Not The Growth We Need: Budget 2025 Delivers Growing Energy Bills And Energy Insecurity
Just last week Transpower warned New Zealand is at risk of electricity blackouts unless more supply is brought online.
'As Kiwis face sharply rising energy bills, businesses shut down or scale back production due to the energy crisis, and our nation entertains the thought of periods without power in the depths of winter, it defies belief that Budget 2025 fails to deliver adequate investment or action,' says NZGBC chief executive Andrew Eagles.
Despite committing at COP26 to a global doubling of energy efficiency and tripling of renewable electricity, the government has cut funding for its own energy champions; the Energy Efficiency and Conservation Authority (EECA), by over $14 million a year – or $56 million over the next four vital years leading to our 2030 climate targets.
'Instead of making progress, Budget 2025 takes us a step backwards – slashing vital funding for efforts to support clean, efficient energy use, and instead supporting a ramping up of fossil fuel exploration,'
Budget 2025 sets aside $200 million over four years for co-investment in new gas fields.
'Rather than investing in solutions, this budget aims to subsidise new gas fields at a time when nations around the globe are transitioning away from it. Our neighbours in Australia are even banning new household gas connections and supporting alternative heating solutions, yet our government is actively trying to continue our reliance on fossil fuels.'
'Investing in a sustainable energy system and energy efficiency would have been a huge win – not only because it supports New Zealand households and business to keep electricity bills down, but it's the cheapest way of improving supply.'
Scaling up help for homes and businesses to be more energy efficient through switching to electric heating, better insulation, ventilation, smarter design, and storing energy, reduces how much peak energy and gas we use at home. That way, more energy is available for businesses that depend on it to keep working. It's a win for Kiwi's back pockets, energy security, and our businesses.
Nothing for Kiwis living in unhealthy, cold homes.
While it's great to see further investment in our health system, it remains an ambulance at the bottom of the cliff approach. In-line with decades of inaction, Budget 2025 fails to address the woeful state of New Zealand's homes which are putting huge pressure on the health system.
Last year's budget scaled back the hugely successful Warmer Kiwi Homes, this year the trend continues, with no new support for arguably the best cost-to-benefit investment a government could make.
'Our country's health system is struggling, our rates of respiratory illness are shameful, and the state of New Zealand's homes is making thousands of Kiwis sick. A really savvy investment would have been to help ease the burden at the cause.'
Where's climate?
Finally, there appears to be no support in this year's budget for businesses, households or New Zealand generally to decarbonise, or to address the gaping hole in our Emissions Reduction Plan left by the expected failure of carbon capture and storage initiatives.
'We're in a climate crisis, yet there's nothing in Budget 2025 for our Climate Minister to even issue a press release on. That about sums it up really.'
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