Energy Resources Aotearoa welcomes the Government’s announcement on a Carbon Capture, Utilisation, and Storage (CCUS) framework that will enable businesses to benefit from storing carbon underground.

CCUS projects are an essential technology for meeting our emissions goals. The Intergovernmental Panel on Climate Change has previously stated that CCUS is "unavoidable" for countries aiming to achieve net emission reduction targets.

Energy Resources Aotearoa Chief Executive John Carnegie says that CCUS has considerable potential for reducing our emissions as New Zealand’s energy mix evolves and is encouraged to see the Government aiming to eliminate unnecessary duplication and overlap of regulatory requirements.

"A clear, risk-based framework is essential to give firms interested in potential CCUS projects confidence in predictable regulatory settings. Having a framework now opens the door to the possibility that projects will get off the drawing board"

"Many jurisdictions we look to for effective policy examples have already implemented supportive regulatory frameworks to manage CCUS. While we're still navigating the learning curve, this technology provides substantial emissions reduction and economic growth potential."

Carnegie says that moves to enable a CCUS framework go hand-in-hand with government aspirations to secure our future gas supply.

"These two things can’t be seen in isolation - without a strong supply of gas, New Zealand won’t be able to maximise the benefits of this technology or achieve secure and abundant energy for households and businesses."

Carnegie says that while the framework provides clarity for investors, a standalone permitting regime to govern CCUS would give them confidence investing in these long-term projects.

CCUS will play a vital role in our journey toward net-zero emissions, and Carnegie says Energy Resources Aotearoa is committed to collaborating with the Government to help it thrive.

"The Government’s second emissions reduction plan clearly outlines CCUS as a vital action required to meet the second and third emissions budgets. We look forward to collaborating with them to cut through red tape, get projects underway and secure our affordable energy future."

© Scoop Media