vimarsana.com

Major deal forecast to cut coal use at six Fonterra dairy factories, halving its manufacturing emissions by 2030 Delivers 2.69 per cent of all New Zealand's required emission reductions between 2026-2030 Emissions reductions equivalent to taking 120,000 cars off the road The Government is partnering with Fonterra to cut coal use at its dairy factories, delivering massive emissions reductions, and future-proofing New Zealand trade and exports. Fonterra has committed to undertaking a complex range of projects to cut coal use across six manufacturing sites - resulting in approximately 2.1 million tonnes of earlier CO2e reductions. The reductions are the same as taking approximately 120,000 cars off the road. Prime Minister Chris Hipkins announced the plans alongside Minister of Energy and Resources, Megan Woods, and the Minister of Climate Change, James Shaw at Fonterra's Hautapu site today. "This hugely significant commitment means the dairy sector will dramatically cut its coal use quicker - this is not just critical for our environment, but for our economy too," Chris Hipkins said. "By partnering with Fonterra to reduce emissions we're helping to maintain New Zealand dairy's competitive edge, as international consumers and food manufacturers demand further climate commitments. "In my recent trade missions, I've heard first-hand the importance of New Zealand's climate credentials to our exports. This partnership is an investment in our future economic prosperity. "This investment enables Fonterra to accelerate their emissions reductions, with an expected halving of their coal use by 2030, and delivers a big chunk of New Zealand's overall pollution cuts. "The current international environment is challenging for Fonterra and farmers, so we are teaming up to reduce more emissions faster. "The Government is getting runs on the board with our Emissions Reduction Plan. These partnerships with big emitters are reducing pollution, helping build momentum and ensuring we are keeping up with our international competitors. "It demonstrates our Government's commitment to climate action now, and how much further and faster we can go if we make investments sooner, rather than later," Chris Hipkins said. Under the partnership Fonterra, New Zealand's largest dairy producer and exporter, will undertake an emissions reduction programme across its entire business, with a particular focus on the remaining coal sites used to process dairy. TheGovernment will co-fund up to $90 million from the Government Investment in Decarbonising Industry (GIDI) Fund, which is paid for through the Emissions Trading Scheme. Fonterra has approximately $790m in investment planned in total, to meet the revised decarbonisation target. "Government backing has unlocked a revised and critical new target - achieving a 50 per cent reduction in carbon emissions by 2030 - which is an increase on its original target of 30 per cent, measured from a 2018 baseline," Megan Woods said. "This will help to meet our domestic and international emissions reduction obligations by 2030. "This approach sees the Government investing in New Zealand to help businesses cut their emissions, rather than sending that money offshore to buy overseas offsets - expected to cost into the billions - in a few years' time. "This agreement, second in magnitude to the cuts secured at NZ Steel, delivers 1.17 million tonnes of CO2e cuts, 2.69 per cent of the total emissions reductions required in New Zealand's second emissions budget between 2026 and 2030. "Fonterra is anticipating a combination of energy efficiency, biomass, existing heat pump technology and newer innovative solutions will deliver these reductions. "What is clear again today is that our energy choices and the technologies involved are going to play a central role in transitioning to a low-emissions economy, and we don't have to de-industrialise to decarbonise. "The private sector will do much of the heavy lifting. And in fact - already is. However, we too - as Government - have a role to play. "This is about accelerating change at scale - in a way that will also strengthen our economy and retain jobs," Megan Woods said. Climate Change Minister James Shaw described the deal as momentous for the sector. "This is a decarbonisation deal of national significance. It is expected to deliver over seven per cent of the targeted cuts to pollution from the energy and industrial sectors, in our second emissions budget, and over four per cent of our third emissions budget," James Shaw said. "I congratulate Fonterra, one of New Zealand's largest emitters, for showing what can be done, what must be done. "With a programme spanning multiple Fonterra sites, this will put New Zealand in a better position to reach net zero by 2050. But we cannot be complacent. We have to do everything we can to radically reduce our reliance on fossil fuels, in order to avoid the worst of climate crisis," James Shaw said. Notes for editors: EECA, who administer GIDI, will work alongside Fonterra as they determine and deliver the best opportunities for reducing their reliance on fossil fuels - both from a technical and economic perspective in the coming years. Coal boilers are still used at six of Fonterra's sites across the country and account for around half of Fonterra's total scope 1 and 2 emissions in New Zealand Almost all of Fonterra's manufacturing facilities targeted by this agreement are in the South Island. The projects are forecast to have an abatement cost to government of around $43 per tonne. The abatement cost per tonne is the cost of removing one tonne of carbon dioxide equivalent pollution. For context, the average Marginal Abatement Curve (MAC) from the yet to be announced Round 5 is also around $43 per tonne. The MAC represents good value for money and is in line with the Crown's more recent co-funding of industrial decarbonisation. This deal is the second in a number of bespoke opportunities that the Government is exploring, through the expanded GIDI Fund, to deliberately target appropriate support for New Zealand's largest emitters. The first partnership was the conditional funding agreement with NZ Steel, announced in May 2023. Emissions budgets set the amount of emissions New Zealand can produce in order to meet its climate change goals. These are described in New Zealand's first emissions reduction plan, published in May 2022. The project will achieve 2.69 per cent of the total emissions reductions required in Emissions Budget 2 (2026-2030) and 1.13 per cent of Emissions Budget 3 (2031 -2035) Delivers 7.27 per cent of the Energy & Industry sector sub target in Emissions Budget 2 and 4.34 per cent in Emissions Budget 3. Fonterra is a publicly traded dairy co-operative owned by more than 9,000 New Zealand dairy farmers and is our largest exporter. It is responsible for approximately 30 per cent of global dairy exports. EECA - which delivers projects under GIDI - has a programme dedicated to 'Partnerships with Very Large Emitters' as part of the funding allocated.

Related Keywords

New Zealand ,James Shaw ,Chris Hipkins ,Megan Woods ,Fonterra Hautapu ,Fonterra ,Minister Chris Hipkins ,Climate Change ,Emissions Reduction ,Government Investment ,Decarbonising Industry ,Emissions Trading ,Change Minister James Shaw ,Major Deal Forecast To Cut Coal Use At Six Fonterra Dairy Factories ,Alving Its Manufacturing Emissions By 2030 Delivers 2 69 Per Cent Of All New Zealand 39s Required Emission Reductions Between 2026 Equivalent To Taking 120 ,000 Cars Off The Road Government Is Partnering With Fonterra To Cut Coal Use At Its Dairy Factories ,Elivering Massive Emissions Reductions ,Nd Future Proofing New Zealand Trade And Exports Fonterra Has Committed To Undertakinga Complex Range Of Projects Cut Coal Use Across Six Manufacturing Sites Resulting In Approximately 2 1 Million Tonnes Earlier Co2e Reductions The Are Same As Taking 120 ,000 Cars Off The Road Prime Minister Chris Hipkins Announced Plans Alongside Of Energy And Resources ,Nd The Minister Of Climate Change ,Ames Shaw At Fonterra 39s Hautapu Site Today Quot This Hugely Significant Commitment Means The Dairy Sector Will Dramatically Cut Its Coal Use Quicker Is Not Just Critical For Our Environment ,Ut For Our Economy Too ,Uot Chris Hipkins Said Quot By Partnering With Fonterra To Reduce Emissions We 39 Re Helping Maintain New Zealand Dairy 39s Competitive Edge ,S International Consumers And Food Manufacturers Demand Further Climate Commitments Quot In My Recent Trade Missions ,I 39 Ve Heard First Hand The Importance Of New Zealand 39s Climate Credentials To Our Exports This Partnership Is An Investment In Future Economic Prosperity Quot Enables Fonterra Accelerate Their Emissions Reductions ,Ith An Expected Halving Of Their Coal Use By 2030 ,Nd Deliversa Big Chunk Of New Zealand 39s Overall Pollution Cuts Quot The Current International Environment Is Challenging For Fonterra And Farmers ,O We Are Teaming Up To Reduce More Emissions Faster Quot The Government Is Getting Runs On Board With Our Reduction Plan These Partnerships Big Emitters Reducing Pollution ,Elping Build Momentum And Ensuring We Are Keeping Up With Our International Competitors Quot It Demonstrates Government 39s Commitment To Climate Action Now ,Nd How Much Further And Faster We Can Go If Make Investments Sooner ,Rather Than Later ,Uot Chris Hipkins Said Under The Partnership Fonterra ,Ew Zealand 39s Largest Dairy Producer And Exporter ,Ill Undertake An Emissions Reduction Programme Across Its Entire Business ,Itha Particular Focus On The Remaining Coal Sites Used To Process Dairy Thegovernment Will Co Fund Up 90 Million From Government Investment In Decarbonising Industry Gidi ,Hich Is Paid For Through The Emissions Trading Scheme Fonterra Has Approximately 790m In Investment Planned Total ,O Meet The Revised Decarbonisation Target Quot Government Backing Has Unlockeda And Critical New Achievinga 50 Per Cent Reduction In Carbon Emissions By 2030 Which Is An Increase On Its Original Of 30 ,Easured Froma 2018 Baseline ,Uot Megan Woods Said Quot This Will Help To Meet Our Domestic And International Emissions Reduction Obligations By 2030 Approach Sees The Government Investing In New Zealand Businesses Cut Their ,Ather Than Sending That Money Offshore To Buy Overseas Offsets Expected Cost Into The Billions Ina Few Years 39 Time Quot This Agreement ,Econd In Magnitude To The Cuts Secured At Nz Steel ,Elivers 1 17 Million Tonnes Of Co2e Cuts , 69 Per Cent Of The Total Emissions Reductions Required In New Zealand 39s Second Budget Between 2026 And 2030 Quot Fonterra Is Anticipatinga Combination Energy Efficiency ,Iomass ,Xisting Heat Pump Technology And Newer Innovative Solutions Will Deliver These Reductions Quot What Is Clear Again Today That Our Energy Choices The Technologies Involved Are Going To Playa Central Role In Transitioning Toa Low Emissions Economy ,Nd We Don 39t Have To De Industrialise Decarbonise Quot The Private Sector Will Do Much Of Heavy Lifting And In Fact Already Is However ,E Too As Government Havea Role To Play Quot This Is About Accelerating Change At Scale Ina Way That Will Also Strengthen Our Economy And Retain Jobs ,Uot Megan Woods Said Climate Change Minister James Shaw Described The Deal As Momentous For Sector Quot This Isa Decarbonisation Of National Significance It Is Expected To Deliver Over Seven Per Cent Targeted Cuts Pollution From Energy And Industrial Sectors ,N Our Second Emissions Budget ,Nd Over Four Per Cent Of Our Third Emissions Budget ,Uot James Shaw Said Quoti Congratulate Fonterra ,Ne Of New Zealand 39s Largest Emitters ,Or Showing What Can Be Done ,Hat Must Be Done Quot Witha Programme Spanning Multiple Fonterra Sites ,His Will Put New Zealand Ina Better Position To Reach Net Zero By 2050 But We Cannot Be Complacent Have Do Everything Can Radically Reduce Our Reliance On Fossil Fuels ,N Order To Avoid The Worst Of Climate Crisis ,Uot James Shaw Said Notes For Editors Eeca ,Ho Administer Gidi ,Ill Work Alongside Fonterra As They Determine And Deliver The Best Opportunities For Reducing Their Reliance On Fossil Fuels Both Froma Technical Economic Perspective In Coming Years Coal Boilers Are Still Used At Six Of 39s Sites Across Country Account Around Half Total Scope 1 2 Emissions New Zealand Almost All Manufacturing Facilities Targeted By This Agreement South Island Projects Forecast To Have An Abatement Cost Government 43 Per Tonne Is Removing One Carbon Dioxide Equivalent Pollution Context ,He Average Marginal Abatement Curve Mac From The Yet To Be Announced Round 5 Is Also Around 43 Per Tonne Represents Good Value For Money And In Line With Crown 39s More Recent Co Funding Of Industrial Decarbonisation This Deal Second Ina Number Bespoke Opportunities That Government Exploring ,Hrough The Expanded Gidi Fund ,O Deliberately Target Appropriate Support For New Zealand 39s Largest Emitters The First Partnership Was Conditional Funding Agreement With Nz Steel ,Nnounced In May 2023 Emissions Budgets Set The Amount Of New Zealand Can Produce Order To Meet Its Climate Change Goals These Are Described 39s First Reduction Plan ,Ublished In May 2022 The Project Will Achieve 2 69 Per Cent Of Total Emissions Reductions Required Budget 2026 2030 And 1 13 3 2031 2035 Delivers 7 27 Energy Amp Industry Sector Sub Target 4 34 Fonterra Isa Publicly Traded Dairy Co Operative Owned By More Than 9 ,000 New Zealand Dairy Farmers And Is Our Largest Exporter It Responsible For Approximately 30 Per Cent Of Global Exports Eeca Which Delivers Projects Under Gidi Hasa Programme Dedicated To 39 Partnerships With Very Large Emitters As Part The Funding Allocated ,

© 2024 Vimarsana

vimarsana.com © 2020. All Rights Reserved.