New Zealand PM Ardern announces $70 million fund for businesses to make fossil fuel switch

New Zealand Prime Minister Jacinda Ardern on Wednesday, November 11 announced a $70 million fund to help businesses switch from fossil fuels to clean energy. Ardern made that announcement during her visit to New Plymouth.

According to Radio New Zealand reports, the New Zealand Prime Minister along with her energy minister Megan Woods announced the fund and said it would provide businesses and industries access to financial support as they transition from boilers run on coal and gas, to cleaner electricity and biomass options.

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'Win-win' situation

As per the report, Ardern called it was a 'win-win' situation for both the climate and the economic recovery. She also said that the  $70 million funds will create jobs and stimulate the economy while demonstrating the administration's commitment to future-proofing the country's recovery. Meanwhile, the process heat makes up around a quarter of New Zealand's energy-related emissions.

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Funds will help in reducing the country's energy-related emissions

The funds would play an important role in reducing the country's energy-related emissions in the coming year, said Megan Woods. The new fund will target New Zealand's largest energy users to expedite their uptake of electrification and other technologies that will dramatically reduce emissions from these sectors and create clean energy jobs, the energy minister said.

As per reports, the Energy Efficiency and Conservation Authority will administer the fund and it will be available to New Zealand-based businesses who exhibit a commitment to decarbonising. Furthermore, Woods added that successful candidates will likely already have a plan in place to decarbonise their process heat, and will be able to demonstrate value for money as well as their contribution to the economic recovery by boosting economic activity and providing local employment.

Decisions on the funds will be made early in the next year and a minimum of $15 million will be made available in the first funding round, that opened for the applicants on Wednesday, with a December 14 deadline for proposals, as per reports.

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(Image Credits- AP)