Parliament approves New Zealands biofuel bill

New Zealand Energy Minister David Parker welcomed the passing in Parliament of the Biofuel Bill, which he said would stimulate the market for sustainable alternative transport fuels. “I’d like to thank the Progressive Party, Greens, New Zealand First, the Maori Party, United Future and Taito Phillip Field for supporting this legislation,” Parker said. “This legislation allows for an increasing proportion of New Zealand’s transport fuel to be produced locally, from by-products of the dairy or beef industry, and in the future from wood and grasses grown on marginal land, or from algae from sewage ponds. The introduction of biofuels will start to free New Zealand from the tyranny of the international oil market, and may even reduce the cost of fuel to consumers, he said. The legislation introduces a biofuels sales obligation, which means that biofuels will have to make up 0.5% of oil companies’ sales this year, with obligation levels rising by 0.5% increments to 2.5% in 2012. The bill contains sustainability principles which will make sure biofuels sold towards the obligation will: emit significantly less greenhouse gas over their life cycle than fossil fuels; avoid negative impacts on food production; and do not adversely affect land with high conservation values. (September 4, 2008)