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Energy sector

The energy sector reports emissions from fuel combustion (including transport and combustion to produce heat in industry), and fugitive emissions.

The entire energy sector was the source of 33.5 Mt CO2-e or 43 per cent of all emissions in 2005. The energy sector experienced the highest rate of emissions growth of any sector between 1990 and 2005. Emissions increased by 42 per cent (9.9 Mt CO2-e) over the period. Figure 7 shows energy emissions by category in 2005.

Fuel combustion is the controlled burning of solid, liquid or gaseous fossil fuels (such as coal, petrol and natural gas) to generate heat or energy.

Fugitive emissions are associated with the production, processing, transport, storage, transmission and distribution of fossil fuels such as coal, oil and natural gas.

Figure 7: Emissions from the energy sector: 2005

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Fuel combustion

Transport

Transport emissions include those from road, rail, and domestic air and water transport. International air and water transport are not included in these emissions totals. This separation is required to meet international reporting guidance.

In 2005, transport contributed 14.2 Mt CO2-e, or 18 per cent of New Zealand’s total emissions. Emissions were 62 per cent higher in 2005 than in 1990 (8.8 Mt CO2-e).

  • Road transport represented 89 per cent (12.6 Mt CO2-e) of domestic transport emissions in 2005. Emissions from road transport increased by 65 per cent (5.0 Mt CO2-e) between 1990 and 2005.

  • Aviation contributed 7 per cent (1.0 Mt CO2-e) of emissions from domestic transport. Emissions from aviation in 2005 were 31 per cent (0.2 Mt CO2-e) higher than in 1990.

  • Emissions from shipping in 2005 were 3 per cent (0.4 Mt CO2-e) of domestic transport emissions. Shipping emissions increased by 59 per cent (0.15 Mt CO2-e) between 1990 and 2005.

  • Rail emissions were 1 per cent (0.2 Mt CO2-e) of all emissions from domestic transport. Emissions from rail increased by 95 per cent (0.07 Mt CO2-e) between 1990 and 2005.

Energy industries

Electricity generation, petroleum refining, gas processing and solid fuel manufacturing are all reported under energy industries. Emissions from energy industries were 9.3 Mt CO2-e in 2005 and 12 per cent of national emissions. Energy industries emissions increased by 54 per cent (3.2 Mt CO2-e) between 1990 and 2005. This increase is primarily due to growth in electricity demand in New Zealand. Increasing demand has required more thermal generation – burning more gas, coal and oil.

Electricity generation and heat production comprised 88 per cent (8.2 Mt CO2-e) of the energy industries sub-category in 2005. The remaining 12 per cent of emissions are from petroleum refining (9 per cent) and gas processing and solid fuel manufacturing (3 per cent).

Manufacturing industries and construction

This category includes emissions from the manufacture of steel, non-ferrous metals, pulp and paper, and emissions from food processing. Emissions from manufacturing industries and construction contributed 6 per cent (4.9 Mt CO2-e) to New Zealand's total greenhouse gas emissions in 2005, a 6 per cent increase from the 1990 level (4.6 Mt CO2-e).

Other fuel combustion

This includes emissions from commercial, institutional and residential sectors. It covers fuel used by agricultural, fishery and forestry equipment and all other fuel combustion emissions. Emissions were 3.4 Mt CO2-e, or 4 per cent of national greenhouse gas emissions in 2005. This was a 17 per cent increase (0.5 Mt CO2-e) above emissions reported in 1990 (2.9 Mt CO2-e).

Fugitive emissions

Fugitive emissions in 2005 were 1.6 Mt CO2-e, representing 2 per cent of the national total. Emissions increased by 33 per cent (0.4 Mt CO2-e) from 1990 (1.2 Mt CO2-e).