Our voice vital on ETS pricing

• Published date: 19 January 2022
• Publication title: Stratford Press

The cross agrisector partnership includes Beef + Lamb New Zealand, DairyNZ and Federated Farmers, as well as Government and iwi/Māori

“It’s critical we grab this opportunity and develop a credible alternative framework as the Government has already legislated to put agriculture into the NZ ETS if we don’t,” says DairyNZ chairman Jim van der Poel.

“The NZ ETS pricing would be out of farmers’ control and they would face a broad-based tax. Also, farmers wouldn’t get recognition for on-farm work to reduce emissions.

“We’re working to get a better deal for farmers while still meeting environmental goals.”

The farm-level levy and processor-level hybrid levy options in the discussion document take a split-gas approach. They acknowledge short-lived gases like methane have a different warming impact to long-lived gases like carbon dioxide, and the price for methane will be separate and delinked from the carbon price.

“We want the framework farmers select to incentivise work under way on-farm including sequestration and riparian planting. The two options would ensure any revenue raised by the pricing system would go back into R&D for innovative solutions and support farmers’ on-farm work to mitigate their warming impact,” says B+LNZ chair Andrew Morrison.

The new framework isn’t expected to come into force until January 1, 2025, (but it could be sooner if the NZ ETS is selected by the Government). The Government has made it clear it will put agriculture into the ETS if the partnership does not come up with a credible alternative.

Farmers will have the opportunity to have a say in February when B+LNZ, DairyNZ and Federated Farmers take a nationwide roadshow to the regions.

“We’re releasing the draft discussion document now so farmers have time to consider the options. At the roadshow meetings, we’ll explain what the options mean for different farming systems, and most importantly answer questions and hear farmers’ views,” says Morrison.

A more detailed information pack on the options will be released by the partnership early next year ahead of the roadshow. Farmers will be able to give their feedback online then too.

“It’s hugely important farmers get involved and tell us what they think in February. We’re committed to finding a solution that works for farmers and keeps the sector in control of where and how it uses funds for the benefit of farmers,” van der Poel says.

The Primary Sector Climate Action Partnership — He Waka Eke Noa, consists of 10 primary sector...