Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA

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Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
D.1.SOI(21)
High contrast version

Statement
of Intent
1 July 2021 – 30 June 2025
Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
Contents
                                                                     Foreword from the Board                                                                                         3

                                                                     Our strategy                                                                                                    4

                                                                     Our three levers                                                                                                5

                                                                     Defining our purpose                                                                                            6

                                                                     The role of energy in climate change                                                                            8

                                                                     The make-up of energy-related emissions                                                                         9

                                                                     Our desired outcome                                                                                            10

                                                                     Our strategic focus areas                                                                                      12
                                                                         Productive and low-emissions business                                                                      14
                                                                         Efficient and low-emissions transport                                                                      16
                                                                         Energy efficient homes                                                                                     18
                                                                         Government leadership                                                                                      20
                                                                         Engage hearts and minds                                                                                    22

                                                                     Organisational capability                                                                                      24

                                                                     Glossary                                                                                                       25

                                                                     Presented to the House of Representatives pursuant to section 149 of the Crown Entities Act 2004.

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Front cover image: Wairau river   Contents image: Hooker river       Conservation Authority and abide by the other licence terms.
in Malborough, New Zealand.       in Canterbury, New Zealand.
Credit: Naz Abbas.                Credit: Little Leaf Photography.
Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
EECA Board members (left to right):
                                  Karen Sherry, Catherine Taylor, Norman
                                      Smith, Elena Trout, Dr Linda Wright
                                                         and David Coull.

                                                                            Te whakataki mai i te Poari
                                                                            Foreword from the Board
                                                                            Tēnā koutou, on behalf of the Board, I am pleased           Our reputation as an authority and delivery agent
                                                                            to present Te Tari Tiaki Pūngao the Energy Efficiency       for clean and clever energy use continues to build.
                                                                            and Conservation Authority’s (EECA) strategic               We are up for the challenge of delivering more in order
                                                                            direction for 2021–2025.                                    to help Aotearoa New Zealand achieve its commitment
                                                                                                                                        to net zero carbon by 2050 and 100% renewable
                                                                            With the beginnings of the COVID-19 response and
                                                                                                                                        electricity by 2030.
                                                                            recovery well underway and the Climate Change
                                                                            Commission’s final recommendations on our low-              Our programme roadmap will continue to be based
                                                                            emissions pathways released, it has never been more         on our five strategic focus areas, as outlined by this
                                                                            critical to accelerate our work towards a sustainable       document. The productive and low-emissions business
                                                                            energy system in Aotearoa New Zealand.                      strategic focus area will be a priority, particularly
                                                                                                                                        in industrial process heat given the significant emissions
                                                                            Since our last Statement of Intent, the urgency
                                                                                                                                        generated from this activity and the technologies that
                                                                            surrounding climate change has only intensified.
                                                                                                                                        are now available to switch to renewable forms of
                                                                            The energy sector is driving innovative, transformational
                                                                                                                                        energy. Likewise, efficient and low-emissions transport
                                                                            developments and EECA is responding by leading
                                                                                                                                        will also be a key focus considering the substantial
                                                                            bold programmes that leverage our highly renewable
                                                                                                                                        emissions from this sector’s use of energy, however,
                                                                            electricity system to reduce energy-related emissions.
                                                                                                                                        there remain significant barriers to overcome so
                                                                            EECA’s new strategic direction also includes the
                                                                                                                                        progress over the course of the next four years
                                                                            development of a Māori Engagement Strategy, which
                                                                                                                                        is less certain.
                                                                            aims to build appropriate relationships and partnerships
                                                                            with Māori based on priority areas of engagement            We again look forward to working with other parts
                                                                            relevant to EECA’s purpose, strategic levers,               of Government and wider stakeholders to mobilise
                                                                            and work programmes.                                        New Zealanders to be world leaders in clean and
                                                                                                                                        clever energy use and to accelerate the transition
                                                                            In the past year alone, EECA has played an instrumental
                                                                                                                                        to a low-emissions economy with a sustainable
                                                                            role in supporting the Government to administer
                                                                                                                                        energy system.
                                                                            a number of new or expanded programmes in the energy
                                                                            portfolio, including the Government Investment              Nāku noa, nā
                                                                            in Decarbonising Industry (GIDI) Fund, the State Sector
                                                                            Decarbonisation Fund (SSDF), and supporting the                                    Elena Trout
                                                                            COVID-19 Recovery “shovel-ready” programme.                                        Heamana Poari / Board Chair

2   2021–25 STATEMENT OF INTENT                                                                                                           2021–25 STATEMENT OF INTENT                             3
Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
Our strategy                                                                                                                   Our three levers

Our purpose
                                                                                                                               Achieving a bigger impact
Mobilise New Zealanders to be world leaders                                                                                    We work to create positive change across systems,
in clean and clever energy use.                                                                                                using a combination of three important levers.

Our strategic principles                                                                                                            Co-investing      We co-invest in energy efficient technologies and the use
                                                                                                                                                      of renewable sources of energy.

                                                                                                                                                      When there are financial barriers, we help to overcome these and
                                                                                                                                                      appropriately share the financial risk to incentivise energy users
Focus                  Understand               Define                    Join                       Display                                          to invest in technologies and renewable sources of energy that
on impact              the customer             the problem               the dots                   leadership
                                                                                                                                                      can make a real difference.
Pursue high-impact     Focus on those it is     Identify what’s           Work with and              Be proactive,
change with agility    important to influence   blocking progress         connect people and         have a fact-based point
and at pace.           and influence them       and tackle it             organisations who          of view, own it.
                       based on what they       head on.                  can be part of achieving
                       care about.                                        our purpose.
                                                                                                                                    Motivating        We motivate people to make clean and clever energy choices.

                                                                                                                                    people            We develop and communicate credible information that
                                                                                                                                                      will help targeted audiences to make informed choices,
Our strategic focus areas                                                                                                                             and to take action.

Productive and         Efficient and            Energy                    Government                 Engage hearts
low-emissions          low-emissions            efficient homes           leadership                 and minds
business               transport                                                                                                    Regulating        We regulate proven technologies and processes.
Motivate decision      Switch to efficient      Optimise New Zealand’s    Lead the transition        Create an enabling
                                                                                                                                                      We help prevent inefficient products and appliances from being
makers to accelerate   low-emissions            use of renewable energy   to a low-emissions         environment for
                                                                                                                                                      sold in New Zealand. We support the development of energy-related
the transition to a    technologies and         at home.                  economy.                   systemic change,
low-emissions          fuels to move people                                                          where clean and clever                           policies that create the “enabling environment” energy users need
economy.               and goods.                                                                    energy is expected                               to transition to a low-emissions economy.
                                                                                                     and demanded.

Our desired outcome
A sustainable energy system that supports the prosperity
and wellbeing of current and future generations.

4                         2021–25 STATEMENT OF INTENT                                                                                                                     2021–25 STATEMENT OF INTENT                      5
Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
Defining our purpose

                                                                                                                                                  To be clean and clever, first, we must change.
                                                                                                      We’re talking to everyone in Aotearoa,      This is a journey of growth, to adopt new
                                                       We are advocates for clean and clever energy   across the generations, from our pakeke     technologies, to use our power as consumers,
                                                       use. We are enablers who approach our          to our mokopuna. It will take all of us     and to create the system change necessary
                                                       kaupapa with passion and enthusiasm.           to make this work.                          to sustain our future.

    Our purpose: Mobilise                                                                             New Zealanders to be
     world leaders in clean                                                                           and clever energy use.

     We are a small but nimble country. We have              Clean energy is renewable, low-          Anything that gives you more while          Energy is in everything. If making,
     a role on the global stage to show what can be done     emissions energy. It focuses on oranga   using less energy is clever. We advocate    moving, using, or throwing it away
     – taking a leadership position, embodying the           that balances the needs of people with   for smart, adaptable, conscious, reliable   produces energy-related greenhouse
     ethic of kaitiakitanga, so others will follow suit.     the needs of our ecosystems.             ways to make and use energy.                gas emissions, then it’s in our lane.

6                  2021–25 STATEMENT OF INTENT                                                                                                    2021–25 STATEMENT OF INTENT                      7
Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
The role of energy                                                                                    The make-up of
in climate change                                                                                     energy-related emissions
                                                                                                      INDUSTRIAL                    WASTE
                                                                                                      PROCESSES

                           Climate change is the most urgent global environmental challenge
                              of our time. We must be bold and accelerate decarbonisation                                                                                                        13.6% LIGHT VEHICLES
                                 in order to leave future generations a planet that is healthy,                                                                                                        e.g. emissions from cars and vans

                                                                                                                                      4.0%
                                    stable and prosperous.

                                                                                                                             6. 2
                                                                                                                              %
                                                                                                                                                                                                 9.3% MANUFACTURING INDUSTRIES
                                       Ka ora a Papatūānuku, Ka ora Te Tangata.
                                                                                                                                                                                                      e.g. dairy, meat, textiles, products
                                        When the earth is well, the people will be well.
                                                                                                                                                                                                         & CONSTRUCTION

                                                                                                                                                              ENE
                                                                                                                                                                                                         e.g. plumbing, electrical services
                                            When it comes to climate change and reducing                                            Nearly 42%

                                                                                                                                                               RGY 41.7%
                                            greenhouse gas emissions, understanding the role
                                                                                                                             of NZ’s greenhouse                                                  6.1%    OTHER TRANSPORT
                                             of energy-related emissions is key. Emissions are
                                                                                                                             gas emissions come                                                          e.g. freight, buses, rail, domestic
                                              created when we burn fossil fuels in our business
                                              operations, in our homes, and in the ways we get
                                                                                                                               from energy use                                                           aviation
                                               around – whether burning gas for manufacturing,

                                                                                                          AGR
                                               burning coal to create electricity, driving a petrol

                                                                                                            I CU
                                                                                                                                                                                                 5.1%    ELECTRICITY GENERATION
                                               or diesel vehicle, or catching a flight.

                                                                                                              LT
                                                                                                                   RE                                                                                    e.g. gas, coal, geothermal sources

                                                                                                                U
                                                 We cannot continue to operate in this way.                             48                                                                               for electricity production
                                                 We must act urgently and decisively to reduce                               .1%
                                                 our energy-related emissions while adapting
                                                to the current consequences of climate change.                                                                                                   3.2% AGRICULTURE, FORESTRY,
                                               Improving energy efficiency, conserving energy                                                                                                         FISHING
                                                                                                                                                                                                      e.g. dairy/stock farming,
                                              and increasing our use of renewable sources
                                                                                                                                                                                                      horticulture, aquaculture, fishing
                                             of energy are crucial steps we must take
                                            to reduce our emissions profile.                                                                                                                             & COMMERCIAL
                                                                                                                                                                                                         e.g. retail, hospitality, education,
                                          For EECA, understanding the make-up
                                                                                                                                                                                                         healthcare
                                        of energy-related emissions is fundamental
                                      to accelerating the transition to a low-emissions
                                    economy. This is at the centre of our decision-making.
                                   We seek to determine where we can make the biggest
                                 impact in the shortest amount of time, then take action.             0.8% HOUSEHOLDS                             1.5%    OTHER ENERGY INDUSTRIES                2.1%    FUGITIVE EMISSIONS
                                                                                                           e.g. gas and wood use                          e.g. petroleum refining,                       e.g. methane release from coal
                                                                                                                                                          manufacture of coal and wood                   seams in mining, flaring of waste
                                                                                                                                                                                                         gases in oil and gas production

                                                                                                                                                  Source: Greenhouse Gas Inventory 1990-2019, Ministry for the Environment (2021); Light
                                                                                                                                                  vehicles and Other transport estimates are based on data from the Ministry of Business,
                                                                                                                                                  Innovation & Employment (MBIE) 2019 energy balances and MBIE Energy in New Zealand
                                                                                                                                                  (2020). Percentages may not add up to 100% due to rounding.

8        2021–25 STATEMENT OF INTENT                                                                                                                                          2021–25 STATEMENT OF INTENT                                       9
Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
Our desired outcome                                                                                                                      A sustainable energy system that supports the prosperity
                                                                                                                                         and wellbeing of current and future generations.

                                                                                       Government agencies       Government agencies       Businesses change their attitudes and
     New Zealand benefits from low-emissions                                           collaborate on                  transition to a     behaviours to reduce emissions
     transition lessons                                                                low-emissions policies          low-emissions
                                                                                       and initiatives                      economy
                                                                                                                                                                        Government’s low-emissions policies and
                                                          Government establishes low-emissions                                                                                 regulations are bold and credible
                                                                transport policies and initiatives

     Businesses benefit from improved
     energy productivity                                                                                        New Zealanders
                                                        Businesses meet emissions                                                          Businesses utilise low-emissions
                                                                 reduction targets                                       choose            innovations and insights
                                                                                                                  low-emissions
                                                                                                                mobility options
                       New Zealand households benefit from an
                       efficient, well-integrated, and resilient
                       renewable energy system

                                                                                                                                                                                   New Zealanders change their
     New Zealand adopts low-emissions                        New Zealanders live in energy efficient homes                                                                         climate-related attitudes and
     transport technologies and fuels                        that are warm, dry, and healthy                                                                                                         behaviours

10                        2021–25 STATEMENT OF INTENT                                                                                                               2021–25 STATEMENT OF INTENT                    11
Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
Our strategic
                                                                    focus areas
                                                                    We will deliver activities in five
                                                                    strategic focus areas to achieve
                                                                    the outcomes we seek.

                                   Image: Britomart Train Station
                                   in Auckland, New Zealand.

12   2021–25 STATEMENT OF INTENT                                        2021–25 STATEMENT OF INTENT      13
Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
The outcomes we seek

PRODUCTIVE                                                                                                » Businesses meet emissions reductions targets
AND LOW-EMISSIONS
BUSINESS                                                                                                  » Businesses utilise low-emissions innovations and insights
                                                      40%              of New Zealand’s energy-related
                                                                       emissions comes from business
Motivate decision-makers to accelerate                 (12.8 MTCO2e)
                                                                                                          » Businesses benefit from improved energy productivity
the transition to a low-emissions economy

Why business?                                                                                            The actions we will prioritise to achieve our outcomes

A massive 40% of New Zealand’s energy-related        manufacturing and space heating. The good           STRENGTHEN IMPACT MEASUREMENT                                  INVESTIGATE NEW OPPORTUNITIES
emissions comes from the business sector. This       news is, there are a number of low-emissions        Improve our capability to support businesses’                  Explore new sectors and interventions and develop
is why business is one of EECA’s key focus areas,    alternatives available for businesses that not      low-emissions pathways through better data                     the most promising opportunities.
we support the business sector to be more            only reduce emissions but can also lower energy     utilisation.
productive with less emissions.                      costs and improve profitability.
                                                                                                         ACCELERATE THE TRANSITION                                      EXPLORE NEW FUNDING MECHANISMS
The largest portion of energy-related emissions      Businesses need to act now. EECA motivates
from businesses come from the burning of fossil      the business sector to step up and accelerate       Fast-track investment and implementation where                 Explore new funding and delivery approaches
                                                                                                         high-impact opportunities have been identified, using          that address the decarbonisation challenge.
fuels for ‘process heat’ – the steam, hot water      the transition to a low-emissions economy.
                                                                                                         all available tools and levers.
or hot gases used in industrial processing,

                                                                                                         How we will track New Zealand’s progress

                                                                                                                                                                                                                      Desired
                                                                                                          Our intended outcomes             How these outcomes are measured                   Baseline
                                                                                                                                                                                                                      trend

                                                                                                                                            Avoided energy-related emissions resulting from
                                                                                                         Businesses meet emissions
                                                                                                                                            EECA-funded business programmes (excluding the    62,100 tCO2e
                                                                                                         reductions targets
                                                                                                                                            Energy Transition Accelerator (ETA) programme).

Sustainable Development Goals                        The Living Standards Framework
                                                                                                         Businesses utilise low-emissions   Total energy and energy-related emissions
                                                                                                                                                                                              740,000 tCO2e
                                                                                                         innovations and insights           addressed by completed ETAs.
                                                            Environment

                                                            Jobs and earnings
                                                                                                         Businesses benefit from            Annual energy use by commercial
                                                            Knowledge and skills                                                                                                              142 GWh (0.51 PJ)
                                                                                                         improved energy productivity       and industrial appliances.

14                     2021–25 STATEMENT OF INTENT                                                                                                                            2021–25 STATEMENT OF INTENT                       15
Statement of Intent - D.1.SOI(21) High contrast version - 1 July 2021 - 30 June 2025 - EECA
The outcomes we seek

EFFICIENT AND                                                                                                               » New Zealand adopts low-emissions transport technologies and fuels
LOW-EMISSIONS
TRANSPORT                                                                                                                   » Government establishes low-emissions transport policies and initiatives
                                                          51%               of New Zealand’s energy-related
                                                                            emissions comes from transport
Switch to efficient low-emissions                         (16.4 MTCO2e)
                                                                                                                            » New Zealanders choose low-emissions mobility options
technologies and fuels
to move people and goods

Why transport?                                                                                                            The actions we will prioritise to achieve our outcomes

Transport is the cause of over half of our            This enables New Zealanders to get more                             SCALE INFRASTRUCTURE                                              DEMONSTRATE LOW-EMISSIONS TECHNOLOGIES
energy-related emissions, which is why this           out of life using transport options that produce                    Support the development of vehicle charging and                   Encourage innovation and prove the application of
is a key focus area for EECA. When we burn            fewer emissions.                                                    refuelling infrastructure, and increase the adoption              scalable low-emissions technologies and fuels.
fossil fuels like petrol and diesel to power our                                                                          of commercially available low-emissions vehicles and
                                                      As an example, increased uptake
cars, trucks, buses, boats, trains and planes,                                                                            other support services.
                                                      of petrol hybrid and electric vehicles could
we produce harmful emissions that contribute                                                                              TRANSITION LARGE FLEETS                                           INFLUENCE POLICY AND SUPPORT INITIATIVES
                                                      reduce New Zealand’s carbon emissions
to the negative effects of climate change.
                                                      by 1.4–5.1 million tonnes by 2035¹.                                 Work with large fleets to adopt transition plans, and             Provide data and market knowledge to support
EECA will provide support and insights to help        Let’s change the way we move.                                       provide advice and technical assistance to make                   initiatives that improve efficiency, optimise or reduce
New Zealand optimise the way people and                                                                                   informed decisions.                                               transport-related emissions, and influence low-
goods are transported, and to utilise efficient       1
                                                       The lower limit applies to the Tui scenario where climate change                                                                     emissions transport policy options.
low-emissions technologies and fuels.                 is competing with other priorities, while the upper limit applies
                                                      to the Kea scenario where it is seen as the most pressing issue
                                                      in New Zealand. These are results from the TIMES-NZ 2.0 model
                                                                                                                          How we will track New Zealand’s progress
                                                      developed by EECA, the Business Energy Council and the
                                                      Paul Scherrer Institute.
                                                                                                                                                                                                                                                   Desired
                                                                                                                           Our intended outcomes             How these outcomes are measured                       Baseline
                                                                                                                                                                                                                                                   trend

                                                                                                                                                                                                                   20,584 electric vehicles
                                                                                                                                                            Number of low-emissions vehicles in the light fleet.
                                                                                                                                                                                                                   6,771 plug-in hybrid vehicles
                                                                                                                          New Zealand adopts
                                                                                                                                                            Number of low-emissions vehicles                       203 electric vehicles
                                                                                                                          low-emissions transport
                                                                                                                                                            in the heavy fleet (freight, buses, ferries etc.).     33 plug-in hybrid vehicles
                                                                                                                          technologies and fuels
Sustainable Development Goals                         The Living Standards Framework
                                                                                                                                                            Carbon intensity of vehicles entering
                                                                                                                                                                                                                   169.9 gCO2/km
                                                                                                                                                            the light vehicle fleet.
                                                               Environment
                                                                                                                          Government establishes
                                                                                                                                                            Number of low-emissions transport policies
                                                                                                                          low-emissions transport                                                                  Baseline to be established
                                                               Knowledge and skills                                                                         and initiatives established by the Government.
                                                                                                                          policies and initiatives
                                                               Health
                                                                                                                          New Zealanders choose low-                                                               3.27 tCO2e
                                                                                                                                                            Transport emissions per person.
                                                               Subjective wellbeing                                       emissions mobility options                                                               per person

16                      2021–25 STATEMENT OF INTENT                                                                                                                                                2021–25 STATEMENT OF INTENT                               17
The outcomes we seek

ENERGY                                                                                                    » New Zealanders live in energy efficient homes that are warm, dry, and healthy
EFFICIENT
HOMES                                                                                                     » N
                                                                                                             ew Zealand households benefit from an efficient, well-integrated,
                                                        7%             of New Zealand’s energy-related
                                                                       emissions comes from households
                                                                                                            and resilient renewable energy system
Optimise New Zealand’s                                  (2.2 MTCO2e)

use of renewable energy
at home

Why homes?                                                                                               The actions we will prioritise to achieve our outcomes

Our homes are the beating heart of our nation,       system, but households have a significant           IMPROVE EXISTING                            DELIVER STANDARDS                               EXTEND REGULATORY
where friends and whānau gather to eat, work,        impact on New Zealand’s peak electricity            HOMES                                       AND GUIDANCE                                    ACTIVITIES
sleep, celebrate and everything else in between.     use – when electricity generation tends
Our energy consciousness starts here. This is        to be at its least renewable and most expensive     Increase the energy efficiency              Develop Publicly Available                      Extend Minimum Energy Performance
why homes are included as one of EECA’s five         to produce (for example, winter evenings).          of existing homes through                   Specifications (PAS) to accelerate              Standards (MEPS) to include additional
                                                                                                         improved insulation and heating.            the adoption of new technologies,               products and increase levels for
main focus areas, to ensure New Zealanders
                                                     Improving the energy efficiency                                                                 and focus on standards and                      existing products as necessary; refine
consume less energy at home to live more
                                                     of New Zealanders’ homes not only reduces                                                       guidance for Demand Flexibility/                and promote Mandatory Energy
vibrant and healthy lives.                                                                                                                           Demand Response technologies                    Performance Labelling (MEPL), working
                                                     emissions, it plays a vital role in making sure
We use energy in our homes to power everything       whānau can enjoy warm, dry and healthy                                                          that accelerate market uptake.                  in synergy with increased MEPS levels;
                                                                                                                                                                                                     and continue to enforce regulations.
from appliances to hot water. The dominant           homes – without increased energy costs.
energy source is our highly renewable electricity
                                                                                                         How we will track New Zealand’s progress

                                                                                                                                                                                                                                 Desired
                                                                                                          Our intended outcomes                How these outcomes are measured                         Baseline
                                                                                                                                                                                                                                 trend

                                                                                                                                               Energy use of residential appliances per capita.        1.28 PJ/ 100,000 people
                                                                                                         New Zealanders live in energy
                                                                                                         efficient homes that are warm,
                                                                                                         dry, and healthy
Sustainable Development Goals                        The Living Standards Framework                                                            Total number of insulation and heating retrofits
                                                                                                                                               installed in homes through the Warmer Kiwi Homes        63,803 retrofits
                                                                                                                                               programme.
                                                            Health
                                                            Housing
                                                                                                                                               Energy savings per annum from improvements
                                                            Knowledge and skills                         New Zealand households benefit
                                                                                                                                               in the electricity efficiency of household products
                                                                                                         from an efficient, well-integrated,
                                                                                                                                               through Minimum Energy Performance Standards            197 GWh (0.71 PJ)
                                                            Income and consumption                       and resilient renewable
                                                                                                                                               (MEPS) and Mandatory Energy Performance
                                                                                                         energy system
                                                                                                                                               Labelling (MEPL).
                                                            Environment

18                     2021–25 STATEMENT OF INTENT                                                                                                                                 2021–25 STATEMENT OF INTENT                             19
The outcomes we seek

GOVERNMENT                                                                                                  » Government agencies transition to a low-emissions economy
LEADERSHIP
                                                                                                            » New Zealand benefits from low-emissions transition lessons
Lead the transition
to a low-emissions economy
                                                        2%             of New Zealand’s energy-related
                                                                       emissions comes from
                                                                       Government agencies
                                                        (0.6 MTCO2e)
                                                                                                            » Government agencies collaborate on low-emissions policies and initiatives

Why Government leadership?                                                                                The actions we will prioritise to achieve our outcomes

The transition to a low-emissions economy            For example, Government agencies own over            TAKE DIRECT ACTION                        LEARN AND SHARE                                  DISPLAY THOUGHT
calls for the Government to have its own house       16,000 vehicles – many of which are fossil-fuelled                                             AS AN AUTHORITY                                  LEADERSHIP
in order and to blaze the trail when it comes        and will eventually supply the second-hand
to generating more with less.                        market – and many public hospitals, universities     Effectively allocate public sector        Capture, anaylse and                             Focus our efforts where we are
                                                     and schools still use fossil-fuels for heating.      transition funding and provide            disseminate knowledge and                        best-placed to advance the
Government agencies must both demonstrate                                                                 support for cross-government              data from New Zealand’s                          transition, and provide insights
                                                     We have work to do.
the action required to accelerate the transition                                                          transition initiatives.                   transition in a timely manner.                   to policy input.
and influence New Zealanders to do the same,
which will be a priority for EECA. This means
developing bold policies, modelling clean
and clever energy use, and sharing
low-emissions lessons.
                                                                                                          How we will track New Zealand’s progress

                                                                                                                                                                                                                                  Desired
                                                                                                           Our intended outcomes               How these outcomes are measured                         Baseline
                                                                                                                                                                                                                                  trend

                                                                                                          Government agencies transition       Energy-related emissions tracked by the Carbon          Baseline
                                                                                                          to a low-emissions economy           Neutral Government Programme (CNGP).                    to be established

Sustainable Development Goals                        The Living Standards Framework
                                                                                                          New Zealand benefits                 Percentage of businesses that know how to find
                                                                                                          from low-emissions transition        information to support them to reduce their energy-     32%
                                                                                                          lessons                              related emissions.
                                                            Civic engagement and governance

                                                            Environment
                                                                                                          Government agencies collaborate
                                                                                                                                               Number of multi-agency low-emissions                    Baseline
                                                            Cultural identity                             on low-emissions policies
                                                                                                                                               Government policies and initiatives.                    to be established
                                                                                                          and initiatives

20                     2021–25 STATEMENT OF INTENT                                                                                                                               2021–25 STATEMENT OF INTENT                                21
The outcomes we seek

ENGAGE HEARTS                                                                                                  » New Zealanders change their climate-related attitudes and behaviours
AND MINDS
                                                      “Clean and clever energy use is about living            » Businesses change their attitudes and behaviours to reduce emissions
Create an enabling environment                          differently, in a way that gives us more.”
for systemic change, where clean
and clever energy is expected
                                                       Andrew Caseley, EECA Chief Executive                    » Government’s low-emissions policies and regulations are bold and credible
and demanded

Why hearts and minds?                                                                                     The actions we will prioritise to achieve our outcomes

Every day, we make decisions about how we           Efficient use of renewable energy can deliver         INSPIRE LONG-TERM BEHAVIOURAL SHIFTS                                   COLLABORATE ACROSS GOVERNMENT
use energy. It’s in everything we do, use, make     some serious benefits, but it requires collective
or buy. That’s why EECA will focus on engaging      action. If every New Zealander makes even             Inspire long-term attitude and behaviour changes,                      Focus our efforts where we are best-placed to lead
hearts and minds to encourage New Zealanders        small improvements to how they use energy,            and gain social licence to drive support for                           the intervention and seek to leverage others’
                                                                                                          systemic change.                                                       resources to deliver shared outcomes.
to get more out of life, while saving money and     if businesses invest in energy efficiency and
reducing carbon emissions - to live more with       commit to decarbonising, and if effective policies
less energy.                                        are adopted, we’ll see a significant decrease
                                                    in our energy-related emissions.
                                                    This isn’t just achievable – it’s necessary.

                                                                                                          How we will track New Zealand’s progress

                                                                                                                                                                                                                                          Desired
                                                                                                              Our intended outcomes                How these outcomes are measured                         Baseline
                                                                                                                                                                                                                                          trend

                                                                                                              New Zealanders change their          Percentage of people who agree we need to make
                                                                                                              climate-related attitudes and        changes to our energy use to address climate change,    72%
                                                                                                              behaviours                           even if it means a change to our current lifestyle.

Sustainable Development Goals                       The Living Standards Framework                            Businesses change their attitudes
                                                                                                                                                   Percentage of businesses actively seeking
                                                                                                                                                   to reduce the impact of their energy use                33%
                                                                                                              and behaviours to reduce emissions
                                                                                                                                                   and transport choices.
                                                           Subjective wellbeing
                                                           Knowledge and skills                               Government’s low-emissions
                                                                                                                                                   New Zealand progresses towards                          Baseline
                                                                                                              policies and regulations are bold
                                                           Environment                                        and credible
                                                                                                                                                   meeting its 2030 carbon targets2.                       to be established

                                                           Cultural identity
                                                                                                          New Zealand’s net emissions will be 30 per cent below 2005 (or 11 per cent below 1990) gross emissions for the period 1 January 2021
                                                                                                         2
                                                           Health
                                                                                                          to 31 December 2030. This target is New Zealand’s first Nationally Determined Contribution (NDC) under the Paris Agreement.

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Organisational capability                                                                                             Glossary

Our success will be underpinned by our People and           in a way that honours and strengthens our commitments     Carbon equivalent (CO2e)                Greenhouse gases – these include       appliances to ensure the worst-
Capability Strategy, which aims to achieve the following:   under Te Tiriti o Waitangi.                               – a measurement unit used               CO2, methane and nitrous oxide.        performing ones are kept out of
                                                                                                                      to indicate the global warming          In the energy sector, the burning      the New Zealand market.
» To develop highly effective influencers                   Under our People and Capability Strategy, we will
                                                                                                                      potential of greenhouse gases,          of fossil fuels (oil, coal, gas) for
                                                            develop a multi-level development framework that                                                                                         Mokopuna – grandchild or
» To attract, retain and develop exceptional people                                                                   using carbon dioxide (CO2)              heat, transport or electricity
                                                            offers targeted development, in tandem with further                                                                                      descendant.
                                                                                                                      as a reference gas.                     generation creates greenhouse
» To nurture and empower a collaborative workforce          developing effective coaching practices in our leaders.
                                                                                                                                                              gas emissions. Greenhouse gas          Oranga – wellbeing.
                                                            We will cascade our EECA outcomes into individuals’       Carbon Neutral Government
» To encourage diversity of thought                                                                                                                           emissions contribute to climate
                                                            Delivery and Development Plans and develop success        Programme (CGNP)                                                               Pakeke – adult or older person.
                                                                                                                                                              change.
» T
   o ensure behaviour matters, acting as an authority      profiles for all our positions, reflecting our EECA       – a Government programme set                                                   Petajoule (PJ) – the unit most
  and adviser                                               behaviours, which will be used for recruitment and        up to accelerate the reduction of       Kaitiakitanga – the concept of         often used to measure energy
                                                            recognition. Recruitment processes will continue to       emissions within the public sector      guardianship. In the context of        production and use on a national
Aligning EECA’s capability and behaviours to our
                                                            be enhanced to ensure we attract a diverse workforce.     to achieve carbon neutrality by         climate change, this means the         scale in New Zealand. Energy
strategy and purpose is key. A focus over the next three
                                                            In addition, we will continue building on the success     2025.                                   intergenerational responsibility       savings are valued using the
years is the improvement of our Māori Crown relations
                                                            of EECA’s graduate programme. Wellbeing, health and                                               to protect and care for the natural    marginal cost of electricity supply.
capability at both organisational and individual level.                                                               Decarbonisation – reducing the
                                                            safety will continue to be a key focus.                                                           environment.
We seek to embed Te Ao Māori into our activities                                                                      amount of CO2 (a greenhouse gas)                                               Process heat – energy used
                                                                                                                      emitted into the atmosphere, with       Kaupapa – a strategy, plan or          for commercial and industrial
                                                                                                                      the ultimate aim of eliminating its     proposal. For EECA, this is the        processes, manufacturing and
Our four core EECA behaviours are:                                                                                    production completely.                  work we will do to accelerate the      heating. For example, meat and
                                                                                                                                                              transition to a low-emissions          dairy processors use steam from
                                                                                                                      Emissions – greenhouse gas

1
                                                                                                                                                              economy.                               boilers to sanitise equipment
                                                                                                                      emissions.
                                                                                                                                                              Low-emissions economy                  and process raw products, such
                                      Open to the new                                                                 Energy – the capacity of a physical
                                                                                                                                                              – an economy that is based on          as turning milk into powder. It
                                                                                                                      system to perform work. Energy
                                      Changing New Zealand needs openness and understanding.                                                                  low-carbon energy sources and          generally involves the use of coal,
                                                                                                                      can be derived from physical or
                                      To succeed, we welcome fresh thinking from others, and create                                                           therefore produces minimal             gas, wood or electricity.
                                                                                                                      chemical resources, such as the
                                      an environment where new perspectives are cherished.                                                                    greenhouse gas (GHG) emissions         Public sector – the public sector
                                                                                                                      sun or fossil fuels. We need energy
                                                                                                                                                              into the atmosphere, specifically      comprises four sectors: public
                                                                                                                      for everything from manufacturing

2
                                                                                                                                                              carbon dioxide.                        service, state services, state
                                                                                                                      and electricity generation right
                                                                                                                      through to powering our vehicles        Low-emissions vehicle (LEV)            sector and the public sector.
                                      Stand in others’ shoes                                                          and homes.                              – LEVs use our renewable               Therefore, it includes both
                                      To mobilise New Zealanders, we need to understand people.                                                               electricity advantage to               central and local government
                                                                                                                      Energy productivity
                                                                                                                                                              significantly reduce greenhouse        organisations.
                                      That means parking our pre-conceptions and getting to know                      – the value we get from the energy
                                                                                                                                                              gas emissions. LEVs include            Renewable energy – energy
                                      them before we act.                                                             we consume, defined as gross
                                                                                                                                                              battery electric vehicles, plug-       produced from hydro, geothermal,
                                                                                                                      domestic profit (GDP) per unit
                                                                                                                                                              in hybrid vehicles and hydrogen

3
                                                                                                                      of energy.                                                                     biomass, wind, solar and marine
                                                                                                                                                              fuel cell vehicles (as long as the     sources.
                                                                                                                      Fossil fuels – includes coal, natural   hydrogen is produced using New
                                      Believe in “we” not “me”                                                        gas, LPG, crude oil and fuels                                                  State sector – within the state
                                                                                                                                                              Zealand’s renewable electricity
                                      Tackling climate change will take collaboration. We need                        derived from crude oil (including       advantage).                            sector lies the state services, and
                                      to work together, in a positive and proactive way to make                       petrol and diesel).                                                            within this lies the core public
                                                                                                                                                              Mandatory Energy Performance           service.
                                      the good stuff happen.                                                          Gigawatt hours (GWh)                    Labelling (MEPL) – EECA
                                                                                                                      – a measurement unit used to            carries out regulation of energy       Sustainable energy – energy that

4
                                                                                                                      describe the amount of energy           efficiency labelling for products      serves the needs of the present
                                                                                                                      produced or consumed over time.         and appliances so consumers            without compromising the ability
                                      Deliver the goods                                                               Gigawatt hours are most often           can compare the energy use of          of future generations to meet
                                                                                                                      used as a measure of electricity,       products and appliances they buy.      their needs. It includes renewable
                                      To be world leaders in clean and clever energy use, we need                     particularly for the electricity                                               energy and energy efficiency.
                                                                                                                                                              Minimum Energy Performance
                                      every individual at EECA to own their part of the challenge.                    production of large power stations                                             Transition – abbreviation for
                                                                                                                                                              Standards (MEPS) – EECA carries
                                                                                                                      or the electricity use of entire                                               the transition to a low-emissions
                                                                                                                                                              out regulation of energy efficiency
                                                                                                                      cities or countries.                                                           economy.
                                                                                                                                                              standards for products and

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