Saturday, April 13, 2024

Funding to reduce commercial building emissions

Government funding announced today will allow commercial building tenants and owners to improve the climate and energy efficiency of their buildings, says Minister of Energy and Resources, Megan Woods.

The Minister said the targeted programme will help commercial building owners or tenants to install and upgrade to cleaner, smarter, energy-efficient and low emissions heating.

“We want to partner with businesses to ensure commercial office buildings are largely powered by renewable energy and the programme is a critical part to achieving this,” she said.

“The ‘GIDI: Commercial Buildings’ funding helps businesses overcome a capital hurdle that can prevent investment in clean equipment with the highest efficiency rather than continuing to rely on less efficient alternatives.”

The commercial building sector produces around 2 MtCO2 annually,[1] or 6.4% of New Zealand’s energy-related emissions.

“This programme will help speed up the replacement of fossil fuel boilers that are not yet at the end of their life and would otherwise remain in service for years.”

“We know there’s a growing list of businesses that are keen to get going and decarbonise their operations and this fund is designed to support that transition.

“Many of our commercial buildings heat their spaces and water with coal, diesel and gas when we have the tech, like electric hot water heat pumps, that would significantly reduce these emissions.”

New Zealand’s commercial buildings use 21% of the country’s electricity annually – which costs businesses approximately $800 million every year.

“More energy efficiency will save businesses money in the long term, and support a more renewable and resilient grid,” Minister Woods said.

“The benefits of the GIDI fund are already being realised across New Zealand. So far, we have co-funded 67 major industrial decarbonisation projects, including a major partnership with NZ Steel. 22 of these are already complete or being commissioned right now with all set for completion by December 2027,” she said.

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