Gas Transition Plan
The Government is working to develop a plan for an equitable transition for the fossil gas sector, which will be a key input into the broader Energy Strategy.
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 help to guide the fossil gas sector to reduce emissions, in line with our 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 purpose of the Gas Transition Plan is to:
- establish transition pathways for the fossil gas sector to decarbonise in line with the first 3 emissions budgets, noting the inherent uncertainties involved;
- provide a framework to inform and engage with industry and other stakeholders about the future challenges and opportunities for the sector, and to identify areas where further measures may be required to achieve an equitable transition; and
- establish a strategic view on the potential role for renewable gases, and potential measures for accelerating their uptake.
The Plan aims to set out a number of actions that the Government will undertake to support an equitable transition, helping to provide certainty to the gas industry and other stakeholders about the Government’s gas work programme over the coming years. The energy industry also has a role to play in supporting an equitable transition, and recommendations for the fossil gas industry may also be made. The Plan will be an input into the Energy Strategy.
The Plan will have 2 pillars:
- Pillar 1 will focus on transition pathways for the fossil gas sector; and
- Pillar 2 will develop 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.
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).