2. Question No. 2—Energy and ResourcesHELEN WHITE (Labour) to the Minister of Energy and ResourcesQuestion No. 2—Energy and Resources2. HELEN WHITE (Labour) to the Minister of Energy and Resources: What action is the Government taking to reduce emissions in the energy sector?Hon Dr MEGAN WOODS (Minister of Energy and Resources): Talofa lava Mr Speaker. On 21 May the Prime Minister announced the Government is partnering with New Zealand Steel to install an electric arc furnace which will remove 800000 tonnes of greenhouse gas emissions each year. This is New Zealand's biggest ever emissions reduction project. This project from the Government Investment in Decarbonising Industry Fund or GIDI is evidence that decarbonisation does not mean de-industrialisation and demonstrates that a low-emissions economy can not only be good for the climate but also can be a win for minimising waste retaining jobs and improving New Zealand's economic resilience.Helen White: How does the marginal abatement cost of this investment compare to the cost of purchasing units overseas?Hon Dr MEGAN WOODS: The Government's investment in this project is excellent value for money with an abatement cost of $16.20 per tonne of carbon. For context this is much less than the current carbon price of $55 per tonne and significantly less than overseas emissions trading schemes are currently paying and the forecast price. This is an effective way for us to invest in New Zealand jobs rather than paying other countries to offset their emissions.Helen White: Why can't we rely on the emissions trading scheme (ETS) alone to drive emissions reductions?Hon Dr MEGAN WOODS: The independent Climate Change Commission has been clear that the ETS alone is not sufficient for New Zealand to meet its climate goals with the ETS needing to be significantly higher than it is today to justify fully funding projects. One industrial user I've spoken to has said that without the complementary measures like GIDI the ETS price would have to be over $200 for these vital decarbonisation projects to stack up for their businesses. This would massively impact the New Zealand economy including driving up the cost of New Zealanders' energy. For example this would add more than 40c per litre to the price of petrol.Helen White: How will this project support jobs at New Zealand Steel's Glenbrook mill?Hon Dr MEGAN WOODS: The Government's partnership with New Zealand Steel will massively reduce emissions while keeping 1300 highly skilled jobs in New Zealand. New Zealand Steel has committed to a reskilling programme for existing workers as part of their transition. The project will also provide significant benefits to the local community as the Glenbrook mill is the largest single-site employer in the Franklin Local Board area employing more than 4000 full-time roles across its New Zealand and Pacific Island operations.Stuart Smith: Oh thank you Mr Speaker. Why is the Government giving $140 million in corporate welfare to a foreign multinational company who had a nearly $3 billion net profit in 2021 and instead why won't this Government stop giving money to wealthy corporates so that everyday Kiwis can get ahead?Hon Dr MEGAN WOODS: While I reject the premise of the question around corporate welfare I would point that member to the point that this is a recycling of the money paid by emitters that New Zealand Steel is what we call one of our climate exposed trading companies and that the money that is being invested in New Zealand Steel is less than three years of the money that they get paid as an offset. I am still waiting to hear from the National Party where they are going to cut 800000 tonnes of carbon a year the equivalent of all the cars in Christchurch. They signed us up to climate agreements—time to show us the plan.