Government moves forward on coal technology restrictions

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A ban on installing new coal heating devices is set to take effect.
Photo: Cultura/Monty Rakusen

The government is following through on a promised ban on new coal boilers, and phasing out existing ones by 2037.

Other changes announced yesterday include new standards requiring councils to factor in climate change in decisions about consents for furnaces that burn fossil fuels.

Currently more than half of the heat used to process raw material – for example in dairy and paper production – comes from burning fossil fuels.

It accounts for 8 percent of New Zealand’s greenhouse gas emissions.

Energy and Resources Minister Dr Megan Woods said the changes would reduce emissions equivalent to the exhaust fumes from 100,000 cars a year.

“Switching to cleaner ways of generating process heat presents a huge opportunity to reduce our domestic greenhouse gases and paves the way for greener export products too.

“It continues the government’s momentum in reducing emissions and decarbonising industry, and delivers on a key Labour Party manifesto commitment.”

The ban on installing new coal heating devices kicks in from late next month, with the new nationally consistent standards for councils ready for implementation before the end of the year.

Further details on the new standards and national direction

The Energy Efficiency and Conservation Authority is producing guidance to help councils and industrial emitters of greenhouse gases understand and implement the new standards – also called the ‘national direction’.

Officially, it is called the National Policy Statement and National Environmental Standards for Greenhouse Gas Emissions on Industrial Process Heat.

It only applies to fossil-fuel burning devices (such as coal boilers) that are used to generate thermal energy for industrial processes.

The national direction:

Introduces consenting requirements to reduce emissions from the use of fossil fuels in industrial process heat devices, including for boilers, furnaces, engines, or other combustion devices
Applies to fossil fuels including coal, coke, diesel, liquid petroleum gas, natural gas, used tyres, oil, peat or plastics
Incentivises lower-emission alternatives for new process heat devices
Requires consent applications for heat devices to have greenhouse gas emissions reductions plans
Requires greenhouse gas emissions plans to be reviewed by qualified assessors for sites emitting above 2000 tonnes CO2-e per year

The national direction does NOT cover:  

Emissions from non-fossil fuels
Electricity generation 
Heat devices used for commercial space and water heating.
Back up devices used for planned maintenance or in emergencies for 400 hours or less per year are exempt from the regulations.