Prime Minister Chris Hipkins (third left) and Minister of Energy and Resources Megan Woods (second left) visiting the Auckland-based Chelsea Sugar Factory. Photo: RNZ / Felix Walton
The government has committed an extra $16.2 million to the Government Investment in Decarbonising Industry fund in the fourth round of its project to reduce industrial emissions.
Prime Minister Chris Hipkins visited the Auckland-based Chelsea Sugar Factory, which previously received funding during the project's second round. Since receiving that funding, Chelsea Sugar has reduced its emissions by 10 percent, equivalent to roughly 2700 tonnes per year.
"Through the government's investment in decarbonising industry, we know we can reduce our carbon emissions but also protect New Zealand jobs, and we can help to ensure that New Zealand-based businesses remain globally competitive," Hipkins said.
He announced the government would contribute funding to a further 15 businesses through the GIDI fund for decarbonisation, including almost $3m towards Fonterra's operations in the North Island.
"What we're also showing is that moving off fossil fuels and going green is good for business," Minister of Energy and Resources Megan Woods said.
"What I love about the GIDI fund is that time and time again we prove that decarbonisation doesn't mean deindustrialisation."
She said she was impressed by what Chelsea Sugar had done with their funding. "Many businesses, like Chelsea Sugar, have been bold and are actively finding ways to decarbonise their business," she said.
"So far we have co-funded 66 major industrial decarbonisation projects in total, with all set for completion by December 2027."
The new projects announced today would have a big impact, Woods said.
"[They] will reduce carbon emissions by 38,354 tonnes each year, which is equal to taking approximately 14,200 cars off the road - that's more than the total number of cars in Wānaka," she said.
Chris Hipkins also announced his intention to expand renewable electricity farms. Photo: RNZ / Felix Walton
The prime minister also declared his intention to expand renewable electricity farms to ensure that electric appliances like EVs could be powered from sustainable sources.
"The other thing we're talking about today is making sure that we're going to have enough electricity generation in order to produce the electricity we need as we move from non-renewable energy sources to the use of renewable energy sources," Hipkins said. "As we have more electric vehicles on the road, we need to be able to charge them."
Renewable energy also had cost benefits, he said.
"When I became prime minister I said that cost of living would be front and centre," Hipkins said. "Renewable energy is a cost of living issue, renewable energy is cheaper and therefore is going to help New Zealanders in the longer term to live more sustainably and reduce their household bills."
Woods said the government planned to cut the "red tape" slowing down the expansion of solar and wind farms and speed up the consenting process.