The Government has outlined plans to support storing carbon dioxide in naturally occurring geological formations as part of its strategy to help achieve New Zealand’s climate change goals.
This follows earlier decisions by the Government to proceed with a carbon storage regime.
Carbon storage involves injecting carbon dioxide into naturally occurring geological formations deep underground. These formations can include deep saline aquifers, depleted oil and gas reservoirs, coal seams that can’t be mined and basalt formations. They can be on land or offshore.
Businesses that carry out carbon storage, in line with regulations and guardrails, would be rewarded for a reduction or removal of carbon dioxide through the New Zealand Emissions Trading Scheme (NZ ETS).
The approach draws from international best practice and feedback from public consultation held in July and August 2024. Carbon storage is already operating overseas and can support economic growth, energy security and address climate change.
A summary document outlines key aspects of carbon storage regulation including:
These measures are aimed at ensuring safe and effective long-term storage of carbon dioxide. Operators would need to demonstrate site suitability and commit to ongoing monitoring.
Next steps are to develop legislation to allow carbon storage projects.
If you have any questions on how the carbon storage regime would work, please email info@mfe.govt.nz.