The recent consultation process with farmers highlighted how important the issue of sequestration was to them, Ardern said.
“This is work we already had underway, but the next step will be to work closely with farmers to develop the scientific, and policy approaches needed to best recognise sequestration that occurs on farms.”
Agriculture Minister Damien O’Connor said the industry had asked for a plan that covered “all forms of scientifically robust sequestration possible” on-farm, which the Government supported.
Listen to Jamie Mackay interview Prime Minister Jacinda Ardern at Fieldays on The Country below:
However, it wouldn’t be an easy task, he said.
“There is more work to do, much of it technical, but today we affirm that this will be undertaken in close partnership with the sector.”
O’Connor said the sector partnership recommended that the Emissions Trading Scheme be improved and updated to allow more vegetation categories to be included, and that vegetation types eligible under He Waka Eke Noa could be transitioned into the NZ ETS as it is expanded and improved.
“This builds on the Government’s commitment to establish native forests at scale to develop long-term carbon sinks and improve biodiversity,” he said.
Climate Change Minister James Shaw said the proposal represented a “significant shift” in the way the Emissions Trading Scheme worked.
“It means farmers will get full recognition for scientifically proven sequestration on their farms.
“This should unlock a wave of research, science and innovation into forms of emissions removal that also enhance biodiversity and other important values that aren’t always achieved through exotic forestry plantations.”
Shaw echoed O’Connor’s statement that the process wouldn’t be a simple undertaking.
“Bringing new categories into the ETS may take some time, so there will also be a need to ensure transitional arrangements from 2025.”