Energy Resources Aotearoa say news that the Government will no longer impose a biofuels mandate is a good start to changing energy policy and gives businesses and consumers much-needed certainty.
Energy Resources Aotearoa chief executive John Carnegie says Wednesday’s announcement by prime minister Chris Hipkins comes after several years of speculation and uncertainty around the proposed mandate.
The introduction of the obligation would have required firms to invest in processes to ensure a growing percentage of liquid fuels per litre came from biofuels. With the proposed mandate to be implemented from April 1, 2024, firms were well-advanced in their planning for compliance.
“It’s likely there will be a role for biofuels in the future and the cost of biofuels is expected to come down through economies of scale when producers can increase production,” Carnegie says.
“However, until then, and given the current cost of living pressures, the Government’s focus should be on ensuring that no regulatory barriers exist to the uptake of biofuels, where they are commercially viable and meet changing consumer needs.”
Carnegie says that New Zealand’s world-leading Emissions Trading Scheme is already driving Kiwis towards lower-emissions alternatives.
“Ending the biofuel mandate is a good first step but there is still more work for the Government to do to make energy more affordable. To ensure a reliable and affordable energy system through the transition to a net zero emissions economy, the Government should look to shelve the Lake Onslow pumped hydro scheme and give gas producers the confidence they need to invest in New Zealand. Least-cost solutions need to be back on the table,” Carnegie says.
