New Zealand Bans New Coal Boilers, Phases Out Existing Ones by 2037

The government's decisions will reduce emissions by about the same amount as 100,000 cars would produce in a year, Woods said.

"Currently, more than half of the heat used to process raw materials into products such as paper and dairy production comes from fossil fuels," she said.

Switching to cleaner ways of generating process heat presents a huge opportunity to reduce domestic greenhouse gases and paves the way for greener export products too, the minister said.

The new policy follows the government's recent announcement of New Zealand's biggest-ever emissions reduction project, in partnership with New Zealand Steel Limited, to introduce an electric arc furnace and reduce carbon emissions by 800,000 tonnes per year - the equivalent of 300,000 cars to produce in a year, she said.

The National Policy Statement and National Environmental Standards for greenhouse gas emissions from industrial process heat gives local councils the muscle to tackle emissions produced by industrial process heat, accelerating New Zealand's transition to a low-emission, thriving, and sustainable economy, she added.

Industrial process heat currently produces about 8 percent of New Zealand's greenhouse gas emissions, Woods said.

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