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New Zealand’s Exclusive Economic Zone consultation questions and answers

The Exclusive Economic Zone

What is the Exclusive Economic Zone (EEZ)?

The EEZ is the area of sea and seabed that extends from 12 to 200 nautical miles offshore.

Does New Zealand have sovereignty over the EEZ?

No. Under the United Nations Convention on the Law of the Sea, New Zealand has full sovereignty in the territorial sea (0 to 12 nautical miles from the coast), largely equivalent to that over the land.

New Zealand has a more limited set of ‘sovereign rights’ in the EEZ.  These rights are for the purpose of exploring, exploiting, conserving and managing the living and non-living resources of the EEZ.

Sovereign rights are subject to various conditions and obligations, such as international controls on marine transport and pollution, the right of any state to lay submarine pipelines and cables, and freedom of navigation.

What activities happen in the EEZ?

The major activities are fishing, transport, petroleum exploration and mining, and scientific research. Submarine cables and pipelines are also placed for telecommunication purposes.

What types of activity might happen in the EEZ in the future?

The EEZ is an expensive and challenging place for new activities due to the depth of water, exposed conditions, and distance from the shore. Future types of activity could include seabed mining, energy generation, aquaculture, and carbon capture and sequestration.

Are offshore islands included in this policy work?

No. Offshore islands are considered part of New Zealand’s land territory, and New Zealand has sovereignty over these islands. As such, there is a 12 nautical mile territorial sea zone around each island, the same as that around New Zealand’s ‘main’ islands. These islands are subject to the Resource Management Act 1991.

What is our extended continental shelf? Do these policy proposals apply to it?

The extended continental shelf is where New Zealand’s continental shelf extends beyond the 200 nautical mile EEZ.

New Zealand submitted the coordinates for the outer limits of its extended continental shelf to the United Nations Commission on the Limits of the Continental Shelf in April 2006. The Commission is currently considering New Zealand’s submission.

New Zealand has sovereign rights for exploring and exploiting the natural resources of the continental shelf, including where it extends beyond the EEZ. 

As far as possible under international law, an improved EEZ regulatory regime for environmental effects could also apply to the extended continental shelf seabed and subsoil resources (e.g. minerals).

The seas above the extended continental shelf are international waters so – unlike in the EEZ – New Zealand has no special rights to the fisheries in this area or to regulate other activities such as shipping.

Policy proposals in the discussion paper

Why is this policy needed?

The EEZ has a wide range of biodiversity values and economic opportunities. The discussion paper proposes new legislative mechanisms focused on filling key gaps in environmental regulation, so that all the environmental effects of current and future activities are covered.

The key gaps are:

  • gaps and inconsistencies in the operational control of environmental effects;
  • unclear environmental outcomes against which activities and their effects are assessed;
  • uncertainties for investors about the regulations relevant to them;
  • uncertainties about how the effects of activities on each other should be managed.

The pressure to improve the regulation of environmental effects will build over time as activities increase in number and variety.  There is a window of opportunity now to improve the regulatory regime before the need becomes urgent.

What outcomes are proposed for management of the EEZ?

It is vital that we safeguard the integrity of EEZ ecosystems. It is also important to promote the sustainable management of resources, encourage the development of sustainable marine industries, and enable resources to be used or protected to provide for the greatest national benefit.

What legislation currently covers the EEZ? What are the gaps?

Laws in the EEZ regulate specific activities. Fishing and maritime transport and safety, for example, have comprehensive legislative coverage. This sectoral approach, however, means there are gaps and inconsistencies for regulating environmental effects. The key gaps are assessment of non-fishing activities on seafloor life and habitats (e.g. through potential seabed mining) and direct effects on life in the water column (e.g. effects of seismic surveys on marine mammals).

What are the key things being proposed?

The discussion paper proposes new or amended legislation to fill key gaps in EEZ environmental regulation. The paper also promotes a consistent approach to environmental management across different statutes. The focus of the proposals is on the environmental effects of activities not covered by existing statutes, such as seafloor disturbance by the installation of a structure, or by mining.

The proposed legislation will define, through rules, the thresholds for when activities can proceed without any need for assessment. The proposed rules will also define those activities that require assessment and approval through an “EEZ consent”.  An EEZ consent would be akin to a resource consent on land or a coastal permit in the territorial sea (which extends from the 0 to 12 nautical miles off the coast).  The process for considering an EEZ consent would be scaled to the size of the proposal.  There will also be the ability to make further rules that could apply to specific areas or activities, enabling more strategic development of rules over time as information improves.

Rules could be developed to address existing gaps in the regulatory framework. Alternatively, rules could be developed to apply more widely and cover activities currently regulated under laws such as the Fisheries Act 1996 and Maritime Transport Act 1994.

The discussion paper proposes that Ministers or agencies with decision-making powers in the EEZ would be consulted when applications for EEZ consents are being considered and when rules are developed.  The proposals aim to achieve consistency of decision-making across statutes and to address cumulative effects.

Authorisation of activities would involve limited use of the space or resources required to undertake the activity.  The government intends that this use would only be necessary for the duration of the project, and only continue so long as environmental criteria are met.

The discussion paper proposes that the effects of a proposed activity on existing activities be assessed and addressed.  These proposed activities could be ones regulated under an existing law (e.g. fishing), or applications under this new regime for the same space or resource.

Do the proposals affect fishing?

These proposals are focusing on gaps in regulating environmental effects. Fishing is regulated under the Fisheries Act 1996. However, rules could be developed that apply not just to existing gaps in the regulatory framework but also more widely and cover activities currently regulated under existing laws. The paper asks whether such an approach is necessary.

The proposals do not place any new controls on fishing. New activities in the EEZ may, however, have some effect on fishers, e.g. the exclusion zone around an offshore oil platform. As policies are developed, the way in which these impacts can be addressed when considering new activities will be looked at.

The policy will need to address the impacts of any new non-fishing activities on existing fisheries closures and marine protected areas.

How do other countries regulate environmental effects in the EEZ?

Internationally, there are a wide range of approaches to regulating environmental effects in the EEZ. Countries pass different laws in response to different pressures. In Australia, for example, permission is required from Environment Australia to undertake any activity in the EEZ that has significant environmental impacts. This includes activities already managed under fisheries and minerals legislation.

What is happening with oceans policy in general?

The government has decided that work on oceans policy should focus in the short term on the most pressing marine problems. Oceans policy is currently focusing on improving the regulation of environmental effects in the EEZ.

The consultation process and next steps

What will happen once the consultation has finished?

The Ministry for the Environment will lead work to report to the government in late 2007 with a summary of submissions and detailed policy options. The government will then make decisions on next steps.

When will new policy come into force?

The government will make final decisions about the policy and consider timing when the consultation is complete.

Last updated: 12 October 2007