The Government has confirmed it will ban new coal-fired boilers and is proposing to phase out coal boilers altogether by 2037.
Energy Minister Megan Woods said it would "make a real difference to New Zealand’s emissions profile". The ban would be "a significant boost to our clean energy sector, helping us on our path to a cleaner, smarter economy", she added.
Woods said the Government is also considering how to phase out other fossil fuels.
"The amount of coal displaced by these proposals equates to about 500,000 tonnes each year," Woods said.
"Once the changes are fully in place it will mean the equivalent of between 400,000 to 550,000 cars being removed from our roads in a single year."
The Decarbonising Industry Fund is set to give 14 companies $23 million to assist with moving away from fossil fuel use.
"The 14 projects we’re announcing funding for today will achieve up to 10 per cent of the gross long-lived emission reductions required from the Climate Commission’s first draft carbon budget for the period 2022-2025 — the same as taking 49,000 cars off the road."