September 19th, 2024
The government has unveiled a partnership with 15 high-energy-consuming businesses in a bid to reduce their reliance on fossil fuels and slash carbon emissions, according to a media release on Wednesday.
Energy and Resources Minister Megan Woods declared that the latest round of Government Investment in Decarbonising Industry (GIDI) funding would help decrease carbon emissions by 38,354 tonnes per annum, which is equivalent to taking 14,200 cars off the road.
The partnership was announced at the Auckland-based NZ Sugar Company (Chelsea Sugar), a round two recipient of contestable GIDI co-funding focused on process heat. Woods highlighted that industrial energy, such as coal boilers, accounts for approximately a quarter of New Zealand's energy-related emissions. By working with businesses, the government aims to reduce emissions through pragmatic policies that deliver tangible results.
The government has co-funded 66 major industrial decarbonisation projects so far, with all set for completion by December 2027. These projects are expected to reduce carbon emissions by 391,017 tonnes of CO2 per year, equal to taking about 144,700 cars off the roads. This figure represents more than all the petrol vehicles in Hamilton.
Woods emphasised the value for money provided by the GIDI programme, which is estimated to deliver projects accounting for 17% of New Zealand's total emissions reductions between 2022 and 2025. By partnering with businesses, the government aims to accelerate the transition to clean energy while reducing the nation's emissions more rapidly.
Climate Change Minister James Shaw highlighted the importance of every tonne of climate pollution that can be stopped, especially given the current reality of climate change in New Zealand. He praised the initiative of three sawmills switching from burning fossil fuels to using woody biomass-fuelled boilers that utilise waste products as fuel.
The partnership demonstrates that it is possible to decarbonise without having to de-industrialise the economy. Companies can continue to produce the same products with the added advantage of using clean energy, contributing to a more sustainable future for New Zealand.