Agriculture removed from Emissions Trading Scheme; He Waka Eke Noa disbanded

The coalition Government has stopped agriculture from being included in the ETS. Photo / Supplied

The coalition Government has stopped agriculture from being included in the Emissions Trading Scheme (ETS) and disestablished climate change initiative, He Waka Eke Noa.

In a statement, the Government said it was still committed to meeting its climate change obligations “without shutting down Kiwi farms” and had set up a new initiative. The Ministry for Primary Industries’ webpage for He Waka Eke Noa has been removed.

The Green Party said the Government was kicking the “climate action can down the road” and disregarding the climate and environment. Labour said the changes would lead to delays which would make decarbonising the economy more expensive in the long run.

The Emissions Trading Scheme was introduced in 2008 under the Labour Government to reduce greenhouse gas emissions emitted by certain industries.

The scheme puts a price on emissions, meaning certain sectors of the economy are charged for the greenhouse gases they emit.

The most recent Labour Government legislated to include agriculture in the scheme by 2025, but today’s announcement from the coalition Government stops that.

Agriculture Minister Todd McClay said a new Pastoral Sector Group would be established to “constructively tackle biogenic methane”.

Minister of Agriculture Todd McClay. Photo / Mark Mitchell

“The Government is committed to meeting our climate change obligations without shutting down Kiwi farms,” he said.

The law would be changed later this year to remove agriculture, animal processors and fertiliser companies from the ETS by next year.

“We are focused on finding practical tools and technology for our farmers to reduce their emissions in a way that won’t reduce production or exports.”

He Waka Eke Noa gone

McClay says the He Waka Eke Noa process had failed and was no longer tenable. He claimed Labour had rejected many of the primary sector’s proposals and shutting down the He Waka Eke Noa would “restore confidence”.

“It’s time for a fresh start on how we engage with farmers and processors to work on biogenic methane.”

The Government would engage directly with levy bodies and sector organisations that represent the pastoral sector such as DairyNZ, Beef + Lamb New Zealand, Deer Industry New Zealand, Federated Farmers, Dairy Companies Association of New Zealand, and the Meat Industry Association.

Terms of reference for the Pasture Sector Group would be developed and agreed with the group.

Meanwhile, Climate Change Minister Simon Watts said the Government had committed $400 million over four years to “accelerate the commercialisation of tools and technology to reduce on-farm emissions”.

He said these investments “signalled [the] Government’s support for farmers while ensuring New Zealand meets its international climate change obligations”.

Green Party co-leader Chloe Swarbrick called the minister’s statement on climate change commitments “sheepish” and a “far cry from reality”.

Greens co-leader Chloe Swarbrick. Photo / Marty Melville

“The science tells us we must reduce methane emissions. Fair pricing is a crucial way to achieve this, putting the sector on an even footing with the rest of our economy.”

Labour agriculture spokesperson Jo Luxton said offshore buyers demand products that were produced sustainably and New Zealand’s primary producers relied on these markets.

“The longer we wait to decarbonise our economy, the more expensive it becomes and the bigger the damage to our industries and farming sectors in the long run.”

Industry groups Federated Farmers and Dairy NZ welcomed the Government’s move.

Dairy NZ chairman Jim van der Poel said including agriculture in the ETS could have pushed production to less-efficient producers offshore.

He said while there were currently no significant technologies to reduce methane emissions from New Zealand pastoral farms, farmers were making progress towards measuring on-farm emissions.