It's putting 70 million dollars into increasing electrification of industrial processes in the lower South Island, including helping businesses convert the boilers to electricity.
Coal Action Network Aotearoa spokesman, Tim Jones, says if this money simply goes into allowing Fonterra and other dairy companies to continue the industrial dairying model, then the overall outcome may not be that great.
He says it's good news but needs to be in the context of a wider programme to reduce emissions from both agriculture and industry.