Sustainable Biofuel Obligation Bill

Last updated: January 11, 2023

Energy

Sustainable Biofuel Obligation Bill

Published: January 11, 2023

Submitting To: Environment Select Committee

Issue for Business: The Sustainable Biofuel Obligation proposed that fuel suppliers had to reduce their emissions by at least 1.2% in 2023, and increase their reductions out to 2030, by using blended biofuels. In BEC's original submission in July 2022, BEC outlined that the obligation's start date April 1 2023, provided insufficient time for suppliers to build the necessary infrastructure and inform consumers on the safety of biofuels. We recommended at least a two year delay, or a reduced target in the initial years.

Outcome: Following BEC's July 2022 submission, the Government extended the timeline for the biofuels implementation by one year. The new starting date will be April 1 2024. However, the reductions target for year one would increase from 1.2% to 2.4%. This places significant strain on the industry to source limited global supply. The proposal has been introduced in parliament. BEC's submission reiterates the tradeoff between implementing this obligation and price. Among many other factors mentioned in this submission, BEC states the lack of clarity given about the exact sustainable nature of international supply. Land use change and feedstock uncertainty must be addressed.

0 Comments

Submit a Comment

Reports in Energy

Fuel Industry Amendment Bill

Submitting to: The Economic Development, Science and Innovation Select CommitteeAuthor: Levi GibbsDate: 2023-01-23Category: EnergyIssue for Business: The Bill is amended in two consequential ways. First, it gives the Commerce Commission the power to investigate competition ...

Promoting competition in the wholesale electricity market in the transition toward 100% renewable electricity

Submitting to: Electricity AuthorityAuthor: Levi GibbsDate: 2022-12-14Category: EnergyIssue for Business: The Electricity Authority (EA) decided to investigate competition in New Zealand's wholesale electricity market after sustained high prices since 2018. The EA launched ...

Inefficient Price Discrimination in very large contracts

Submitting to: Electricity AuthorityAuthor: Levi GibbsDate: 2022-10-31Category: EnergyIssue for Business: In August 2021, the Electricity Authority (EA), in conjunction with their review into the wholesale market, released a paper on the possibility of Inefficient Price ...