just another positive for the industry

NZ Sets Minimum Biofuel Target In Gasoline, Diesel Sales

WELLINGTON (Dow Jones)--The New Zealand government said Tuesday that it will introduce
a compulsory program requiring oil firms to sell a certain proportion of cleaner biofuels
as part of a broad-ranging plan to reduce greenhouse gas emissions.
Associate Minister of Transport Judith Tizard said that from April 1, 2008, the
government will require a 3.4% biofuel content in gasoline or diesel sold by oil firms by
2012.
"The obligation will be reached by the sale of varying mixes of biofuel petrol and
diesel," Tizard said.
Climate Change Minister David Parker said the requirement would reduce greenhouse gas
emissions by more than 1 million metric tons between 2008 and 2012.
"It will also decrease New Zealand's dependence on imported oil and improve
energy security," he said.
The biofuels that are likely to be sold in New Zealand are biodiesel, made from
vegetable oil and animal fats, and bioethanol which is produced from fermented sugars and
starches.
Prime Minister Helen Clark, who announced these measures to begin the 2007
Parliamentary year, said the government wanted to lead by example.
She said six government departments have committed to reach carbon neutrality by 2012
by reducing emissions and planting trees.
The ministerial car fleet will be replaced over the coming years with less polluting
and more fuel-efficient vehicles. "Traditional patterns of development and
fast-growing populations have put an intolerable strain on the planet. The future
economic costs of doing nothing are dire," she said.
New Zealand is a signatory to the Kyoto Protocol On Climate Change, which the
government ratified in 2002. New Zealand is to ensure that by Dec. 31, 2012, its net
greenhouse gas emissions are no higher than they were in 1990.
Clark said New Zealand's challenges were greater than any other country because of
its distance from markets, but added that it could benefit by its commitment to renewable
energy to protect the environment.
She said the government would also have a procurement policy that will favor purchases
from firms that provide sustainably produced goods and services.