Projects to Reduce Emissions (Project Mechanism)

Projects to reduce carbon emissions are part of New Zealands confirmed policy package on climate change. Projects are activities undertaken by businesses, other groups or individuals that deliver measurable reductions of greenhouse gas emissions. In return, the government awards them an incentive of emission units, or "carbon credits". Projects must result in a measurable reduction in greenhouse gases and not be merely business-as-usual. While the process is open to all forms of renewable energy supply, it is anticipated that process heat and electricity projects will be the most favourably positioned renewable energy sources to benefit from this funding. Nine projects were allocated a total of 4 million tonnes of carbon dioxide credits in the first round in 2003. As part of the governments review of climate change policies, this mechanism, which has successfully supported several renewable energy projects, may or may not continue for a third round.

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