Govt Releases CCUS Framework for Consultation to Reduce CO2 Emissions

The implementation of CCUS is projected to reduce New Zealand’s net CO2 emissions by 4.65 megatonnes over the next two Emission Reduction Plan periods (2026-30 and 2031-35).

ArticleThe Coalition Government has unveiled a Carbon Capture, Utilisation, and Storage (CCUS) framework for consultation, aimed at providing the industry with an opportunity to reduce net CO2 emissions from gas use and production, announced Energy Minister Simeon Brown.

“Our Government is dedicated to reducing regulatory obstacles and fostering investment in the energy sector. As part of our strategy to double renewable electricity and transition to a low-emission economy, we are supporting innovative technologies that lower net CO2 emissions,” stated Mr. Brown.

The implementation of CCUS is projected to reduce New Zealand’s net CO2 emissions by 4.65 megatonnes over the next two Emission Reduction Plan periods (2026-30 and 2031-35).

“CCUS offers a significant means to reduce net CO2 emissions from essential industries, such as natural gas production, that sustain our economy. Capturing CO2 emissions allows these industries to transition to a low-emission economy cost-effectively, bolstering our energy security and aligning our policies with other jurisdictions that recognize CCUS as part of their net-zero framework.

“Facilitating CCUS will attract investment to utilize captured CO2 emissions, creating valuable products and materials that benefit New Zealanders. This initiative operates alongside the Emissions Trading Scheme (ETS), our key tool for reducing emissions.

“While capturing and utilizing CO2 emissions, the framework introduced today includes a monitoring regime to ensure that captured carbon is effectively and safely stored, a vital aspect of any CCUS framework,” he added.

Natural gas production levels in New Zealand have hit a 40-year low following the previous government’s decision to ban new offshore oil and gas exploration.

“Natural gas production is crucial as we transition to renewable energy. Our proposed CCUS framework, along with other innovations, will enable a more sustainable transition to a low-emission economy by capturing carbon from natural gas,” said Mr. Brown.