Source: New Zealand Government
The Government is partnering with 15 more businesses to stop burning fossil fuels, resulting in the equivalent of taking 14,200 cars off the road, Minister of Energy and Resources Megan Woods has announced.
The latest round of Government Investment in Decarbonising Industry (GIDI) funding was made by Prime Minister Chris Hipkins and Megan Woods at the Auckland-based NZ Sugar Company (Chelsea Sugar) – a round two recipient of contestable GIDI co-funding focused on process heat.
“Today we are announcing we’re partnering with 15 more businesses that are high energy users to help them reduce their reliance on fossil fuels, and slash our carbon emissions faster,” Megan Woods said.
“The projects announced today will reduce carbon emissions by 38,354 tonnes each year, which is equal to taking approximately 14,200 cars off the road – that’s more than the total number of cars in Wanaka.
“Industrial energy, like coal boilers, make up about a quarter of all New Zealand’s energy-related emissions. Working with businesses to reduce their emissions is a pragmatic policy that is delivering results.
“So far we have co-funded 66 major industrial decarbonisation projects in total, with all set for completion by December 2027.
“These projects are anticipated to reduce carbon emissions by 391,017 t of CO2 per year, the equivalent of to taking approximately 144,700 cars off the road – more than all the petrol vehicles in Hamilton.
“GIDI is great value for money. For the size of the investment, we are seeing significant emissions reductions, with the programme estimated to deliver projects that will make up around 17 percent of our total emissions reductions between 2022 and 2025.
“By partnering with business we are speeding up the transition to clean energy while reducing New Zealand’s emissions faster than they otherwise would.
“Many businesses – like NZ Sugar Company Limited (Chelsea Sugar) – have been bold and are actively finding ways to decarbonise their business. By targeting the activities that create the most emissions, companies can significantly lower their carbon footprint and hit their climate targets faster.
“This fund shows that we can decarbonise without having to de-industrialise our economy. Companies are producing the same products but now have the added bonus of producing them with clean energy,” Megan Woods said.
Climate Change Minister James Shaw says with New Zealand experiencing the reality of climate change right now, that every tonne of climate pollution that is stopped matters which is why today’s announcement, alongside the 300 actions of the Emissions Reduction Plan, is so important.
“If anyone needed a basic rule of thumb for dealing with the climate emergency, it would be to stop burning fossil fuels. It is great to see three sawmills switching from burning fossil fuels to using woody biomass-fuelled boilers which utilise waste products for fuel.” James Shaw said.
