The New Zealand Ministry of Business, Innovation and Employment has outlined Budget 2026 measures to help gas-using businesses reduce natural gas consumption, centred on a Gas Transition Loan Guarantee Scheme that will support up to NZD 1.2 billion of bank lending. Under the scheme, the Crown will guarantee 80 percent of each supported loan, with banks expected to pass on lower interest rates, to make fuel switching and efficiency investments more affordable and free up gas supply for other users. Eligibility will be limited to businesses operating in New Zealand that use at least 1,000 gigajoules of gas a year. The scheme will cover investments in energy efficiency, fuel switching and other technologies that reduce piped natural gas use, provided projects cut consumption by at least 15 percent through genuine efficiency gains or fuel switching rather than reduced production. Borrowing will be capped at NZD 50 million per firm, and the scheme is expected to open in July or August 2026 for three years. Budget 2026 also allocates NZD 5.9 million to the Energy Efficiency and Conservation Authority to provide tailored advice and help build a pipeline of investment-ready projects. Separately, the government announced its intention to pass the Gas Transparency Bill, which would add a regulation-making power to the Gas Act requiring industry participants to disclose critical gas market information to regulators and, in some cases, other market participants. Consultation on the detailed information requirements is to follow.

Original source Back to tracker