Gas Transition Plan

As set out in the Emissions Reduction Plan, the Government has agreed to begin work to develop a Gas Transition Plan (the Plan) that will set out the immediate steps on a long-term pathway to phasing-out fossil gas in Aotearoa New Zealand. The Plan will focus on actions through to 2035 for the fossil gas sector to reduce emissions, and support the transition to a net zero carbon economy by 2050.

The Gas Transition Plan will outline steps to take to decarbonise and reduce reliance on fossil gas, 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.

The term fossil gas refers to natural gas and is used to distinguish this source of gas from biogenic, renewable, or synthetic sources.

MBIE is working with the gas industry co-regulator, the Gas Industry Company, to develop the Plan.

We intend 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.

The Plan is expected to be completed by the end of 2023.

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.

Fossil gas needs to be phased out over time to ensure energy remains accessible, reliable and affordable to New Zealanders. 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.

Aotearoa New Zealand Energy Strategy

Timeline for developing the Gas Transition Plan

The following is a tentative timeframe for the key phases of this work:

• Initial development of the Plan, including targeted engagement (May 2022 to early 2023)
• Public consultation on the Plan (mid 2023)
• Finalisation of the Plan (second half of 2023)
• Publication of Plan (end of 2023)
• Publication of Energy Strategy (end of 2024).

Read the Terms of Reference