Climate Change and Energy

Last updated on 1 October 2009. 

Greenhouse gas emissions from the transport sector make up about 20 percent of New Zealand’s total greenhouse gas emissions each year (see New Zealand’s national inventory - section 3.2.3). Transport also represents over 40 percent of New Zealand’s greenhouse gases from the energy sector.

Summary of the Transport Climate Change Work programme

The Ministry of Transport's climate change work programme includes contributions to the New Zealand Emissions Trading Scheme, biofuels, electric vehicles, other alternative fuels and technologies and the energy efficiency of commercial fleets.

• Emissions Trading Scheme: The government has announced that the New Zealand Emissions Trading Scheme will apply to the transport sector (liquid fossil fuels) from 1 July 2010.
• Biofuels: To ensure equal incentives for biofuels between now and 2012 the government has agreed to provide a grant to domestically produced biodiesel. This grant is equivalent to the petrol excise duty exemption currently in place for bioethanol. $36 million has been allocated to the grant scheme over three years.  The policy development for the scheme was led by the Ministry of Economic Development, with input from the Energy Efficiency and Conservation Authority and the Ministry of Transport.  It is administered by Energy Efficiency and Conservation Authority. 
• Electric Vehicles: To recognise the role that new technology will play in assisting with the reduction of greenhouse gas emissions from the transport sector, the government has committed to an exemption from Road User Charges for electric vehicles until 2013.  The Road User Charges Amendment Bill has been amended to give effect to this policy.  
• Other alternative fuels and technologies: The government is investigating ways of encouraging transport fuels derived from diverse sources such as biomass, landfill gas, synthetic fuels, CNG and LPG, as well as technologies that assist in the uptake of low emission fuels. 
• Fleet Best Practice Programme: Commercial vehicle fleet fuel efficiency was a significant area of research during 2008.  The Ministry is developing a NZ-based curriculum for fuel efficient driver training for heavy and light commercial vehicle fleets.
• Fuel Economy: The government has introduced a requirement for the fuel economy of vehicles to be shown on at their time of sale and has created a FuelSaver website where the public can compare fuel efficiency of vehicles.

Diversity of energy sources will help to build resilience in the transport sector to potential future oil supply constraints and also contribute to lowering greenhouse gas emissions from the transport sector.