Overview

Gas Transition Plan

The government has published its emissions reduction plan. It includes work to develop a Gas Transition Plan to drive emission reductions from natural gas. The plan will be a key input into a broader Energy Strategy, showing how emissions from gas can be reduced in line with targets in emissions budgets, in legislation, and in New Zealand's international commitments.

Gas Industry Co is working with MBIE to develop the plan. MBIE intends to engage with consumers, non-government organisations, other interested parties, and Treaty partners. Gas Industry Co expects to engage closely with industry as the plan develops.

Work to develop the plan will commence in May 2022, with targeted engagement during 2022. 

Public consultation on the Plan is expected around mid-2023 before it is finalised and published in the second half of 2023. The Energy Strategy is expected at the end of 2024.

The purpose of the Gas Transition Plan is to establish transition pathways for decarbonising the gas sector in line with the first three emissions budgets. It will provide a framework to inform and engage with industry and other stakeholders about the challenges and opportunities. Further measures that may be required to achieve an 'equitable transition' will be identified. 

The plan is also expected to establish a strategic view on the potential role for renewable gases, including potential measures for accelerating their uptake, and for carbon capture and utilisation technology.

Actions will be set out for the government to undertake, with the aim of providing more certainty about the government’s future gas work programme. Recommendations for the gas industry will also be part of the plan.

Summary Points:

The Plan will have 2 pillars:

1: Focus on transition pathways for gas; and

2: Develop a cohesive view on renewable gas market developments, including reducing  emissions and lower transition costs for consumers.

Tentative Timeline

May 2022-Early 2023: Initial development of the Plan, including targeted engagement.

Mid-2023: Public consultation on the Plan.

Second-Half of 2023: Finalisation of the Plan.

End of 2023: Publication of Plan.

End of 2024: Publication of Energy Strategy.

Consultation documents and further information will be published on this page.

For the Terms of Reference, click here

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