Budget boosts Carbon Neutral Government commitment

Climate Change
  • Budget 2021 delivers $67.4 million to support the transition to a carbon neutral public sector by 2025
  • State Sector Decarbonisation Fund receives significant boost to support more schools, hospitals and other government organisations to replace coal boilers with clean alternatives
  • Funding boost will also accelerate the Government’s ‘electric vehicles first’ policy with $41.8 million for the leasing of low emissions vehicles across the public sector
  • Additional 76,000 tonnes of carbon emissions saved over 10 years

Budget 2021 helps deliver on the Government’s commitment to a carbon neutral public sector by 2025.

“A carbon neutral public sector is a key part of this Government’s plan to address the climate emergency. Budget 2021 sets us firmly on the path to achieving that goal,” Minister of Climate Change James Shaw said in a pre-Budget announcement.

“We’re putting tens of millions of dollars into clean energy projects in public organisations across Aotearoa, helping to create jobs and support our recovery from COVID-19.”

Budget 2021 delivers a total of $67.4 million over four years to implement the Carbon Neutral Government Programme. This includes a significant boost of $19.5 million to the successful State Sector Decarbonisation Fund, and $41.8 for leasing low emissions vehicles.

“Boosting the State Sector Decarbonisation Fund means we can replace more coal boilers in schools and hospitals saving an additional 44,000 tonnes of carbon emissions over ten years.

“We are also providing $41.8 million for the leasing of low-emissions vehicles across the public sector, which will save a further 32,000 tonnes of carbon emissions over ten years.

“This Government’s successful management of COVID-19 not only means the economy is in better shape than expected, but that we’re in a position where we can think ahead to the type of public sector we want for future generations - a future where children are learning in classrooms powered by clean energy, rather than coal; where nurses and doctors can look after our loved ones in hospitals that run on climate-friendly energy; where social workers and midwives can visit people in electric vehicles, and where people can access essential local services in clean, energy-efficient buildings.

“Because of this Budget I am confident that this vision is closer within reach than ever before,” James Shaw said.

“Over the last three Budgets we have made significant investments in Aotearoa New Zealand’s low-carbon future, including climate-friendly transport options, like public transport and major cycling projects.

“We are now leading by example and committing support from Budget 2021 to measure and report emissions across government, upgrade public organisations to cleaner sources of energy, cut emissions from transport, and improve the efficiency of government buildings.

“Government investments are always about choice. The choice we are making in Budget 2021 is to pass on to our children and grandchildren a world that is better for what we did,” James Shaw said.

Further information

The State Sector Decarbonisation Fund has committed funding for 422 electric vehicles and charging infrastructure; and clean energy upgrades at 36 schools, 7 universities and 10 hospitals.