The government has accepted most of the proposals put forward by the He Waka Eke Noa partnership to price agricultural emissions, but industry groups are concerned some of the recommendations have been excluded.
The farm-level, split gas approach has made the cut, but modifications have been proposed on how sequestration is calculated.
“We need to further analyse these changes carefully, but one area of immediate concern is the proposed changes to sequestration, which is of real importance to sheep and beef farmers,” Beef + Lamb NZ chair Andrew Morrison said.
“We know we have a role to play in addressing climate change and our farmers are among the first to feel the effects of it.
“However, if farmers are to face a price for their agricultural emissions from 2025, it is vital they get proper recognition for the genuine sequestration happening on their farms.”
Meat Industry Association chair Nathan Guy said although the government proposal is better than agriculture entering the emissions trading scheme (ETS), there is room for further improvement.
“Sheep and beef farmers and the meat processing and exporting sector collectively generate $12 billion in income per year for the country and account for more than 92,000 jobs, almost 5% of New Zealand’s full-time workforce. It’s critical we have the right policy settings so our sector can continue to deliver for our farmers, our processors and exporters, rural communities and the country.”
Prime Minister Jacinda Ardern said the changes made in the consultation document were based on advice from the Climate Change Commission.
“This is an important step forward in New Zealand’s transition to a low-emissions future and delivers on our promise to price agriculture emissions from 2025,” Ardern said.
“The proposal aims to give New Zealand farmers control over their farming system, providing the ability to reduce costs through revenue raised from the system being recycled back to farmers, which will fund further research, tools and technology and incentives to reduce emissions.”
Consultation will begin to work through sequestration, the levy setting process and transition assistance from now until November 18.
He Waka Eke Noa (HWEN) programme director Kelly Forster said its partners are pleased the government has listened to the partnership on the need for a farm-level system rather than including agricultural emissions in the New Zealand Emissions Trading Scheme (NZETS).
“A farm-level system as recommended by He Waka Eke Noa will enable each farmer and grower to clearly see the direct impact of their on-farm decisions and would give them incentives for using new technologies and practices as they become available. Our modelling shows it will be more effective in achieving emissions reductions than including agriculture in the NZETS at the processor level.
“He Waka Eke Noa’s recommendations were, however, designed as a carefully balanced package that was as equitable as possible across all parts of the primary sector.
“The government has proposed alternative approaches in some areas, such as how sequestration is recognised, which may fundamentally alter the balance and could have significant implications for sheep, beef and deer farmers.
“Partners will need to carefully work through the detail to understand the impact and it will be important to discuss these with their farmers and growers.
“Partners want to work with the government to ensure the impact of the levy is manageable for farmers and growers, so that emissions are reduced while the viability of farm businesses is maintained.”
She said it is important that farmers and growers take the opportunity to have their say during the consultation process.
“New Zealand is the first country to seek to put a price on agricultural emissions. This has significant implications for the viability of the primary sector and the New Zealand economy and it’s vital that we work with the government to get this right,” Forster said.
Deer Industry New Zealand (DINZ) is concerned about the impact of prices on farmers who have no cost-effective way to reduce their emissions of methane and nitrous oxide, Deer Industry NZ chair Mandy Bell said.
She said the largest impact falls upon the most extensive farming systems.
“DINZ will be reinforcing to policy makers what they have already recognised – that the farm price needs to allow businesses to remain economically viable until practical tools to reduce methane and nitrous oxide emissions from pastoral farming are available.
“We believe it is essential that government and sector invest in developing and bringing new technologies to NZ farmers to help them reduce their gross emissions as soon as possible. If our farmers have practical technology they can use, they will use it. Our farmers are rapid adopters and are innovative.”
Read the full document and have your say here.
