The New Zealand government has made decisions on the key elements of a CCUS framework designed to enable carbon capture and storage. Legislation is expected to be introduced this year.

This is according to a news release published by the government on 21 February 2025 quoting the Hon. Simon Watts, Minister for Climate Change and Energy.

“Under our CCUS framework, businesses that capture and store CO₂ will be rewarded through the Emissions Trading Scheme (ETS), our Government’s key tool to reducing net emissions. This will help reduce emissions obligations for New Zealand businesses as we progress towards a low-emissions economy,” Mr Watts says.

He also says the decisions around CCUS “…..(align) New Zealand with other countries that are successfully utilising CCUS to drive economic growth and attract investment”….and will provide “a pathway for businesses to remain competitive while reducing net emissions.”

The new framework will require any CCUS project to undertake a thorough assessment of storage site suitability and proposed operations, followed by ongoing monitoring.

Read the full statement here.