A climate change expert says there's no proof a ban on new oil and gas exploration permits will increase emissions.

This comes after some have suggested the government's decision yesterday may be worse for the environment.

Business New Zealand says the country will have to get oil and gas from places with lower environmental standards.

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However Victoria University Senior Associate Adrian Macey told Mike Hosking that such fears are exaggerated.

"There is very little credibility actually in that argument. I think essentially, what the important thing the government's done it set this in the context of a transition, there's nothing abrupt about it."

Macey believes New Zealand will now see more money invested into renewable energy because they now look like a viable long term investment.

"We have to use fossil fuels for a while, yes - we can't just suddenly switch them all off. But the long-term future is renewables."

LISTEN ABOVE AS ADRIAN MACEY SPEAKS WITH MIKE HOSKING