A total of 45 project proponents submitted bids for the four million emission units, or carbon credits, being offered in the first tender round for Projects to Reduce Emissions.

"This hugely positive response shows that a healthy number of businesses, both public and private, are keen to reduce emissions of greenhouse gases and be rewarded for it," enthused the minister, who is also Convenor of the Ministerial Group on Climate Change.

"The high number of bids and the variety and innovation they involve mean we will be able to choose the very best projects on offer. This is good for New Zealand and good for business."

Proposals include wind farms, hydro, geothermal and landfill gas electricity projects, as well as a range of bio-fuel and bio-energy projects and schemes for waste treatment. Most will generate electricity or reduce the demand for it.

"Many of these projects will meet the government's objective of making New Zealand's electricity supply more secure in the near future and contribute to the target for renewable energy.

"They are an important step in taking New Zealand towards a clean, green and sustainable energy future," Hodgson enthused.

The New Zealand Climate Change Office is evaluating the projects, which must deliver a minimum reduction in emissions during the first commitment period of the Kyoto Protocol, 2008-2012; go beyond "business-as-usual"; and achieve measurable reductions in greenhouse gas emissions that would not otherwise have happened.

If the pool of four million emission units is oversubscribed, priority will be given to projects that will contribute most to electricity security in the near future.

Successful projects will be decided by early December and the first agreements between project owners and the government are expected to be finalised before Christmas.