The Government is partnering with Fonterra to cut coal use at its dairy factories, delivering massive emissions reductions, and future-proofing New Zealand trade and exports.

Fonterra has committed to undertaking a complex range of projects to cut coal use across six manufacturing sites – resulting in approximately 2.1 million tonnes of earlier CO2e reductions. The reductions are the same as taking approximately 120,000 cars off the road.

Prime Minister Chris Hipkins announced the plans alongside Minister of Energy and Resources, Megan Woods, and the Minister of Climate Change, James Shaw at Fonterra’s Hautapu site today.

“This hugely significant commitment means the dairy sector will dramatically cut its coal use quicker - this is not just critical for our environment, but for our economy too,” Chris Hipkins said.

“By partnering with Fonterra to reduce emissions we’re helping to maintain New Zealand dairy’s competitive edge, as international consumers and food manufacturers demand further climate commitments.

“In my recent trade missions, I’ve heard first-hand the importance of New Zealand’s climate credentials to our exports. This partnership is an investment in our future economic prosperity.

“This investment enables Fonterra to accelerate their emissions reductions, with an expected halving of their coal use by 2030, and delivers a big chunk of New Zealand’s overall pollution cuts.

“The current international environment is challenging for Fonterra and farmers, so we are teaming up to reduce more emissions faster.

“The Government is getting runs on the board with our Emissions Reduction Plan. These partnerships with big emitters are reducing pollution, helping build momentum and ensuring we are keeping up with our international competitors.

“It demonstrates our Government’s commitment to climate action now, and how much further and faster we can go if we make investments sooner, rather than later,” Chris Hipkins said.

Read the full Beehive press release(external link)

Learn more about GIDI: Partnerships