Wrap of May's Government Funding Announcements: Innovation fund, Budget 2022 and Emissions Reduction Plan
It has been a big month for government funding and budget announcements that will be of interest to ITSNZ members and the sector.
• On May 9th the Waka Kotahi Innovation fund Hoe ki angitū was announced
• Transport has received $1.2 billion of the total $2.9 billion unveiled in this week’s Emissions Reduction Plan announcement from the Climate Emergency Response Fund.
• In the 2022 Budget contained numerous specific allocations to transport totalling over 1 Billion New Zealand dollars
• Technology industry funding increases may also benefit the ITS and transport technology sector
ITSNZ Director – Membership, Armin Guttke states “Overall it is great to see this level of investment in the transport sector. However there remains a lack of certainty for two major ITS systems congestion charging and integrated ticketing, which are considered vital for emissions reduction.
“It is also great to see $20m allocated to the Digital Technologies Industry Transformation Plan, with actions supporting further technology innovation and investment within our country.”
Key Emission Reduction Programme (ERP) announcements:
- $569m to pilot and roll out a vehicle scrappage scheme
- Over $400m to fund transport services and infrastructure investments that reduce reliance on cars and support active and shared/public modes of transport
- Approx. $100m into supporting the improvement of the public transport bus and driver fleet
- $20m to accelerate the de-carbonisation of freight transport
- $16m to develop an equitable transitions strategy (including transport)
In return the sector is expected to reduce emissions by 10-12% by the end of the current emissions budget period (by 2026). It is anticipated this will be achieved through four key targets underpinned by a set of actions:
Reduce total kilometres travelled by the light fleet by 20 per cent by 2035 through improved urban form and providing better travel options, particularly in our largest cities.
- Increase zero-emissions vehicles to 30 per cent of the light fleet by 2035.
- Reduce emissions from freight transport by 35 per cent by 2035.
- Reduce the emissions intensity of transport fuel by 10 per cent by 2035.
The actions required to meet the target emissions reduction will require industry, academia and government to move in the right direction together, to ensure investments and policy actions maximise economic and social benefits and avoid displacement.