Climate Minister says gas shortage will lower greenhouse emissions
Photo:
RNZ / Robin Martin
Climate Change Minister Simon Watts says the gas shortage will lower greenhouse gas emissions, but at a cost for businesses that can't switch to electricity.
Supply from existing gas fields has plunged since the government published its
Emissions Reduction Plan
in December 2024.
Watts was asked in a scrutiny hearing in front of the environment committee of MPs why the government's
climate plan
had put such heavy emphasis on capturing and storing carbon dioxide underground at Kapuni gas field, when the project was untested and its prospects were now looking dubious.
Watts blamed the gas shortage - but said the shortage itself would lower carbon dioxide emissions.
He said, compared with when the plan was written, "New Zealand has less gas than it thought".
"Less gas that's available by virtue is less emissions, so in some ways there is an acceleration of the emissions reduction because we simply don't have that gas available," he said.
"We are at critical levels in the context of low levels of gas. Some may say with a purely climate hat on, well that's good, there are no emissions and therefore they can't use it (gas)," Watts said.
"But the reality is, in a manufacturing and industrial sense there are a number of businesses who either have an inability to transition to other sources ... or doing so is a significant fiscal cost and/or time horizon."
Watts said the government was looking at ways to help those companies.
"The good thing is, in the current environment there is an economic [and] commercial case to transition off gas because electricity is cheaper, and therefore the commercial imperative is driving that transition."
"I'll take market intervention over government regulation any day."
Watts said the government's assumptions regarding future gas use and the prospects of carbon capture at Kapuni would need to be reassessed and the results would published later this year.
Carbon capture and storage (CCS) condenses carbon dioxide and stores it underground in reservoirs.
Overseas, some high profile projects have been controversial because taxpayer funds for climate action were being paid to some of the planet's biggest emitters, fossil fuel companies, to capture and store just a tiny fraction of their pollution underground.
Fully a third of the carbon savings needed to meet the government's legal obligations to cut emissions from 2025-2030 was
supposed to come from
carbon dioxide being stashed permanently underground at Taranaki's Kapuni gas field.
But in May, Kapuni's owner Todd Energy told RNZ the project wasn't viable unless it received some kind of extra incentive or subsidy from the government.
The scheme would earn carbon credits for every tonne of emissions stored, but Todd said the market price of carbon was too low to justify the investment.
Simon Watts.
Photo:
RNZ / Samuel Rillstone
At the scrutiny hearing, Watts was grilled by opposition MPs on whether Todd Energy had asked for direct subsidies from the government.
Watts said he hadn't seen such a request, but Labour MP Deborah Russell presented him with an answer to a written question in Parliament, confirming Todd had asked for subsidies.
Watts didn't directly answer Russell when she asked what the government's reply had been. He said in regards to support for industries "there's a number of aspects that remain under active consideration".
Watts said the government was still committed to passing regulations allowing carbon capture and storage as "one tool in the toolbox" for lowering emissions.
RNZ asked Todd to clarify what it had asked for.
It said it had not asked the government for a direct subsidy for carbon capture and storage at Kapuni.
But the company confirmed it wanted either co-investment, government underwriting or shared liability with the taxpayer for any future carbon leaks from the project.
Todd has previously argued the government should treat carbon capture and storage facilities as infrastructure.
"In our 2024 submission to MBIE (Ministry for Business Innovation and Employment) on the CCUS consultation, we did signal that government support - particularly in the form of risk-sharing or enabling mechanisms - would be essential for CCS to proceed in New Zealand," it said.
"Particularly, we noted that New Zealand's declining gas reserves make the economics of CCS challenging and that 'for CCS to be effective, the government should consider sharing project risks and responsibilities.
"It could be liability for leakage, particularly if the intent is to store third party CO2 in time. Due to challenging economics there is also financing risk that co-investment or a government underwrite could help to de-risk," said the company.
Todd Energy had previously estimated the Kapuni field would have room for storing carbon dioxide produced by other companies, as well as its own.
Earlier in the hearing, Watts was asked by National MP Grant McCallum about the risk of "emissions leakage" if New Zealand started lowering its methane emissions from farming.
Emissions leakage refers to the risk of production moving overseas to get away from emissions pricing in its country of origin.
Watts
defended the necessity
of meeting New Zealand's climate targets and international obligations.
"You hear some on some corners saying, we're very small and insignificant," he said.
"Every country, big or small, has a role to play in terms of reducing emissions and New Zealand is part of the Paris Agreement for that purpose.
"In terms of adding up all the small and insignificant countries, it adds up to 40 per cent of global emissions," Watts said.
"If we pull out, what signal does that send? There are three countries that are not part of the Paris Agreement, the USA and a number of other countries that most people probably have probably never heard of."
[Those countries are
Iran, Libya and Yemen
.
"Russia, China, India, they're all part of the Paris Agreement, and all the other countries we would look to - the only one is the US.
"In regards to the implications on international trade, ... New Zealand has a reputation as a primary sector exporter of red meat, dairy and other products," he said.
"Why would we put that at risk?"
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
2 hours ago
- NZ Herald
On The Up: Mount Maunganui start-up Dispute Buddy wins global grant for legal tech growth
A small legal tech start-up run from Mount Maunganui has won a global growth grant to help establish itself in overseas markets. Dispute Buddy, founded by Jenny Rudd, was one of two start-ups chosen from a pool of 400 New Zealand-based entrants to win a $5000 Airwallex Global Grant.
RNZ News
4 hours ago
- RNZ News
Who's running for Auckland's mayoralty?
Eleven people are going up against incumbent Wayne Brown to be the mayor of Auckland. Photo: RNZ / Diego Opatowski Eleven people are going up against incumbent Wayne Brown to be the mayor of Auckland this local elections. While Auckland councillor Kerrin Leoni has emerged as Brown's main challenger, there are still a number of lower-profile candidates vying for the city's top job. This year's contenders include a former political party leader, someone who is running for mayor in Auckland and Christchurch, and a university student. RNZ asked lower-profile candidates, who could be contacted, for one sentence explaining why they want to be mayor and one sentence stating a policy of theirs they want Aucklanders to know about. Six responded. Eric Chuah. Photo: Supplied Dr Chuah, a former strategist for Peter Dunne and the United Future Party, stood as a candidate in the Auckland electorate of Maungakiekie in the 2023 general election. He told RNZ he is over 61. He now had his sights set on the Auckland mayoralty and was going after what he considered to be unnecessary spending, like the CBD's million-dollar Christmas tree . Why do you want to be mayor? "Ensure reduction of excessive spending, transparency and accountability in council tendering process and staff recruitment where proper systems of management, operational and decision making are implemented to ensure fulfilment of Auckland Council's Long-Term Plans and not reacting to situations with ad-hoc solutions and stop gap measures creating long term problems as Auckland Council debt has increased from $11 billion to $14 billion, a $3 billion debt increase in 3 years and rates have increase [sic] 40% in 3 years where a house priced at $1.4 million has a $4000 rate and $1000 water rates with a projected 48% increase in 2026, stated by an Auckland Councilor [sic] in last Governance meeting on July 31st 2025." Policy "Reviewing, auditing past expenditures in contract awards, tendering systems, allocation of ratepayers monies via adopting and implementing, transparency, accountability systems of staff recruitment, management systems of the various CCOs (Council Controlled Organizations) such as AT (Auckland), so as to reduce unnecessary operational costs while maintaining jobs, unnecessary expenditure such as $1 million Christmas tree (Dec.2024), $1 million toilet and $1.2 billion road cone spent from 2020-2025 of which $400-$500 million could be overspent." Ted Johnston. Photo: Supplied The lawyer and former leader of the New Conservative Party is having another crack at the mayoralty after getting hit with an egg during a mayoral candidate debate in 2022. This time around, the 64-year-old has honed in on the city's traffic woes. Why do you want to be mayor? "I am seeking the Mayoralty as, no other candidate has solutions for Auckland's growing problems, and I cannot implement these crucial reforms, otherwise." Policy "A vastly expanded, efficient and inexpensive public rail system is crucial to bolster Auckland's economy and development, as well as to lower congestion and costs for all Aucklanders." Rob McNeil. Photo: Supplied McNeil is running under the Animal Justice Party banner. On the party's website, it stated the animal advocate loved long walks on the Auckland CBD waterfront. Why do you want to be mayor? "I will ensure animals have a voice in Auckland's decision-making, recognising the intrinsic link between animal welfare, environmental health, and human well-being. Lasting progress begins with local councils committed to protecting the interconnected web of all life." Policy "Among other policies for Aucklanders, we're fighting for mandatory funded desexing of dogs and cats - to stop the preventable deaths of thousands of animals while reducing council costs and community." Ryan Pausina. Photo: Supplied Pausina was an Auckland mayoral candidate in 2022. He told RNZ he is 48-years-old and a product developer. Why do you want to be mayor? "For starters, I have defined for the first time in history who should be the mayor of Auckland, out of all of us, who should be the mayor is determined by expertise in the fields of science relative to city works, city management and city civics, of which, that one person is required to serve for that role." Policy "Static speed-bump phase-out is a fun one, every time a vehicle slows down and passes over a speed bump, then accelerates away, a tiny teaspoon of petrol is wasted and in Sweden, they have created a speed bump technology to govern speed without wasting fuel or energy and annoyance in the process." Jason Pieterse. Photo: Supplied Pieterse told RNZ he is a 24-year-old engineering student doing his honours at AUT, making him the youngest of the bunch. Why do you want to be mayor? "I am running for mayor because I want to drive forward changes that support and improve the lives of every resident that calls this city home." Policy "I would have to say my most interesting policy is a housing proposal that would make near all housing costs much more affordable and accessible." Peter Wakeman. Photo: Supplied The 64-year-old described himself as a former passenger jet pilot. He is also running for mayor of Christchurch this local elections. A candidate with his name has run for mayor of Christchurch in almost every election since 1998. Why do you want to be mayor? "Wakeman is standing for Mayor in Auckland and Christchurch to be more effective in achieving Government policy that puts more money in everyone's pockets." Policy "Get more money into circulation by getting central Government to replace GST with Financial transaction tax (FTT) to reduce all of our costs of living and creation of debt free money by RBNZ." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
5 hours ago
- RNZ News
Mediawatch: RNZ flags changes to claw back listeners
Photo: RNZ / Cole Eastham-Farrelly It's not news that RNZ National has been losing listeners in recent years. It's been mostly downhill year-on-year since 2019 when over 616,000 people a week were tuning in. This year it has dropped to below 470,000. This week RNZ staff were told that efforts to shore that up have not worked so far - and now there's a new plan underway. "We now need to take a different approach," RNZ chief executive Paul Thompson said. RNZ is appointing a Chief Audio Officer to oversee it and targeting half a million RNZ National listeners by November next year - and another 20,000 one year later. RNZ's target audience will now be "broadly 50-69, male and female" and RNZ National staff will be given data to "better tailor the station to their preferences," Thompson said. "Growing the presence in Auckland" is also a key part of the new strategy. RNZ is moving its Auckland operation into TVNZ's central Auckland premises later this year and now plans to host more radio and production roles there. The new plan is in part influenced by a review carried out by former head of news Richard Sutherland, who left RNZ in July 2023. "I asked him to be frank and robust, and that is what has been delivered," Thompson said when RNZ released it this week after Official Information Act requests. Sutherland certainly has. He warned that if people stop listening it "feeds the idea RNZ is sliding into irrelevance." "Irrelevant stuff gets switched off," he added. He said Auckland must be treated as "the strategic centre of gravity" rather than Wellington. "While the capital remains politically important, the views and preferences of its residents are the tail wagging the RNZ national dog," he wrote. Sutherland's good news for RNZ that he said it has "strengths that provide a foundation for renewal". He cited credible news, trust, and recognition - and public service commercial-free content that's available on many platforms and shared with other media. But he said there was a lack of understanding of the audience within RNZ National as well as a lack of cohesion and urgency. After candid 'no notes' conversations with around 50 staff, he concluded there was "blameshifting" and "low ambition" among staff. He also cited a widespread belief that live listening was a "sunset activity" - and that needed to be stamped out from the top at RNZ. He concluded RNZ National was "trying to please everyone" but it should target people over 50, and primarily 50-69 year olds. "Nuance can wait," Sutherland said, recognising that approach sounded blunt. Sutherland also said - very bluntly - "some people should not be on air". He didn't say who, but he did say RNZ needs one front-rank daytime host from outside urgently - and also an "urgent audit" of its on-air staff. Sutherland's review says key RNZ National time slots should be refreshed "where existing presenters don't align with the target audience." RNZ has told staff there will be "a strong focus on lifting on-air standards" and it is expanding presentation training and running more 'air checks' of the existing output. While some of Sutherland's recommendations align with RNZ's new strategy, RNZ said it was "just one input". The yet-to-be appointed Chief Audio Officer will determine whether Sutherland's other urgings are actioned. But not for nothing did RNZ pay $30,000 for what Thompson - also RNZ's editor-in-chief - described as "an actionable high-level blueprint to turn the station around". RNZ's briefing to staff also said the plan is "not about reducing kaimahi numbers". But it also said "every part of RNZ National needs to work for the available audience - and will be reviewed to ensure that is the case". "This may mean that some programmes or shows are discontinued." Sutherland's review recommended Morning Report and key staff should relocate fully to Auckland, something RNZ said was already underway. On-air changes introduced to Morning Report this month include shorter news bulletins, more conversational treatments of sport, rural and business news, a weekly chief executive officer interview and sports discussion panel, and a head-to-head with opposing MPs every Wednesday. The programme now features fewer recorded and live news interviews, though that varies depending on when news breaks and develops. A sign of further things to come elsewhere on air under the new audio plan, perhaps. Sutherland urged RNZ's top brass to ignore the criticism and opposition his sweeping changes would inevitably spark. Mediawatch asked to speak to Sutherland about his blunt review of his former employer. He deferred to Thompson who also declined. Storm Day, Accenture Song's NZ Lead. Photo: supplied More than ever, broadcasters seeking to retain or boost audiences need to give them what they want. But what people expect is harder to gauge now that people can choose from public and commercial radio networks, commercial TV channels, social media platforms, and global video streaming giants like Netflix and Disney+. Consultancy business Accenture Song has just released its second annual Brand Experience Gap study putting numbers on the gap between what 80 different New Zealand businesses promise - and what the punters reckon they deliver. Out of six different sectors, media and entertainment companies recorded the biggest gap - 79 percent - in the survey of 1500 people. "The gap is the difference between what a brand promises and what customers actually experience. When the gap is small customers feel valued and are more loyal. And when that gap is wide, trust erodes and people just walk away," Accenture Song's New Zealand lead Storm Day told Mediawatch . The survey does not name specific media outlets or individual scores for them, but Day told Mediawatch it covered streaming services, pay TV, free-to-air broadcasters, online news publishers, and radio audio streaming providers. "The sample is representative of all the major players in New Zealand," she said. "The industry average across all sectors is sitting at 72 percent - so I'm afraid the media and the entertainment sector is our worst performing one. Seventy-nine percent say that media providers are not delivering on their promises, which is pretty scary." Most surveys of trust in news and media are based on peoples' perceptions. Respondents' disapproval of specific practices - such as oft-cited 'sensationalism' - seems to sour their opinion of the entire media. Likewise, those who get news mixed in with other content via social media are much less likely to trust the news overall. "I think that's always at play. Audiences don't always separate the ecosystem in the same way that the industry does," Day told Mediawatch . "If they have a bad experience, whether it's with a regulated newsroom or a global online platform, it really does colour how they view the whole sector. It means that regulated media can't rely on standards alone. "To protect their reputation, they have to keep proving value and trust through the experience they deliver every day. "That's why it's even more important that we actually deliver on trust and think about the customer, not just standards or regulations." Day said regularly refreshing content, offering high quality exclusive content, and ease of access across devices were things people cited for securing their loyalty. A higher number of people said they were getting high quality stuff from our media companies. But the survey also recorded an 81 percent gap in belief that media outlets report with fairness and impartiality. "The biggest gap was people feeling valued and recognised, which tells us that audiences feel quite anonymous and not engaged. Trust was also really fragile. There was an 84 percent gap around acting with honesty, integrity, and keeping promises. "For an industry built on credibility, that's a major risk. But it's also a place where decisive action can make a big difference. Things like clickbait and transparency are really key things to address." Could big changes at RNZ end up widening the 'brand experience' gap? "Purpose... is a great way to galvanise a business reset. Secondly, so is moving beyond just delivering content to actually genuinely recognising audiences. You can use technology in service of that... to genuinely personalise what we're putting out there and actively engage with people. "AI can be used to personalise content and discovery - and flag relevant content and programming. And for local broadcasters especially, making your contribution to New Zealand really visible. Telling people what you're doing and how you're doing it... needs to work hand in hand to build that trust and connection with people." Dr Merja Myllylahti and Dr Greg Treadwell from the AUT's Centre for Journalism, Media and Democracy. Photo: RNZ / Jeremy Ansell Does the Accenture Song survey show the media's reputation rises and falls together - and no one outlet could buck the trend on its own anyway? "I think this sector has had a really tough year. Economic climate as well has a massive influence on the gap. When people are kind of under stress, they really are much more selective about where they spend their money, where they spend their time." But this week, the authors of the most comprehensive survey of trust in New Zealand media said it shows news media can't simply blame 'bad times' and general cynicism for slumping results. "News isn't just another institution like the state, a corporation or a non-profit organisation," said Greg Treadwell and Merja Myllylahti from Auckland University of Technology's Centre for Journalism, Media And Democracy. "We found the trajectories of trust levels for other social institutions - governments, business, NGOs - showed clear links to each other as they rose and fell, more or less in sync, over time. "Trust in news however, has been in its own lane. A fall in trust in government and politics, in other words, is not a predictor of a fall in trust in news," they wrote in The Conversation . "Survey respondents tell us they perceive the news to be politically biased (both left and right), and because too much seems to be opinion masquerading as news. "It seems the trust problems democracies have with their news services need to be addressed on their own terms, not as part of an overall picture." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
