In 2021, the Government announced the establishment of a new ‘Climate Emergency Response Fund’ (CERF). The fund was set up with an initial $4.5 billion ‘down payment’ for Aotearoa New Zealand’s climate spending, proportional to the proceeds of the Emissions Trading Scheme.
The CERF is an enduring, multi-year fund which is designed to address the long-term nature of many of the challenges presented by climate change. The CERF is intended to provide a dedicated funding source for public investment on climate-related initiatives distinct from the main Budget allowances.
Hive Infrastructure worked with our delivery partner in the development of a robust procurement strategy for the $4.5 billion Waka Kotahi Climate Emergency Response Fund (CERF). The primary objective was to guide procurement planning, decision-making, and project management while fostering ambition and innovation in climate-related initiatives.
To lay the groundwork for the procurement strategy, the project team (example per text above) conducted an extensive review to fully comprehend the aims, objectives, scope, and requirements of the Climate Emergency Relief Fund. This process included an in-depth desktop study and interviews with key stakeholders involved in the project. This thorough assessment allowed for a comprehensive understanding of the fund's aspirations and the challenges it aimed to address.
Drawing upon the insights garnered during the requirements gathering phase, Hive Infrastructure developed a draft framework for the CERF procurement strategy document. The framework was designed to address gaps and inefficiencies identified during the review, ensuring a more robust and effective procurement approach. Stakeholders with high interest and influence were actively engaged, and their feedback was incorporated to ensure alignment with their expectations and objectives.
A key focus of the procurement strategy was to infuse ambition and foster innovation in the procurement process. Acknowledging the urgency of climate challenges, the strategy emphasised the promotion of sustainable technologies and progressive procurement practices. By doing so, the CERF sought to have a significant impact on mitigating the effects of climate change on New Zealand's transportation infrastructure.
Efficient Planning for Procurement
The CERF Programme recognized the importance of strategic procurement planning. To achieve this, Hive Infrastructure worked alongside its partners to create a framework to enable a future procurement pipeline tool to be implemented, incorporating procurement activity, contract registers, existing models and establishing a forward pipeline.
As the CERF was a national program reliant on collaboration with various delivery partners, such as Local Authorities and Public Transport Authorities, the procurement strategy was formulated to encourage cohesive collaboration wherever possible. This included the establishment of a procurement centre of excellence to facilitate knowledge-sharing and best practices among stakeholders. Moreover, the strategy allocated additional funding to support local councils in effectively fulfilling their procurement responsibilities. This collaborative effort aimed to strengthen relationships and enhance collective accountability for successful climate-related initiatives.