Country:New Zealand
Policy status:In Force
Date Effective:2014
Policy Type:Voluntary Approaches>Public Voluntary Schemes
Policy Target:Transport>Vehicle type>Heavy-duty vehicles, Transport>Non-engine components>Tyres, Industry, Commercial/Industrial Equipment, Transport, Transport>Non-engine components, Transport>Vehicle type
Agency:Energy Efficiency and Conservation Authority

Four new carbon projects were announced in April and May 2014. The new three-year, NZD 5.35 million package was focused on enhancing business and household productivity and reducing carbon dioxide emissions in the two areas of greatest potential savings – transport and industrial heat – and used information campaigns, energy audits, training workshops and industry partnerships to deliver.

The projects announced were:  

  • energy efficiency improvements in meat and dairy heat plants;
  • a renewable energy ‘hub’ for business heat in Southland;
  • a programme to promote fuel efficient tyres; and
  • an expanded programme for heavy vehicle fleets.  

1) Energy efficiency improvements in meat and dairy heat plants

This programme aimed to improve the energy efficiency of heat plant in the meat and dairy processing sectors by targeting 50 sites in its first year. Industrial processes in the meat and dairy sector account for 6% of New Zealand’s business energy use and most of this energy comes from fossil fuels. There are significant opportunities for site operators to reduce their costs and generate less carbon dioxide through more efficient use of energy. EECA contributed to the costs of feasibility studies and business cases to demonstrate the value of energy efficiency measures.  This pilot project ended at 30 June 2016. Support for feasibility studies to identify energy and carbon savings projects within processing sites will be integrated into the large energy user programme (see EECA Business Programmes). In 2016 processing sites implemented, or are implementing, savings equivalent to 9,600 tonnes carbon per annum significantly exceeding the target of 7,000 tonnes.

2) A renewable energy "hub" for business heat in Southland  

Switching from fossil fuels to renewable energy resources – such as wood residues or geothermal steam – to generate heat can significantly reduce New Zealand’s carbon emissions. Wood is often overlooked as a clean energy source because potential users are concerned about supply certainty, and potential suppliers do not see sufficient current demand to justify investment. This project established a sustainable market for renewable heat in Southland. The hub was designed to connect potential suppliers of wood energy with potential users of heat such as industry, manufacturers, and commercial buildings, to reduce risks of investment on both supply and demand sides. The project was also designed to be a catalyst for similar initiatives in other regions. The Wood Energy South project focused on identifying cost-effective opportunities for businesses to transition to wood energy. Several small scale conversions have happened and will continue to happen as boilers come up for replacement. A 2015 review of the project found that at least one or more medium to large industrial cornerstone project/s are needed to create more opportunities for further conversions. These cornerstone conversions require significant business decisions and although EECA is supporting these businesses in providing information through the large energy user programme, the timing for these conversions are set by a number of business drivers. There are a number of projects in the pipeline. Should at least two large projects currently under consideration go ahead, this would exceed the pilot projects target.

3) A programme to promote fuel-efficient tyres

Fuel efficient tyres are available from all the major tyre manufacturers but EECA’s market research showed that most consumers were not aware of them, and sales were comparatively low.  EECA worked with the tyre industry on an information campaign to increase consumer awareness about the benefits of fuel efficient tyres. The programme was launched on 5 October 2014 with advertisements, online advertising, and a web tool to help consumers choose fuel efficient tyres. EECA engaged with the tyre industry, signing partnerships with tyre importers that cover an estimated 60% of sales in the passenger tyre market. Despite the active participation of the tyre industry this programme did not deliver the expected carbon reductions. The programme was scaled back in April 2016 following a review. The tyre labelling and compliance components continue at a low-level market presence for proactive consumers and engaged retailers.

4) Expanded programme for heavy vehicle fleets

The Heavy Vehicle Fuel Efficiency programme was originally launched in July 2012, initially focusing on large fleets (see separate entry). The sector consumes about 20% of all transport energy – about 1 billion litres of diesel a year – and there is potential for fleet operators to save up to 15% of their fuel use.  Many fleet operators are not aware that they can make significant savings through fuel efficiency, or how to achieve these savings.

EECA’s heavy vehicle programme for large fleets (fleets that use more than 1 million litres of fuel per annum) had been running for two years, and this new carbon programme extended the programme from large to medium-sized fleets (fleets with fewer than 20 vehicles). The aim was to deliver savings of 1.1 million litres of fuel, and 2.7 million litres of fuel per annum by the end of the three-year programme.  

The extended programme held workshops, and recruited 12 medium-sized fleets.

Despite the active participation of the heavy vehicle fleet industry this programme did not delivering the expected carbon reduction and the project finished in April 2016.  

25 Energy Efficiency Recommendations Applied:Transport, Transport, Fuel-efficient non-engine components, Transport, Measures to improve vehicle fuel efficiency, Industry, Industry, High-efficiency industrial equipment and systems, Industry, Energy management, Industry, Complementary policies to support industrial energy efficiency
Related policies:EECA Business Programme

Last modified: Mon, 19 Sep 2016 15:05:32 CEST