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The Crown Minerals (Petroleum) Amendment Act passed its third reading in Parliament on Wednesday with 63 votes in favor and 55 against, New Zealand Herald reported.
"The whole world is going in this direction," Ardern said. "We all signed up to the Paris agreement that said we're moving towards carbon-neutrality, and now we need to act on it."
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New Zealand's next prime minister Jacinda Ardern has set ambitious environmental policies to confront a warming planet.
"I do anticipate that we will be a government, as I said during the campaign, that will be absolutely focused on the challenge of climate change," said Ardern, whose Labour party has signed a coalition agreement with the New Zealand First party.