NZ Supreme Court: Climate Change Mandatory in Resource Permits

# NZ Supreme Court: Climate Change Mandatory in Resource Permits ## Landmark Victory for Climate Action and Indigenous Rights The New Zealand Supreme Court delivered a landmark judgment confirming that climate change is a **mandatory relevant consideration** when ministers decide whether to offer petroleum exploration permits for tender, establishing a critical precedent for environmental protection and Treaty rights. ### The Victory In *Climate Clinic Aotearoa Incorporated v Minister of Energy and Resources* [2025] NZSC 197, the Supreme Court unanimously agreed with appellants on several key legal arguments: 1. Climate change is a **mandatory** relevant consideration when deciding whether to offer permits for tender 2. The Crown Minerals Act's purpose requires assessing whether mineral exploitation truly benefits New Zealand 3. Treaty principles (Te Tiriti o Waitangi) require consideration of climate impacts on Māori 4. Section 5ZN of the Climate Change Response Act may become mandatory in certain contexts ### Legal Framework Established **Key Reasons for Mandatory Consideration:** - Petroleum extraction and consumption are major contributors to greenhouse gas emissions - Climate change is an issue of "pressing concern for New Zealand" - New Zealand has "binding commitments which require a drastic reduction of its greenhouse gas emissions" - No comprehensive regime existed for addressing climate implications of ongoing petroleum exploration ### Crown Minerals Act Interpretation The Court ruled that the Act's purpose clause is not simply recognizing mining benefits, but a directive to promote exploration and mining **only if** it is for New Zealand's benefit. This includes assessing whether all mineral exploitation necessarily serves New Zealand's interests. > "If there are other matters not dealt with in other regulatory frameworks that are of obvious relevance to the 'benefit of New Zealand' assessment, then the Minister may be required to address those matters" ### Treaty Principles The judgment emphasized that: - Climate change impacts Māori disproportionately due to "political and economic marginalisation, loss of land and resources, human rights violations, discrimination, and unemployment" - Decision-makers **must** consider climate impacts on Māori beyond directly affected regions - Section 4 of the Crown Minerals Act requires decision-makers to "have regard to the principles of the Treaty" ### Actionable Strategy This ruling provides a clear legal framework for challenging resource extraction permits that fail to adequately consider: 1. Climate change impacts 2. Whether the project truly benefits the nation 3. Disproportionate impacts on Indigenous peoples 4. Binding international climate commitments **Published:** December 19, 2025 **Source:** Lawyers for Climate Action NZ