NZ launches loan scheme to help businesses move away from gas

The Government expects the programme to unlock up to NZ$1.2 billion in lending, helping businesses replace or reduce gas use while strengthening their ability to adapt to changing energy markets.

New Zealand businesses looking to reduce their reliance on natural gas can now access a new government-backed financing scheme designed to make energy transition projects more affordable. The Gas Transition Loan Guarantee Scheme officially opened on Friday, offering businesses easier access to loans for cleaner energy technologies and improved energy efficiency.

The initiative is backed by the Government and delivered through participating banks, with additional technical support available from the Energy Efficiency and Conservation Authority (EECA).

Government backs lower-cost financing

Finance Minister Nicola Willis said rising gas prices and uncertainty over future supply have created challenges for many businesses, making it important to support investments that lower energy costs and improve long-term resilience.

Businesses seeking financing can now register their interest with ANZ, ASB, BNZ, Kiwibank or Westpac. Under the scheme, the Government will guarantee 80 per cent of the default risk on eligible loans, allowing banks to offer more competitive lending terms and lower interest rates.

The Government expects the programme to unlock up to NZ$1.2 billion in lending, helping businesses replace or reduce gas use while strengthening their ability to adapt to changing energy markets.

Support for regional industries

Associate Energy Minister Shane Jones said the scheme is especially important for regional industries that depend heavily on gas, including food processing, wood processing, manufacturing and horticulture.

These sectors play a major role in supporting local jobs, communities and export earnings, making it important that businesses have practical options to manage higher energy costs. Jones said the financing programme complements the Government's efforts to improve domestic gas supply while giving businesses greater flexibility to invest in technologies that suit their operations.

EECA launches practical guidance

Energy Minister Simeon Brown said the loan scheme is intended to help businesses remain competitive while protecting employment. He noted that natural gas production has fallen sharply in recent years, making long-term gas contracts harder to secure for many companies.

Alongside the financing programme, EECA has introduced a range of advisory services to help businesses assess their energy use and identify suitable alternatives. The support includes tools to understand current gas consumption, technical assessments, fuel feasibility studies and regional workshops for businesses considering energy transition projects.

Companies interested in the scheme can review the eligibility criteria on the Treasury website and access EECA resources to help plan their next steps before making major investment decisions.