Why Cutting EECA Funding Harms New Zealand’s Future
The energy savings agency that helps Kiwis and businesses is being gutted. Here’s what it means -
What an act of deliberate sabotage. The Government is gutting the very agency tasked with helping New Zealanders save energy, reduce emissions and lower their household and business costs. With climate commitments looming and international credibility at risk, $80 million is being ripped from the Energy Efficiency and Conservation Authority (EECA), an agency the Energy Minister himself claims is doing excellent work. Instead of supporting energy savings, insulation, cleaner industry and lower power bills, this Government prefers to funnel $200 million into offshore gas fields and fantasise about LNG imports.
The absurdity deepens. New Zealand Steel’s emissions reductions alone would have cut 1 percent of the country’s total emissions, a cost-effective and proven strategy now scrapped. Warmer Kiwi Homes, which helps Kiwis heat their homes, is also being axed mid-flight. Industry will now be left to flounder without support to decarbonise, all in the name of ‘discipline’ and ‘efficiency.’ Meanwhile, power prices will rise, households will stay cold and our emissions trajectory will worsen. The ideological zeal of a Government prioritising fossil fuel expansion over energy efficiency is both reckless and shortsighted.
Alternative Vision
Imagine if the opposite had occurred. The Government, recognising both the climate and economic value of energy efficiency, decided instead to expand EECA’s role and funding. Rather than slashing budgets, they could have doubled down, driving nationwide home insulation upgrades, electrifying more industries and rolling out solar and battery systems across communities.
Industry support would have helped New Zealand businesses modernise, reducing their reliance on costly gas and cutting emissions. The Warmer Kiwi Homes programme could have been extended to every low-income household, slashing power bills and improving health outcomes. The NZ Steel project would have been followed by a wave of industrial decarbonisation, making New Zealand a leader in clean manufacturing.
A well-funded EECA could have spearheaded a massive public education campaign to help Kiwis switch from petrol and gas to clean electricity, encouraging rooftop solar and community energy projects. Not only would this have accelerated progress toward our Paris targets, but it would also have stimulated local job creation and innovation. New Zealand could have been admired globally as a nimble, efficient, green nation. Instead, that opportunity has been squandered.
Letters to the Editor - NZ Herald
Letter 1 - Reality of the Government’s decision
Dear Editor
As a small business owner in the food processing industry, I relied heavily on the advice and support of EECA to decarbonise my operations. With their guidance, we were planning a major conversion to electric heating that would have cut both our emissions and our energy costs. Now, that project is on hold, our funding withdrawn, and I am left scrambling for alternatives. The message from this Government is clear – it does not care about helping businesses reduce emissions or cut energy costs. I fear this short-sighted approach will leave New Zealand trailing behind, both economically and environmentally.
Yours sincerely
Paul Brennan
Hamilton
Letter 2 - Alternative outcome vision
Dear Editor
I was thrilled to hear about the Government’s bold decision to supercharge EECA’s role in helping New Zealand transition to a low-carbon economy. Thanks to expanded support, our food processing business was able to fully electrify our operations this year, slashing emissions and saving thousands in energy costs. The Warmer Kiwi Homes programme has also meant that many of our staff can now heat their homes affordably, improving wellbeing. This is the kind of forward-looking leadership we need. Investing in energy efficiency pays off for everyone – households, businesses and the climate.
Yours sincerely
Paul Brennan
Hamilton