EECA will receive a funding boost to expand its transport and business programmes.
Funding for low emissions vehicles will increase from its current $6-7 million per year to $25 million per year by 2023/24.
The increased funding will support an expanded scope for projects to further accelerate the uptake of low emission transport technologies in New Zealand, with the LEVCF being reconfigured into the Low Emissions Transport Fund (LETF). The full details of the new LETF will be released later in the year.
EECA’s business support funding will increase to a total of $8.1 million per year. The funding will be used to scale up the support EECA provides to Kiwi businesses to reduce emissions by embracing low emissions technologies and energy efficiencies.
EECA CEO Andrew Caseley said, “This funding increase will allow us to hit the accelerator on our business and transport programmes. There is absolutely no time to be lost in decarbonising New Zealand’s economy, so scaling up our support in these areas means we can expect to see businesses moving much faster away from fossil fuels.
“We expect that the expansion of our business programmes will avoid 919,000 tonnes of CO2e over the lifetime of supported projects, through energy efficiency measures and fuel-switching to low-emissions options such as biomass and electricity.
“The transport funding allows us to widen the scope beyond electric vehicles, and support other low-emissions transport and infrastructure, including biofuels and hydrogen. It will also include aviation, maritime and off-road diesel.”
In her announcement, Minister of Energy and resources Dr Megan Woods said, “A big part of decarbonising our economy means understanding what options there are to transition, developing plans to get there and support for bringing on new technology. This all makes it easier for businesses to move toward clean and clever energy use.”
Andrew Caseley added, “This is a significant investment for EECA, and we’re ready to deliver on it.”
- Transport accounts for 48 percent of New Zealand’s energy-related greenhouse gas emissions, and process heat makes up 27 percent.
- The LETF will encourage innovation and investment to accelerate the uptake of low-emissions vehicles, through co funding for projects. The remainder will be met by grant recipients. The current programme offers up to $6.5 million a year of levy funding to projects through the Low Emission Vehicles Contestable Fund (LEVCF).
EECA’s Business programme funding (currently funded at $4.1 million a year) is expected to deliver:
- emissions abatement – avoidance of 919 kt of CO2e by 2030, with many projects expected to deliver emissions savings at a cost lower than the current New Zealand Emissions Trading Scheme price
- reduced energy consumption for businesses – savings of 20 PJ of energy by 2030, which is equivalent to $237.6 million
- increased productivity – getting more value and benefit from the energy we use.
- It complements the $69 million Government Investment in Decarbonising Industry (GIDI) Fund that was established in 2020 to help businesses overcome the capital barriers to reducing emissions.