Greenpeace is not satisfied with the proposed $1.2 billion oil industry insurance cover meant to protect taxpayers in the event of an oil spill, Newshub reports.

In June, Associate Transport Minister Julie Anne Genter announced the $1.2 billion maximum level of insurance for the oil industry, which would require oil companies to hold levels of insurance proportionate to the risk posed by an oil spill.

The proposed law is expected to dramatically increase the amount of insurance that oil and gas companies are required to hold, which is currently only $27 million.

However, Amanda Larsson, a Greenpeace campaigner, said that the proposed $1.2 billion was still “too low” – so Kiwis would still end up footing the bill in the event of a major oil spill.

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Genter reasoned that it’s unlikely for a major oil spill to occur. However, if one did take place, she said it would definitely have significant environmental, financial, and even cultural impacts.

She added that it would even cost tens or even hundreds millions to clean up –with the estimated financial insurance for current production installations in Taranaki being $170 million to $360 million.

However, Larsson pointed out that clean-up costs, charges, and penalties could cost oil companies significantly more than Genter’s estimates – as seen in the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, which was considered to be the largest marine oil spill in the history of the petroleum industry.

As of 2018, the incident had cost BP, the British multinational oil and gas company responsible for the major spill, more than US$65 billion.