Budget's most expensive green policies may save more cash than carbon
The two biggest climate policies announced in the Budget may only have a minor impact on emissions. Stuffs Olivia Wannan reports. Cheaper public transport and warmer, drier homes received more than $700 million of climate funds in the Budget. Although the policies could alleviate pressure on cash-strapped families, they may have a smaller effect on emissions, the Government admits. While the investments are a step in the right direction, climate campaigners said, the overall Budget was deeply concerning and a missed opportunity. Housing was the biggest climate winner in the bread and butter Budget , with more than $400 million allocated to the Warmer Kiwi Homes programme over the next four years. Thats nearly double the current fund, Prime Minister Chris Hipkins said. The spending, which will retrofit 100,000 draughty homes with insulation and heat pumps to shrink energy bills, could also give the coal-burning Huntly power station a rest. Public transport received nearly $330m. Under-13s will be able to ride buses, trains and ferries without payment. Half-priced fares across the board will end in July, though will remain in place for young people to age 25, Community Service Card-holders and people with disabilities. But Climate Change Minister James Shaw said the two policies would have a smaller impact on emissions. The $700m came from the Climate Emergency Response Fund, which ring-fences the carbon penalties paid by many large polluters, such as petrol companies and fossil-fuelled power stations. Shaw said the $120m for EV chargers and $300m for the Governments green bank would have a bigger impact on pollution. The bank, known as NZ Green Investment Finance, invests in companies and loans cash for projects that should most effectively bring down the national footprint, he said. You get climate action, and your money back. However, environmental activists said the Budget announcements were inadequate. Forest & Birds Nicola Toki was deeply concerned that the Government still did not understand the scale of investment needed to address the climate crisis. Nick Henry, of Oxfam Aotearoa, described the Budget as a missed opportunity: After the year Aotearoa has had, Oxfam is shocked to see the Government still isnt taking the climate crisis seriously. 350 Aotearoa chief executive Alva Feldmeier said half a million Kiwi homes were under-insulated, so the Warmer Kiwi Homes funding would still leave 400,000 cold and damp. The programme only covers homeowners, and therefore doesnt improve household power bills for those that are renting. Andrew Eagles the chief executive of the Green Building Council estimated $1 billion a year was needed to get homes fit to meet climate goals. Shaw agreed to a point, describing it as a good Budget though bolder action is required. University of Canterbury climate researcher Bronwyn Hayward thought fare-free public transport for children is a transformative step. All up, the climate policies announced in the Budget would save 4.3 million tonnes of emissions out to 2030, according to Shaws office. When Hipkins scrapped the biofuels mandate and other green proposals at the start of the year, he pledged to to find emissions savings of at least 1 million out to 2025 the date of the Governments first climate target. Stuff asked how much greenhouse gas would be saved by Budget announcements between now and 2025, but ministers offices did not respond prior to publication. The Government is legally obliged to meet these targets, Shaw said. The first emissions budget is going to be a close-run thing, but Im feeling more optimistic about the second. The wider Budget made investments in climate resilience. The Government will spend nearly $360m in transport funding over four years to boost the ability of state highways and local roads to withstand increasingly extreme weather. Rail received more than half a billion, with $200m dedicated to rebuilding lines damaged by extreme weather. The Government will also investigate electrifying more of the North Island network. Our weekly email newsletter, by the Forever Project's Olivia Wannan, rounds up the latest climate events. Sign up here .