Why we focus on business
A massive 40% of New Zealand’s energy-related emissions come from the business sector.
The largest portion of this comes from industrial process heat — the steam, hot water or hot gases used in industrial processing, manufacturing and space heating. About half of New Zealand's process heat demand comes from burning coal or natural gas.
The good news is, there are a number of low-emissions alternatives available for businesses that not only reduce emissions, but can also lower energy costs and improve profitability.
The business sector represents
- 45 %
of New Zealand's energy use*
- 43 %
of New Zealand's energy-related emissions*
*Includes household electricity use and direct use of fuels (e.g. gas and wood) for heating and cooking. It does not include household petrol/diesel-powered transport. Source: Greenhouse Gas Inventory 1990-2021, Ministry for the Environment (2023), Energy End Use Database 2023 (2021 data).
- Businesses meet emissions reductions targets.
- Businesses use low emissions innovations and insights.
- Businesses benefit from improved energy productivity.
- Improving our support to businesses through better use of data and insights.
- Investigating new opportunities to support business sectors, and funding new technology opportunities.
- Fast-tracking investment into, and implementation of, projects that reduce business emissions.
- Exploring new funding mechanisms to accelerate decarbonisation.
What we're doing now
Government investment in decarbonising industry
The Government Investment in Decarbonising Industry (GIDI) Fund supports energy efficiency, and the switch from fossil fuels to cleaner renewable energy sources across the industrial and commercial sectors.
The partnership approach helps by getting emissions reduction projects across the line and happening faster than they otherwise would, delivering larger and earlier emissions reductions. It helps by investing in businesses instead of buying offsets overseas.