New Zealand faces EU complaint over environmental obligations

Dutch environmental group alleges climate policy changes breached EU-NZ environmental commitments

New Zealand faces EU complaint over environmental obligations
European Commission

Dutch environmental group Both ENDS has lodged a complaint with the European Commission alleging that New Zealand has breached environmental obligations under its free trade agreement with the European Union.

Both ENDS lodged the complaint on 29 September 2026, through the European Commission’s Single Entry Point, making it the first complaint lodged through the mechanism on climate grounds. The Commission is examining the complaint against its published criteria.

The complaint alleged New Zealand breached two commitments under the EU-New Zealand Free Trade Agreement, which entered into force on 1 May 2024. Both ENDS alleged the government weakened environmental protections to encourage trade or investment, contrary to the agreement’s non-regression provisions, and failed to effectively implement the Paris Agreement.

Both ENDS said the complaint relied on New Zealand government records, including cabinet papers, regulatory impact statements, and treasury analysis, as well as material from the Climate Change Commission.

The group pointed to a series of government decisions since the agreement entered into force. These included lowering the 2050 methane target range, removing the legal backstop that would have brought agricultural emissions into carbon pricing, removing the requirement for Emissions Trading Scheme settings to accord with New Zealand’s Paris target, reopening offshore oil and gas exploration, and establishing a $200 million gas security fund.

The complaint also cited the Climate Change Response (Tort Liability) Amendment Act 2026, which has been in force since 25 August 2026. The legislation bars tort liability for harm caused by greenhouse gas emissions and applies retrospectively to proceedings not finally determined when it came into force.

Both ENDS argued that the reversal of the offshore exploration ban and the statutory bar on climate tort claims reduced environmental protections that existed when the trade agreement was signed and entered into force. It alleged government records connected both measures to attracting or protecting investment.

The group also alleged the measures collectively amounted to a failure to implement the Paris Agreement effectively. It pointed to the Climate Change Commission’s July 2026 monitoring report, which, according to the complaint, found the second emissions budget at significant risk, current plans insufficient for the third budget, and the 2030 methane target unlikely to be met.

Both ENDS asked the Commission to examine the complaint and raise the matter with New Zealand. It also asked the Commission to request formal consultations if the matter is not resolved and to initiate panel proceedings if consultations fail.

The complaint was accompanied by sponsor statements from the Environmental Law Initiative, Greenpeace Aotearoa, Ngāti Pūkenga Iwi ki Tauranga Trust, OraTaiao: New Zealand Climate and Health Council, Mike Smith, and Professor Emeritus Jane Kelsey. La Via Campesina Europe also supported the complaint.

The Commission will determine whether the complaint meets the requirements for further action. If the matter proceeds and cannot be resolved through discussions or formal consultations, the agreement provides mechanisms for further proceedings, including the potential suspension of trade benefits in specified circumstances.