NZ Government transitions back to fossil fuels for heat
Marc Daalder, newsroom
21 September 2026
A scheme designed to help businesses get off gas will subsidise them to use coal, diesel or LPG instead – if they wish.
After months of work on a plan to underwrite bank loans to help businesses get off natural gas, ministers removed a requirement from the programme that borrowers turn to clean energy sources just five days before it was announced. Applicants for the Gas Transition Loan scheme may access funding to convert to burning LPG, diesel or coal. The scheme no longer requires transition to a renewable fuel such as biomass.
[Ed – Bioenergy Association has joined with other parties to advocate against this Government policy]