Hon Pete Hodgson: Strong interest in Projects to Reduce Emissions
Mon, 30 Aug 2004
Second tendering round of Projects to Reduce Emissions programme opens.
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Businesses, local authorities, other organisations and individuals are showing strong interest in tendering for Kyoto
Protocol emission units or 'carbon credits' for projects that will reduce greenhouse gas emissions.
The tender opens today for a pool of six million emission units put up by the government. Those that are successful in
the tender round will be awarded emissions units against projects that will reduce greenhouse gas emissions during the
first commitment period of the Kyoto Protocol, 2008-2012.
Emission units are effectively allowances for greenhouse gas emissions. Holders can trade them on developing
international markets. Government and large emitters alike buy them to offset their own emissions against prescribed
allowances under the Kyoto protocol. Just last week, the New Zealand and Dutch governments signed an agreement to
promote the sale of emissions units. Units awarded to a New Zealand wind farm have already been sold in the Netherlands.
"The second tender round in the Projects to Reduce Emissions programme is an example of how the Kyoto Protocol opens up
new business opportunities," says the Convenor of the Ministerial Group on Climate Change, Pete Hodgson.
"The first tender round, held last year, was very successful with four million units being awarded to 15 projects. These
included wind farms, hydro-electricity schemes, bio-energy and co-generation schemes. This programme will benefit New
Zealand by bringing forward projects and the resultant reductions in greenhouse gas emissions. It offers tangible
rewards for projects that take us further towards a clean, green and sustainable energy future.
"From the level of interest expressed at pre-tender briefings, we expect this tender round to be keenly contested. This
means we will be able to choose the very best projects for reducing emissions. We also expect to see a high level of
innovation in many of the projects."
More than 150 representatives of heavy industries, power, oil and waste companies, local authorities, transport
companies and smaller technology-based firms attended pre-tender briefings in Auckland, Wellington and Christchurch last
week. Tenders close on Friday 15 October 2004 with the first announcements of successful projects announced before
Christmas. Documentation is available online from the Government Electronic Tenders Service at www.gets.govt.nz.
ENDS