Govt urged to reduce ETS units
The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as possible.
As farmers are consulted on the two He Waka Eke Noa (HWEN) emissions pricing proposals, the Climate Change Commission will be holding a Zoom session on the advice they will provide to the Government.
The session, to be hosted on 23 February, will feature principal analysts Sally Garden and Chris Holland taking attendees through the advice the Commission is developing for the Government and how it fits in with the decisions the Government will make by 31 December 2022.
Holland is leading the Commission’s advice on what financial advice, if any, should be provided to farmers and how assistance fits in with the proposals set out by HWEN.
Garden is leading the Commission’s advice on farmer readiness.
“It’s an opportunity to find out more about the advice we’re developing and how it will fit in with the decisions the Government will need to make by the end of the year,” Sally Garden, principal analyst in the Commission’s land and waste team, told Rural News.
She says the session will be important for those who want to understand the process the Commission is undertaking.
“It can be challenging to understand how our work fits in with the work that He Waka Eke Noa and the Government are doing, so this session is designed to help people understand the independent role that the Commission is playing with our advice on agricultural emissions pricing.”
Previously, the Commission has advised that emissions pricing is important but should only be part of the response in reducing agricultural emissions.
“In our advice, we emphasised the importance of the Government following through on its legislated commitment to decide on a pricing mechanism for agricultural emissions by 31 December 2022, to avoid ongoing uncertainty – which will deter farmers and growers from reducing emissions in the short term,” says Garden.
“The Government will also need to progress work on other policies that support emissions reductions on reductions on farm, while also balancing the social and economic impacts to the sector.”
Garden told Rural News that the advice would provide an evidence-based assessment of the progress made through the HWEN partnership to prepare farmers and the sector for a farm-level pricing system, or if more work needs to be done.
“Agricultural emissions are legislated to enter the Emissions Trading Scheme by 2025. The Government can bring them in sooner if it believes the HWEN partnership has made insufficient progress in preparing the farming sector for farm-level emissions pricing,” she says.
“Our assessment will help the Government understand how ready farmers are for an emissions pricing system that is practical, effective and equitable, along with how and why financial assistance might be provided to farmers.”
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