Greenpeace sceptical as Government signs deal with agriculture to reduce emissions

Damien O'Connor signed a memorandum of understanding with agriculture leaders. Photo / Supplied

The Government has signed an agreement with the agriculture sector as part of an effort to get it to reduce its greenhouse gas emissions.

The Ministry for Primary Industries signed the memorandum of understanding with representatives from ANZCO Foods, Fonterra, Ngāi Tahu Holdings, Ravensdown, Silver Fern Farms and Synlait.

Agriculture Minister Damien O'Connor said the agreement would see "$172 million invested over the next four years by industry and government to develop and commercialise practical tools and technologies for farmers".

He said that in the first financial year industry would commit $7.75m, but ultimately funding for the scheme would be split 50-50 between industry and government.

Greenpeace was not impressed with the agreement.

Christine Rose, Greenpeace lead agriculture campaigner, said the Government could "cut agricultural emissions and usher in the regenerative farming revolution".

"Unfortunately, this government's current approach lacks the crucial regulatory teeth needed to make this happen, and ignores the core problem of too many cows," Rose said.

Agriculture is New Zealand's biggest emitter of greenhouse gas emissions, accounting for just under half of all emissions. Controversially, it has been left out of the Emissions Trading Scheme, meaning the sector pays no price for its climate pollution.

The Government's goal is to reduce carbon emissions to net-zero by 2050 and to reduce biogenic methane emissions by 10 per cent by 2030, relative to 2017 levels, and 24 to 47 per cent lower by 2050.

Agriculture produces 91 per cent of New Zealand's biogenic methane emissions.

The Government's Emissions Reduction Plan, published in May this year directed funds raised from the ETS into climate change mitigation.

Ministers decided to allocate $338.7m in funding from the ETS for on-farm emissions mitigation, despite farmers not themselves paying into the ETS.

The funding goes towards a Centre for Climate Action on Agricultural Emissions for research and development for new tools and technologies to reduce on-farm emissions.

It is not yet clear how much the funding will help the sector reduce its emissions.

"This represents a new and exciting way of working. By working together, we can help farmers shift the dial sooner," O'Connor said.

"New Zealand can be, and should be, a leader in developing innovative new tools and technologies to reduce emissions on-farm, and be the one other countries can look to," he said.

Rose said the Centre continued to "give a free pass to intensive dairy - New Zealand's biggest climate polluter".

She said it prioritised "technofixes" to the problem of agricultural emissions rather than addressing the core problem which was the size of the dairy herd.

"We already know the solutions needed to cut agricultural emissions: phasing out synthetic nitrogen fertiliser and halving the dairy herd. Instead, this Centre commits hundreds of millions on ineffective technofixes - on top of the hundreds of millions already spent over the last decades.

"It's an insult to those who are being slammed right now by climate-fuelled disasters across the globe," she said.