Ministry for the Environment Proposal - Reducing Agricultural Emissions

In 2016, under the Paris Agreement, New Zealand committed to reduce emissions by 30% below 2005 levels by 2030. While the Zero Carbon Bill has now been introduced to Parliament, which aims to help achieve this target, every sector is required to make changes in order for New Zealand to meet this target. 

As part of the overall strategy to meet this 2030 target the Government asked the Interim Climate Change Committee (ICCC) to look into possible options for reducing agricultural emissions.

The Government and farming sector have reached a consensus on the outcome to be put in place by 2025. The Government and farmers want emissions calculated at a farm level where farmers will have control over how they can manage their own emissions on their property.

The Government is now consulting on options for the interim period, between now and 2025 when the system for pricing emissions will be established.  

Based on the ICCC’s recommendations and through conversations with leaders in the agriculture sector the Government has now developed two options for managing emissions. Those options are:  

Option 1: Pricing livestock and fertiliser emissions at a processor level via the New Zealand Emissions Trading Scheme (ETS) with:

  • 95% free allocation of emissions units on agricultural emissions included in the ETS;
  • An action plan that sets out steps for implementing farm-level pricing; and
  • Recycling of funds raised back to the sector to incentivise emissions reduction and support implementation of the action plan (approximately $47 million per annum). 

Option 2: Establish a formal sector-government agreement including:

  • A programme of action to support reductions in farm emissions and progress for implementing farm-level pricing;
  • Industry resourcing and funding to a level necessary to implement a programme of action (including the reprioritisation of existing levy body funds of $25 million per annum over the five-year period).  

The Ministry for the Environment is now seeking feedback from the public on these on these options for managing emissions between now and 2025.

For more information, including how you can make a submission, go to:

The deadline for submitting feedback is 5pm on 13 August 2019.

Please contact us if you like to discuss the discussion document or would like assistance with preparing a submission.

Disclaimer: This is a brief summary for information purposes only and is not legal advice.


Posted on Monday 29th July, 2019 at 03:13 pm