Friday, 05 October 2018 12:52

Coming to grips with an ETS

Written by 

Following the conclusion of the Zero Carbon Bill consultation process, it has become clear that the local agriculture sector is likely to be included in the Emissions Trading Scheme (ETS).

So says Crowe Horwath’s agribusiness specialist, Sean Bennett.

While there is still debate on which of the three proposed Zero-Carbon Bill options will be applied, there are obvious benefits to be gained for farm businesses in establishing appropriate tree plantings, or retiring certain land areas to offset possible future emission liabilities, he says.

"Obligations of the ETS will also bring opportunities for farmers and it is vital the new policy is understood by those set to be impacted, including farmers,” he says.

“Farmers should ensure they are positioned to capitalise on opportunities, document their carbon footprint, and compare it to data on plant and lab-based alternate proteins. 

“When we can accurately measure what we have on-farm, and wrap the right story around carbon neutrality, we can then effectively take that to market.” 

Shane Jones, New Zealand’s Forestry Minister stated the government wants to “fix the ETS to make it more streamlined, accessible and flexible and give users more confidence and certainty,” Jones admits there has not been clear, consistent information around the ETS, further commenting “one of the proposed improvements is a consistent, transparent way of making a decision about the supply of ETS units.”

Current policy supports shelter and erosion planting as a method to create carbon credits.

 “If farmers can build on programs already in place by becoming more strategic with plantings, there is potential for farm businesses to create another income stream,” says Bennett.

 Assessing your exact carbon neutrality score requires input from carbon specialists, however, there are methods to develop a rule of thumb understanding of how individual farm businesses rank in carbon neutrality – 12ha of pines, willow or poplar trees/1000 sheep, or 5.7ha/100 beef cattle and 8.7ha/100 dairy cows are carbon neutral.

 “Most sheep and beef farm businesses we have assessed have proved to be carbon positive or well on the way to being so,” says Bennett.

“Sheep and beef farmers have an easier road to being carbon neutral, with latest figures showing that 24% of natural vegetation is on sheep and beef farms. There will be a point where we need to work alongside the dairy industry, as all agri sectors will be grouped together from a legislative perspective.”

With significant gains to be made from the ETS, Bennett urges farmers to take the time to educate themselves on their carbon position and consider how they can use it to their advantage. “If used correctly, it is an instrument that can add real value to your farming business.”

More like this

Don't hold back!

OPINION: ACT MP Mark Cameron isn’t everyone’s cup of tea, but he certainly calls it how he sees it, holding nothing back when ‘climate scientists’ had a crack at Kiwi farmers recently:

Emissions versus warming

OPINION: Soon New Zealand farmers will be asked to know their greenhouse gas (GHG) number. There are a vast number of GHG calculators available, all giving a different answer and none of them allowing for your pasture to be viewed as a CO2 ‘sequesterer’.

Changing Climate: A taste of the future

A high-resolution vineyard view of ecoclimatic indicators, and how they impact wine quality, can turn “climate insights into strategy”, says climate risk specialist Pete Taylor. “Whether you’re a grower, winemaker, or industry leader, understanding the future is key to staying ahead.”

No reason to demonise farming

OPINION: New Zealand has said it is going to reduce its greenhouse gas emissions by ‘a lot’ and ‘in a short time’. One of those gases is methane. Our biggest producer of methane is livestock farming.

Featured

Horticulture exports hit $8.4B, surge toward $10B by 2029

A brilliant result and great news for growers and regional economies. That's how horticulture sector leaders are describing the news that sector exports for the year ended June 30 will reach $8.4 billion - an increase of 19% on last year and is forecast to hit close to $10 billion in 2029.

National

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Be afraid

OPINION: Your old mate hears some of the recent uptick in farmer confidence has slipped since the political polls started…

Trust us!

OPINION: Ther'es a reason politicians rank even lower than John Campbell in the most trusted profession surveys.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter