$70m for carbon emission reductions

A $70 million fund launched by the Labour government will allow business and industries to access financial support to switch boilers run on coal and gas to cleaner electricity and biomass options.

“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,” energy minister Megan Woods says.

It will allow for solar, wind and other renewable energy sources.

The investment fund will be administered by the Energy Efficiency and Conservation Authority (EECA), which also does the low emission vehicles contestable fund.

The new fund is available to New Zealand-based businesses which 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, with applications closing December 14 and successful applicants announced early next year.

 Prime minister Jacinda Ardern says the fund provides much needed financial support to business to assist with the often costly transition of plant and equipment to clean energy sources.

She says this follows the Interim Climate Change Commission recommending a focus on lowering emissions from process heat as a priority for decarbonising the economy.

The latest fund is different from the $200m State Sector Decarbonisation Programme launched in January 2020, which supports decarbonisation programmes within the Public Service.

So far, almost $80m has been committed, with expected annual emissions reductions of 26,000 tonnes annually. once these projects are completed.

Visit GenLess for more information on the Government Investment in Decarbonising Industry (GIDI) Fund.