NZ takes more action to reduce carbon emissions

Tāmaki Makaurau - Aotearoa’s government is partnering with 15 more businesses to stop burning fossil fuels, resulting in the equivalent of taking 14,200 cars off the road.

The latest round of decarbonising funding was made at Auckland-based Chelsea Sugar.

Minister of energy and resources Megan Woods says the 15 businesses are high energy users and the funding will help them reduce their reliance on fossil fuels.

The projects will reduce carbon emissions by 38,354 tonnes each year, which is equal to taking approximately 14,200 cars off the road, 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, Woods says.

“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 tonnes 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 (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, 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.

Chelsea Sugar recently completed the installation of a new heat recovery system, using mechanical vapour recompression, to reduce steam demand, as well as switching from gas to electricity, reducing their overall emissions by 10 percent. This will see a reduction in carbon emissions by about 2,700 tonnes a year.