The New Zealand Energy Certificate System (NZECS), managed by Certified Energy, has committed to develop and provide a system for renewable gas certificates in New Zealand, to help achieve New Zealand’s net zero carbon goals.
We have launched a consultation to shape the initial system rules, to be released in mid-2021. We invite anyone with an interest in the New Zealand gas industry, whether as a provider or user, to contribute their views. Subscribe to the consultation process by filling in this form.
Why do we need a renewable gas certification system?
To achieve our national decarbonisation goals, New Zealand will need to focus on a number of key emissions areas. For energy, this means process heat and transport.
Renewable gas (primarily bio-methane and ‘green’ hydrogen) is gaining popularity around the world as a low-emissions alternative to natural gas and transport fuel. In New Zealand, renewable gases may be able help many large energy users on their decarbonisation journeys, particularly where electrification is not currently feasible.
Renewable gas certification can encourage new renewable gas production in New Zealand, by connecting gas users and producers - providing additional revenue to producers and enabling users to gain the full benefits of renewable gas use.
More broadly, energy certification can help energy users speak clearly and credibly about the environmental impacts of their purchasing decisions, raising the profile of renewable gas as an important part of our decarbonisation journey.
Our role
As New Zealand’s energy certification system provider, we want to support the transition to a low-carbon energy system.
We operate the national system for electricity certification, providing additional value to generators and developers of renewable electricity. We support renewable energy certificates (RECs) as an emissions mitigation tool and the developing REC market in New Zealand.
We are engaged with REC markets and systems internationally, so the NZECS reflects industry best-practice.
Consultation steps
The launch of the initial system rules will provide clear principles for renewable gas certification, so that those considering using or selling certificates can plan ahead. As the renewable gas market is still developing in New Zealand, the system will be able to expand to support the applications that may be needed for our producers to succeed.
We will release a discussion paper by the end of April and hold a series of workshops for anyone interested in the consultation.
Potential discussion topics include:
supported gas products – inclusion of low-carbon gas within certification standard;
accuracy and transparency – ensuring the GHG emissions from producing gas is properly measured;
transacting certificates – ensuring that the integrity of certificates is maintained;
vintage – appropriate certification time-period ( e.g. the “gas year”; or something else),
calculation of the residual supply mix – determining the characteristics of remaining uncertified gas,
inter-operability – requirement / need for certification to harmonise internationally.
Your feedback will help us develop these topics further.
Following this consultation, and incorporating energy certification principles, international precedent, and initial feedback from stakeholders, we will release a set of draft rules for comment. We will use these comments to finalise the initial system rules. At the same time, we will share the process we will use to further develop these rules in conjunction with industry.
Timeline
We will complete consultation and launch the renewable gas certification system under the initial rules over the next three months.
30 April: Publish discussion paper
3-14 May: Webinars / workshops on topics
23 May: Consultation on discussion topics ends
5 July: Publication of draft rules
18 July: Consultation on draft rules end
2 August: Initial rules taken into force
Questions?
Please contact Tim Middlehurst, Chief Executive, New Zealand Energy Certificate System
+64 21 818 993