538 (2024). Hon Dr Megan Woods to the Minister of Finance

538 (2024). Hon Dr Megan Woods to the Minister of Finance: Further to 215 what are the emission reduction impacts considered by Cabinet as part of the Mini Budget process?

Hon Nicola Willis: Officials provided Cabinet with an assessment of how Mini Budget decisions could impact our ability to meet emissions budgets. The decisions that officials indicated could have implications for achieving our emissions budgets were: • Returning funding from the Government Investment in Decarbonising Industry Fund; and • Discontinuing the Clean Car Discount. At the time Mini Budget decisions were taken, the impact of returning funding from GIDI was estimated as additional emissions of around: • 0.1 Mt CO2-e over the first emissions budget period (2020-2025); • 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. At the time of Mini Budget decisions, the impact of returning funding from the Clean Car Discount was estimated as additional emissions of: • Less than 0.1 Mt CO2-e over the first emissions budget period (2020-2025); • Less than 0.6 Mt CO2-e over the second emissions budget period (2026-2030); and • Between 0.3-0.6 Mt CO2-e over the third emissions budget period (2031-2035). Ministers were advised that the emissions impacts of ceasing this funding were uncertain. Officials advised Cabinet that these decisions did not pose a significant risk to achieving the first emissions budget, and that impacts on the second and third emissions budgets are more uncertain. 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.