“We must wean ourselves off fossil fuels:” New Zealand launches landmark climate plan

New Zealand’s Labour government announced on Monday its “landmark” Emissions Reduction Plan which is designed to set the country on a pathway to meet its 2050 net-zero targets.

The Emissions Reduction Plan targets climate strategies across a range of sectors including transport, energy, waste, building and construction, and agriculture and forestry.

The multi-sector strategy is designed to meet emissions budgets while improving the ability of those relevant sectors to adapt to the effects of climate change.

“This is a landmark day in our transition to a low emissions future,” said New Zealand Prime Minister Jacinda Ardern.

“We’ve all seen the recent reports on sea level rise and its impact right here in New Zealand. We cannot leave the issue of climate change until it’s too late to fix.

As reported on our EV-focused sister site The Driven, the Emissions Reduction Plan includes the launch of the Clean Car Upgrade program, which provides targeted assistance to lower- and middle-income households for the uptake of low-emission vehicles.

The EV subsidies are part of $NZ1.2 billion worth of transport sector-specific investments, which also include $NZ350 million for public transport, cycling, and pedestrian access, and an EV leasing scheme trial for low-income families.

The larger Emissions Reduction Plan also includes just over $NZ650 million to decarbonise industry over the next four years.

There is also a further $NZ18 million to fund the development of an energy strategy, a regulatory framework for offshore renewable energy, and a roadmap for the development and use of hydrogen.

On a larger scale, approximately $NZ1 billion will be spent over seven years to decarbonise industry, including around $NZ600 million towards an expanded process heat fund.

Another $NZ40 million will be allocated to decarbonising space and water heating, and $NZ330 million will be provided to small- and medium-sized businesses to upgrade to more energy efficient equipment.

“Emissions from our energy and industry sectors make up 27 percent of our total emissions,” said Megan Woods, NZ energy and resources minister.

“Rising global energy prices we cannot control show we must wean ourselves off expensive fossil fuels, scale up our ambition to decarbonise industry, and future proof our energy system, to ensure that a cheaper, more secure energy supply becomes the norm.”

The New Zealand government has also committed $NZ710 million over four years to accelerate efforts to lower agricultural emissions, expanding the contribution of forestry to reduce carbon, and produce alternative green fuels.

This includes the establishment of a new Centre for Climate Action on Agricultural Emissions as part of $NZ339 million designed to accelerate the development of high-impact technologies and practices to reduce agricultural greenhouse gas emissions.

“Our economic security depends on New Zealand’s food and fibre sector,” said Damien O’Connor, NZ agricultural minister. “It’s our biggest export earner but also our largest contributor to emissions, and if we don’t take action now we will be at risk as consumer preferences evolve.”

Finally, New Zealand is also establishing a $NZ4.5 billion Climate Emergency Response Fund (CERF) with funds from the Emission Trading Scheme revenue, which will initially invest $NZ2.9 billion over four years in the country’s emissions reduction.

“New Zealand trades on its environmental reputation,” said Grant Robertson, deputy Prime Minister and finance minister.

“It is the key to the ongoing security of our primary exports and tourism, our two main export earners. Investing in low-emissions projects and industries provides opportunities for our businesses, and protects both our economic and social wellbeing.”