New Zealand’s Emissions Reduction Plan (May 2022) sets out the pathway for how New Zealand will meet its first emissions budgets (2022-2035) and achieve long-term climate targets.

To help meet this challenge, the Government has announced expanded funding of around $650 million for the Government Investment in Decarbonising Industry fund (GIDI), coming from the Climate Emergency Response Fund (CERF).

Read the full announcement by Minister of Energy and Resources, Dr Megan Woods, here:

Supercharging decarbonisation & transforming the energy system | Beehive.govt.nz(external link)

Introducing the expanded GIDI Fund

The investment will be across four years, and will cover a broader number and type of projects:

  • A continued focus on process heat (similar to previous GIDI):

Including high impact decarbonisation projects of national significance.

Targeted investment at a regional level for projects that optimise low emission fuel use.

Funding for electricity transmission and distribution infrastructure upgrades to support fuel-switching, and the early adoption of high decarbonisation energy technologies.

  • Help for businesses to buy and install low emission, high efficiency electrical equipment used for industrial and commercial processes, including specifically electric motors and electric heat pumps.
  • Help for commercial buildings replacing fossil fuel use for space and water heating, to lower emissions and increase energy efficiency.

The GIDI funding focus will evolve

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Applications have opened for the GIDI Process Heat Contestable Fund – Round 4

The RFP for the latest round of the contestable funding is for medium to large energy projects and opened on Thursday, June 9. Find out more and apply: Apply for GIDI co-funding

 

Eligibility criteria for the first RFP include

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The GIDI funding has helped fast-track the process and was the driving force behind the decision to move away from coal.

Nigel Hales, Chief Executive, WoolWorks

Objectives of the GIDI Fund

  • accelerating business decarbonisation to support the Government’s emissions reduction goals
  • optimising energy use by New Zealand’s businesses, easing the transition and helping improve productivity, and
  • helping achieve a just transition.

 

Learn more about projects that have received co-funding

Who can apply

Co-investment is available to New Zealand-based private sector businesses that have committed to decarbonising their industrial processes but where additional Government co-investment is needed. Fund recipients must:

  • use fossil fuels as the source of energy in their industrial processes and process heat
  • have committed to a carbon reduction pathway and have a plan to deliver on it.

Apply here

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GIDI Private Finance Pilot

EECA recognises that private finance is a crucial part of the transition and has commenced a Private Finance Pilot with financial providers that aims to:

  • maximise the reach of GIDI funding available to businesses to help achieve New Zealand's decarbonisation targets
  • improve visibility to GIDI applicants of finance providers that are available, and have expertise, to help NZ businesses decarbonise, and
  • mobile the finance sector into mainstreaming sustainable finance and offering competitive rates for decarbonisation projects.

Read the directory of finance providers and learn more about their offerings - Private Finance Pilot

Watch past recipients discuss previous GIDI-funded projects

NZ Sugar: "GIDI will bring forward our project"

Graeme Smith, General Manager, NZ Sugar, highlights why GIDI is crucial for them.

Southern Paprika: "Energy has always been a challenge"

Blair Morris, General Manager, shares Southern Paprika's story.

Read more about previous GIDI-funded projects