New fund launched to reduce carbon emissions from coal and gas
The Labour Government is quickly delivering a key election policy that will help business to switch from fossil fuels like coal and gas to clean energy for process heat while accelerating the economic recovery from Covid.
The $70 million fund will allow business and industries to access financial support to switch away from boilers run on coal and gas, to cleaner electricity and biomass options.
“Reducing greenhouse gas emissions from process heat is win win for our climate and our recovery,” Prime Minister Jacinda Ardern said.
“The $70 million fund will create jobs and stimulate the economy while demonstrating our commitment to future proofing our recovery.
“It provides much needed financial support to business to assist with the often costly transition of plant and equipment to clean energy sources.
“The Interim Climate Change Commission recommended a focus on lowering emissions from process heat as a priority for decarbonising our economy.
I have set out that the economic recovery from Covid and addressing climate change are priorities for the new Government. This fund creates jobs while lowering emissions and is the exact sort of initiative that will help us to build back better from Covid,” Jacinda Ardern said.
“Process heat makes up around a quarter of New Zealand’s energy-related emissions and this fund will be key to reducing those emissions in the coming year,” Energy Minister Megan Woods said.
“The new fund will target New Zealand’s largest energy users to accelerate their uptake of electrification and other technologies that will dramatically lower emissions from this sector, and create clean energy jobs.
“The Energy Efficiency and Conservation Authority (EECA) will administer the investment fund, which is available to New Zealand-based businesses who demonstrate a commitment to decarbonising, and where Government co-investment will help remove barriers to accelerating their low-carbon goals.
“A minimum of $15m is available in the first round, which opens today.
“Successful applicants will likely already have a plan in place to decarbonise their process heat, and will be able to demonstrate value for money as well as their contribution to the economic recovery by boosting economic activity and providing local employment.”
“We’re requiring New Zealand businesses to implement these projects quickly, not only to get the benefits of lower greenhouse gas emissions and greater economic activity, but to demonstrate to industry across New Zealand that there are proven viable solutions to their clean energy needs.”
The first funding round is open now, with a deadline for proposals of December 14.
Decisions on the first round will be made early in the New Year.
Information on the GIDI Fund is available at https://genless.govt.nz/gidi-fund