Outcome 4: Strong and resilient economy and value derived from natural resources

A strong and resilient economy is essential to the country’s long-term success and to helping weather global and national changes and natural disasters. Energy security and renewable energy sources provide better economic stability and ensure autonomy.

MBIE works to ensure Aotearoa New Zealand’s natural resources are used in a way that makes sure they will continue to benefit New Zealanders for generations to come. We support businesses and regions to mitigate the impact of climate change and respond in times of emergency.

This year we supported the Government to explore an increase in the scale and pace of energy and resource development, to ensure secure, resilient and reliable production and supply.

Energy security

International events continue to highlight the volatility of supply and cost within international energy markets, along with the importance of increasing domestic options. MBIE has undertaken several energy-related consultations and work programmes over the year designed to improve energy security and resilience, including:

• establishing the Gas Security Response Group to coordinate gas producers, major gas users and government to respond to the declining gas supply
• consulting on the establishment of an offshore renewable energy regime for offshore generation, with legislation expected to be introduced in 2024/25
• consulting on the development of a roadmap for hydrogen that sets out opportunities for hydrogen in New Zealand’s energy transition, including actions the Government is undertaking to establish a sustainable and safe hydrogen industry here
• consulting on electricity market measures that support affordable, reliable and resilient electricity supply.

MBIE continues to support small-scale community energy initiatives through the Community Renewable Energy and Māori and Public Housing Renewable Energy funds. Initiatives include:

• 40 solar energy systems on community buildings to support emergency response in regions affected by Cyclone Gabrielle and other severe weather events
• small-scale clean energy projects across the country, including 42 small-scale clean energy projects for around 435 Māori households that generate 1,925 kilowatts of electricity and provide 1,121 kilowatts of storage.

Resources

MBIE has drafted a minerals strategy for Aotearoa New Zealand to 2040, with consultation closing on 31 July 2024. It proposes:

• producing a critical minerals list for New Zealand
• a detailed stocktake of the country’s known mineral potential.

The minerals sector was worth $1.03 billion in mineral exports in 2022, providing more than 5,000 direct jobs and supporting local businesses. The new strategy is a critical part of the Government’s export-led focus and proposes to double the value of mineral exports to $2 billion by 2035.

We have been improving the minerals permitting processes and responding to feedback to improve our systems. These changes are already having a positive effect. As at 30 June, 241 applications were in the minerals queue, down from the peak of 305 in mid- July 2022. In recent months, we have been working to progress and resolve our longest-held applications. From February to June 2024, the queue of historical applications reduced from 162 to 32.

We have also been supporting the Government in progressing changes to resource management laws and establishing a new fast-track consenting regime. The new regime aims to improve the speed and process for resource approvals for major infrastructure projects, including in industries such as aquaculture and mining in the regions.

Helping New Zealanders after severe weather events

Due to its geography and location, New Zealand is prone to natural hazards. As the climate changes, we can expect damaging environmental events to increase in frequency and severity. The severe weather events in 2023 caused widespread flooding and damage to land and buildings across the North Island and isolated several communities from the rest of the country.

A significant focus after the North Island weather events (NIWE) in 2023 was on finding accommodation for people whose homes were affected. MBIE activated TAS, supporting people across 7 regions in the North Island. TAS supports affected households to find temporary accommodation while their homes are being repaired, rebuilt or if they are unable to return

to their homes. As at 30 June 2024, 1,209 households had received temporary accommodation for the NIWE response, of which 123 were still in temporary accommodation.

This year, MBIE released new natural hazards guidance that will:

• support homeowners with damaged homes from severe weather events
• help councils and homeowners understand the natural hazard provisions in the Building Act 2004 and apply them to new homes being built on land that may be subject to natural hazards.
• MBIE also released guidance on discretionary exemptions for flood damaged buildings to help with the remedial work after extreme flooding events such as repairing and replacing flood- damaged plasterboard.

MBIE continued to support households affected by the NIWE through the New Zealand Claims Resolution Service (NZCRS), by providing independent advice and support to resolve residential insurance issues. As at 30 June 2024, 1,290 cases were registered, 988 resolved and 302 in progress related to NIWE. Since the establishment of NZCRS, we have registered 6,365 cases and closed 5,453 cases across 16 regions. Of these, 912 are still progressing across 12 regions.

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