New Zealand businesses are committing substantial resources to decarbonisation, according to new survey data. The ABB Asia Pacific Energy Transition Readiness Index 2025 found 77% of leaders plan to invest over 10% of capital expenditure in transition-related initiatives.
The index is a collaborative efforts between Sandpiper Research and and Insights and is based on responses from more than 4,000 professionals in 12 regional markets.
Energy Transition Investment in New Zealand Outpaces Regional Peers
Survey results from more than 200 New Zealand business, IT, and sustainability leaders show the country outpacing the regional average in capital spending on energy transition. Water and waste solutions lead at 98%, followed by energy and power generation (86%), and IT-related sectors (78%).
Geopolitical Disruption Seen as an Opening for Climate Leadership
Despite shifting international conditions, including climate-related geopolitical developments, 78% of New Zealand respondents see these changes as an opening to take on greater global leadership.
While 66% said their energy transition plans remain unaffected by geopolitical uncertainty—suggesting that climate objectives are already embedded into long-term strategies.
“New Zealand’s high share of renewable electricity – around 85%, mainly from hydropower, geothermal and wind energy – gives it a strong foundation to lead the Asia-Pacific region in electrification and decarbonisation,” said Anders Maltesen, President of ABB Energy Industries Asia.
Technology Recognised as Central to Reaching Net-Zero Targets
67% of business leaders identified technological advancement as the most critical factor in making progress, with New Zealand needing to increase electricity use by over 60% to meet its 2050 net-zero targets.
However, renewable generation forms the backbone, digital infrastructure and innovation will be needed to scale delivery.
Automation, digitalisation, and artificial intelligence were identified as underused tools, particularly for optimising energy systems and reducing emissions.
Workforce and Resourcing Challenges Risk Slowing Down Progress
Nearly half (49%) of New Zealand organisations reported being under-resourced for their energy transition objectives, while 59% said they struggled to recruit skilled staff into green roles, the resource gaps threaten to slow down momentum.
Hiring barriers were also flagged, including company brand perceptions and a tendency to retrain existing staff rather than recruit externally. These challenges could jeopardise long-term delivery if left unaddressed.
Renewable Energy and Grid Reliability Drive Investment Focus
Hydropower remains dominant (68%), followed closely by solar (65%), wind (64%), geothermal (47%), green hydrogen (44%), and biomass (35%) in terms of generation sources.
“Geothermal is a great opportunity for the country as it provides a stable power supply alongside wind and solar and is a key resource that can help balance the grid and provide consistent electricity generation,” Maltesen stated.
ABB is currently involved in New Zealand’s geothermal expansion, including a fully integrated solution for Contact Energy’s Te Mihi Stage 2A power plant. The company is delivering the Governor Control system, along with real-time monitoring and predictive maintenance—particularly important in New Zealand’s seismically active landscape.
Business leaders surveyed expressed strong support for collaboration across sectors, including public-private partnerships, expanded grid connectivity, and targeted government incentives. A clear 92% of New Zealand respondents agreed that business leaders must do more to drive decarbonisation efforts.