New Zealand's oil consumption soars to five-year high despite renewable gains
New Zealand's oil use has hit a five-year high, marking the largest quarterly share of energy emissions on record. The surge comes as transport remains the country's biggest source of fossil fuel pollution. Meanwhile, electricity generation has reached its lowest emissions level yet, with over 90% of power now coming from renewables. Oil has long dominated New Zealand's energy emissions, accounting for 77% of fossil fuel pollution in the latest quarter. Since 1990, liquid fuels—mostly oil—have made up over half of the energy sector's greenhouse gases, far outpacing gas and coal. Transport, the largest emitting sector, drives this trend, with the country using nearly twice as much transport oil per person as the UK. This gap widened after New Zealand scrapped planned fuel economy standards for new cars in 2008.
The recent spike in oil consumption contrasts with progress in electricity. Renewable sources now supply over 90% of the country's power, pushing emissions from generation to record lows. The 2019 Zero Carbon Act helped reverse a long rise in fossil fuel pollution, while the 2022 emissions reduction plan set out a shift to cleaner energy. However, the current government is also exploring liquefied natural gas imports to boost supply. Other nations have taken stronger steps to cut oil dependence. The UK, for example, will ban new petrol and diesel cars by 2035, offers electric vehicle subsidies, and enforces rising sales targets under its ZEV mandate. New Zealand's oil use only returned to pre-1978 shock levels by 1990, showing how slow past transitions have been.
New Zealand's oil consumption has climbed to its highest quarterly level in years, driven by transport demand. While electricity is now mostly renewable, the country's reliance on oil for vehicles remains far above comparable nations. The gap highlights the challenge of reducing emissions in a sector still heavily dependent on fossil fuels.
