Taking energy efficiency seriously

Pre-Budget announcement on 8 June 2000

A Budget boost of $3.0 million a year for energy efficiency and renewable energy will help New Zealand towards a sustainable energy future, Energy Minister Pete Hodgson said today.

The new money raises the budget of the Energy Efficiency and Conservation Authority [EECA] to $7.10 million. The extra $3.0 million will pay for energy efficiency grants [$0.85 million] and for energy efficiency and conservation initiatives implemented by EECA. The authority will provide leadership, advice and information to the Government, business and households.

"Energy efficiency is a winner for industry, the consumer and the environment," Mr Hodgson said. "Nobody loses, and the savings greatly outweigh the costs.

"Improving New Zealand's energy efficiency will reduce energy costs for industry and consumers and help energy providers manage demand. It can also help New Zealand meet its international commitments on climate change."

A new project funded from the Budget is the development of a National Energy Efficiency and Conservation Strategy. The strategy is required by Green co-leader Jeanette Fitzsimons' Energy Efficiency and Conservation Act 2000, which passed recently with full Government support.

"Once the strategy is in place we will have a much better idea of the potential that energy efficiency and new renewable energy technologies have to change the pattern of energy use in New Zealand," Mr Hodgson said. "We will also be able to quantify more precisely the role these technologies will play in meeting our commitment to the Kyoto Protocol.

"Should there be a clear need for more taxpayer funding in this area at that time, the Government will give that favourable consideration."