Biofuels could play a vital role for New Zealand; they have the ability to offer a renewable fuel source and net emissions reductions to the transport sector. Correct implementation is essential to sustainably attain these benefits. A number of concerns had been raised with regards to the encouraged uptake of biofuels – biofuels may compete with food supply resulting in instability of food prices and have indirect effects on net emissions resulting from land use and land use change.
Consensus is thought to have been reached on sustainability principles for biofuel production in New Zealand, Jeanette Fitzsimon’s Sustainable Biofuel Bill received cross party support at the first reading in Parliament and is currently before the Select Committee. The Sustainable Biofuel Bill sets in place three principles to ensure biofuels are produced with tangible and observable benefits, while minimising possible social and environmental harms.
The international public policy approach towards biofuels involves subsidy schemes coupled with national mandated targets. New Zealand is out of step with the international approach because there is currently no mandated target, although subsidy and waiver schemes are in place. New Zealand was slow with the implementation of subsidy and waiver incentives, resulting in delaying growth within the industry.
The public policy in New Zealand towards biofuels has been uncertain over the past three years, caused mainly by the change in government. Policy uncertainty is further concern because it creates a lack of confidence within the industry and can discourage large investment. The absolute result is that New Zealand is falling behind in the uptake of biofuels in comparison with other countries. New Zealand needs to have a solid policy direction for biofuels in order to enhance growth within the industry.
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