New Zealand’s Tyrewise scheme has awarded $1.2 million in grants to 11 projects focused on developing new uses for end-of-life tyres, marking the first distribution since the programme’s launch in March 2024. The scheme, funded by a levy on imported new tyres, aims to encourage sustainable tyre recycling and reuse across the country.
In 2026, Tyrewise plans to allocate at least $2.3 million in total grants, with the remaining funds committed in principle. Between its inception and March 31, 2025, the Ministry for the Environment collected $31.9 million from the tyre levy to support the stewardship programme. Of this revenue, 9% is earmarked for projects that promote tyre reuse technologies and applications.
The grants are managed by Puna Taurima, the Tyrewise Fund, with Dominic Salmon serving as a fund adviser. Salmon emphasized the fund’s ambition to process 90% of collected tyres domestically. The latest funding round attracted over 60 applications, with nine recipients selected after a competitive review process.
Among the successful applicants, engineering consultancy WSP received $625,000 for three roading-related projects. Their work includes addressing environmental concerns linked to using tyre-derived materials in road construction, overcoming technical challenges associated with integrating tyre rubber in chip seal road surfaces, and revising New Zealand’s roading specifications to better accommodate recycled rubber products. In total, five of the funded projects focus on road infrastructure, reflecting a longstanding alignment between the road construction sector and tyre recycling efforts.
Environmental Contamination (NZ) was awarded $212,000 to develop a reliable process for converting tyres into a uniform grade of rubber powder, with completion targeted for early 2028. The research aims to create versatile materials suitable for multiple sectors, including construction.
Other projects include a $120,000 grant to Kiwi company Watersmart to pilot the use of tyre rubber in permeable pavements, which help facilitate water drainage through soil without requiring additional drainage infrastructure. Additionally, three schools collectively received $277,000 for community initiatives to install recycled rubber playground surfacing, offering a durable and hygienic alternative to traditional materials such as wood chips.
Since the tyre stewardship scheme began, Auto Stewardship NZ and the 3R Group have overseen the collection and processing of tyres. According to their March 31, 2025 annual report, approximately 36,801 tonnes of used tyres have been collected, equivalent to 4.6 million passenger car tyres. This effort has prevented the disposal of tyres equating to the volume of 155 Olympic-sized swimming pools in landfills and stockpiles. Illegal dumping has also shown a notable decrease, with reports of 461 tyres dumped in Palmerston North in 2024, a 47% reduction compared with 2023.
Despite progress, the report noted continued reliance on overseas processors while domestic recycling capacity is still maturing. Although New Zealand technically has sufficient processing facilities, these are largely concentrated in the North Island, forcing exports of tyres from the South Island. Processing capacity for larger off-the-road tyres remains inadequate, necessitating their export regardless of location.
Technical challenges, alongside perceptual issues such as concerns about odour when using tyre rubber in road surfacing, continue to constrain wider adoption. Salmon highlighted ongoing efforts to refine product specifications and address concerns from councils and government agencies, which will be critical to expanding the use of recycled tyre materials in New Zealand infrastructure.