Explainer The big news from Govt’s carbon plan
New Zealand’s first Emissions Reduction Plan (ERP) is out – revealing how the Government plans to meet the nation’s first emissions budget of 72.4 million tonnes a year.
That means shaving 11.5 million tonnes of carbon dioxideequivalent off our emissions from 2022-2025.
The policies will be backed by $2.9 billion from the proceeds of selling carbon credits to polluters under the Emissions Trading Scheme over the next four years.
Some – like continuing the clean car discount – are continuations of existing policies.
Others – like a ‘cash-for-old dunger’ car scrapping scheme for low earners – are new.
So what does it mean for you? The Government is billing the major reform package as a chance to improve economic prosperity, lower the cost of living, restore nature, address inequality and improve living standards.
We studied the plan to bring you the top new announcements in every sector.
Housing
Stronger insulation standards so new buildings will take 40% less energy to heat.
What’s not in there: Significant new policies for retrofitting old buildings.
Energy
Half of all energy is slated to be from renewable resources by 2035. Crucially, this target is for all energy including that powering super-hot industrial boilers and other fossil-fuelled manufacturing processes. Previously, the Government had announced a target for electricity only, which in New Zealand is already mostly renewable.
There will be $650million in the Budget to subsidise businesses to buy more energy-efficient manufacturing equipment and switch from fossil-fuelled to lowemissions technology for their heating, boilers and dryers.
There are also moves to pave the way for offshore wind farms to get planning approval.
What’s not in there: The Climate Change Commission had recommended setting an end-date for connecting new houses to the gas network. Energy Minister Megan Woods says the ‘‘softening’’ was because the pipelinesmight be used to carry renewable gas instead.
A national energy strategy is still a work in progress.
Composting and rubbish
Most households will get access to kerbside food waste collection by 2030.
City landfills need to capture their methane emissions by 2026.
Transport
In a nod to fuel prices and rising cost-of-living pain, $569m has been earmarked to trial a vehicle scrap-and-replace scheme (such as cash for old dungers) to help lowincome households afford cleaner cars that are cheaper to run.
Freight emissions will be cut by 35% by 2035 by deploying biofuels, hydrogen, zero-carbon trucks and zero-emissions shipping. Thirty per cent of cars, vans and utes to be fully electric by 2035 (a policy floated in the Government’s discussion document last year).
New public buses will have zero emissions by 2025.
People will travel 20% less by car by 2035 and instead travel more by public transport, cycling and walking. There is $350m in the Budget to help shift people from high-emitting to low-emitting travel modes, including paying for at least 100km of safe cycleways, walkable neighbourhood upgrades and bus shelters.
What’s not in there: A date for congestion pricing in our biggest cities. An end date for