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Source: ONE News -
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The government is being told its decision to remove mandatory biofuel requirements will increase New Zealand's carbon emissions.
A bill repealing a biofuel obligation on oil companies passed in September is set to be debated through all its stages in parliament next week.
Energy Minister Gerry Brownlee acknowledges the policy wasn't flagged in National's action plan but he says steps had to be taken as requirements on industry are due to come into effect in February.
Bioenergy Association spokesman Brian Cox says the biofuel obligation encouraged producers to manufacture locally produced biofuel in high volume and at the lowest cost.
He says the government's decision has already seen one casualty.
Cox says one major European player has pulled out because it does not believe New Zealand could can provide a long-term market for biofuels.
Cox says the axing of the mandatory biofuel requirements will slow NZ's goal of self sufficiency.
But BP says the government's decision to can the law forcing oil companies to use biofuel will benefit motorists. Spokeswoman Diana Stretch says the company supports the use of biofuel, but only when it makes economic and environmental sense.
She says now BP doesn't have to spend money on infrastructure and importing biofuel, and that cost won't be passed on to motorists.
Stretch says BP is looking forward to seeing what happens with the next generation of biofuels.
