NZ Government Loans Help Businesses Ditch Gas

New Zealand's government has launched a loan scheme to help businesses transition away from natural gas. The Gas Transition Loan Guarantee Scheme offers participating banks a guarantee of 80% of the default risk on eligible loans, allowing them to provide more competitive lending terms and lower interest rates.

The initiative is designed to support investments in cleaner energy technologies and improved energy efficiency, which can help businesses reduce their reliance on gas and adapt to changing energy markets. The government expects the programme to unlock up to NZ$1.2 billion in lending, helping businesses replace or reduce gas use while strengthening their ability to cope with rising gas prices.

The scheme is particularly important for regional industries that depend heavily on gas, including food processing, wood processing, manufacturing, and horticulture. These sectors play a major role in supporting local jobs, communities, and export earnings, making it essential that businesses have practical options to manage higher energy costs.