214 (2024). Hon Dr Megan Woods to the Minister of Finance

214 (2024). Hon Dr Megan Woods to the Minister of Finance: what will be the impact on emissions budgets 2 and 3 of her decision to return funding from the Government Investment in Decarbonising Industry Fund (GIDI), return uncommitted funding from the Climate Emergency Response Fund (CERF) and return uncommitted CERF funding from the National Land Transport Fund (NLTF) to fund a climate dividend?

Hon Nicola Willis: There were no specific estimates for emissions reductions associated with uncommitted funding from the Climate Emergency Response Fund (CERF) and National Land Transport Fund (NLTF), so reallocating this funding has no impact on assumptions for emissions budgets 2 and 3. Returning funding from the Government Investment in Decarbonising Industry Fund (the GIDI) is likely to have an impact, but the size of this impact is highly uncertain. At the time decisions were taken, the impact was estimated as additional emissions of around 3.0 Mt CO2-e over the second emissions budget period (2026-2030) and 4.0 Mt CO2-e over the third emissions budget period (2031-2035). The Ministry of Business Innovation and Employment has advised that these estimates may increase in future as the status of some applications is worked through. The Government will consider whether additional actions are needed in order to stay on track to meet emissions budgets as part of the development of the second Emissions Reduction Plan this year.