Gas Transition Plan

About the Plan

As set out in the Emissions Reduction Plan, the Government is developing a Gas Transition Plan (the Plan) that manages the gas industry’s transition to a low emissions future. A shared view of the gas transition pathway will give the sector the certainty needed to make decisions in the best interests of New Zealanders now and in the future.

MBIE is working with the gas industry co-regulator, the Gas Industry Company, to develop the Plan. The Gas Transition Plan will outline steps to take to 2035, while still providing for some fossil gas use in 2035. This will be in line with Aotearoa New Zealand’s legislated targets, emissions budgets and Aotearoa New Zealand’s international commitments. While the Gas Transition Plan will focus on the path to 2035, the steps we take now will influence the direction of the fossil gas sector to 2050.

The Government’s vision for energy and industry in 2050 is for New Zealand to have a highly renewable, sustainable, and efficient energy system that is accessible and affordable, secure, and reliable, and supports New Zealanders’ wellbeing. Fossil gas has a role to play in keeping energy reliable and affordable during the transition.

The Gas Transition Plan will focus on 2 main pillars:

• setting out the fossil gas transition pathways across the first 3 emissions budgets to 2035; and
• developing a cohesive view on renewable gas market developments, including how Aotearoa New Zealand could effectively reduce emissions and lower transition costs for fossil gas consumers.

The Plan aims to set out a number of actions that the Government will undertake to support an equitable transition, helping to provide certainty for the gas industry and other stakeholders about the Government’s gas work programme over the coming years. The Plan will be an input into the Energy Strategy.

Consultation

In late 2023, MBIE sought public feedback on the key issues and opportunities facing the gas sector as we decarbonise our economy. It considers how we can lower emissions, including by using options like carbon capture utilisation and storage, and renewable gases like biomethane and hydrogen.

We received 101 submissions during consultation and work is currently underway to analyse feedback and identify themes.

All submissions provide us with valuable insight and will be considered by the incoming Government to inform a future work programme.

We expect to be able to update you on next steps in the new year when the incoming Government provides direction.

As detailed in the consultation document, we will be publishing submissions in full unless the submitter has requested specific redactions.

We are also continuing to engage with stakeholders, including the gas industry, consumers, non-government organisations, other interested parties, and our Treaty partners at various points throughout the Plan’s development.

Gas transition plan supporting documents