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Tackling the Mammoth Feat – NZEECS
The latest Energy Efficiency and Conservation Strategy (NZEECS) draft from the Ministry of Business, Innovation and Employment titled “Unlocking our energy productivity and renewable potential” seeks to provide some way forward in tackling the climate change issues ahead of us. With New Zealand recently ratifying the Paris Agreement (well last year) we now, as a country, must come to terms with what that actually means for us. The overarching goal may seem many years off with more than enough time to somehow tackle the mammoth feat of reducing carbon levels to 30% below 2005 levels. However a check point for this task is coming up fast. Five percent below 1990 Greenhouse emissions levels by 2020 is the ‘unconditional” criteria for success. While a portion of this reduction will be dealt with the purchase of carbon credits meaningful change is also necessary to reach these targets.
The NZEECS suggests three main focuses for the next five years through to 2022:
Renewable and efficient use of process heat
Efficient and low emissions transport
Innovative and efficient use of electricity
In fact most of the points are previously covered in the New Zealand Energy Strategy but what caught my eye was the focus on process heat. Process heat is used for numerous purposes and is used considerably in most industries. This steam comes from boilers commonly fuelled by non-renewable resources e.g. coal and hence has large amount of carbon emissions associated with it. This process heat focus is being quantified as decreasing industrial emission intensity by 1% per annum over the next five years (note this excludes the chemical, metal and electricity industries).
So what does this mean for you? Well firstly with the phase out of the ‘one for two’ policy by 2019 the costs associated with the ETS will rise and these costs will be passed on to the consumer through coal prices etc. This, combined with EECA making process heat a priority (which may mean more available funding), now is a great time to make some improvements and take a closer look at how you are using process heat on your site.
For most businesses, energy accounts for a substantial portion of running costs. The average cost of electricity for businesses depends on the size of the business and how it uses the energy. Historically, the larger the business, the more energy it uses with proportional operating costs. However, with the rise of energy efficiency services , the status quo is being challenged. Energy efficiency: a pathway to competitive excellence The globally shared vision of sustainability is underpinned by energy efficiency, and its role cannot be overstated. It serves as a cornerstone in steering industries and businesses towards a more environmentally conscious and resilient future. Aside from the attractiveness of green kudos, businesses embracing energy efficiency initiatives gain an unparalleled competitive advantage. Optimised processes: data from routinely scheduled energy audits identify process energy drains but also reveal the opportunities to make the business more energy efficient through optimised processes . Reduced operating costs and energy consumption: adopting energy-efficient technologies and practices enables companies to significantly slash energy bills and mitigate the environmental footprint of operating. Financial savings: decreasing energy usage and the associated costs fuel savings which typically outweigh the initial investment. ( Case study: Fonterra Brands ). Improved productivity: with more efficiently run operations and production processes, output increases and downtime decreases. Through streamlined energy efficient operations and lower energy bills, emerges an improved cashflow. Savings become available for reinvestment in other areas of business. From growth initiatives, advanced research and development, and improving employee benefits to attract the best of industry talent, the positive benefits of energy efficiency are profound. Business energy costs are volatile, which means rates can vary significantly throughout the tax year making them particularly complex to forecast in budgeting terms. Integrating sustainability practices into a business, creates a resilience to energy cost changes – your business is given a level of protection against soaring energy, the value of which depends on the steps towards energy efficiency you have taken.
DETA is excited to announce a strategic partnership with ESG Strategy, a renowned sustainability consultancy, aimed at advancing sustainability initiatives throughout New Zealand, Australia, and the Pacific region. This collaboration brings together DETA's expertise in energy management and efficiency with ESG Strategy's proficiency in developing robust sustainability and ESG strategies. Both organisations share a commitment to driving positive environmental and social impacts. They have a history of successfully delivering sustainability strategies and technical decarbonization pathways, showcasing their synergy and dedication to sustainability solutions. About DETA DETA specialises in helping businesses across various sectors , including food and beverage, agriculture, healthcare, hospitality, education, and biotechnology, to manage energy consumption, reduce carbon footprints, and implement energy improvement projects. Their efforts have led to significant annual savings for clients, demonstrating the financial benefits of energy efficiency and sustainability practices. About ESG Strategy ESG Strategy is a trusted advisor to boards and senior executives, focusing on meaningful sustainability and ESG strategies. They have crafted sustainability strategies for some of the largest companies in Australia and New Zealand and have provided pro bono strategic advice to The Kingdom of Tonga on sustainability, circular economy, and climate change.
Explore the truth behind sustainability claims in business. Navigate the Green Wash vs. Green Hush dilemma with DETA Global Learn more transparent practices.
