources, thereby adding greenhouse gas emissions, may also be contrary to the government’s obligations under international human rights law.