Wednesday, 06 November 2019 07:55

Deal done on ETS

Written by  Peter Burke
PM Jacinda Adern, Climate Change Minister James Shaw, DairyNZ chief executive Tim Mackle and Beef + Lamb chair Andrew Morrison. PM Jacinda Adern, Climate Change Minister James Shaw, DairyNZ chief executive Tim Mackle and Beef + Lamb chair Andrew Morrison.

Dealing with agricultural emissions is very much on the radar of farmers, says Beef + Lamb NZ chief executive Sam McIvor.

He told Rural News that recent surveys of farmers by BLNZ show that dealing with agricultural emissions is a high priority, as are animal health and farm efficiency.

His comments come after primary sector leaders and the Government late last month struck a deal which means farmers won’t have to start paying for their emissions until 2025, provided they make progress in finding ways to measure and price emissions at farm level. 

There will help from the Government and incentives for agriculturalists proactive in dealing with their on farm emissions.

The plan will see both parties working together to develop practical and cost effective ways to measure and price emissions at farm level by 2025. Meanwhile, legislation will still be passed putting agriculture into the Emissions Trading Scheme (ETS) from 2025, with a 95% discount rate. 

But the Government has put a ‘backstop clause’ into the legislation. This states that if it is proven that the agricultural sector hasn’t made sufficient progress by 2022 the Government will intervene and put the sector into the ETS earlier at processor level.

McIvor says the advantage of the agreement with the Government is that it puts agriculture more in the driving seat. 

He says arbitrarily putting farmers into the ETS now would have resulted in a lot of volatility.   

“My experience with farmers, over a long time, is that once you put the facts in front of them and the decisions are made then they just want to get on and do the right thing,” he told Rural News. “Now that we have this legislation, we need the Government to tell us what to do. 

“Farmers are really interested [in the range] of Government policies coming out that are broadly in the environmental space, such as water, elite soils and biodiversity.  I think farmers are trying to work out how to put all these things together in our farming systems.”

McIvor says that to date the Government can be criticised for not having struggled to look at these things in a holistic way.

Shoulder to shoulder

Government ministers and industry leaders are standing shoulder to shoulder in support of the deal.

Prime Minister Jacinda Ardern says the agreement is a world first and moves NZ closer to its goal of becoming the world’s most sustainable food producer. 

“We need a plan that supports our environment… and our primary sector. A plan that is practical innovative and achievable,” she said.

Ardern says it’s great to see primary sector leaders sharing the same aspirations as the Government.

Climate Change Minister James Shaw is equally upbeat, describing it as a huge step forward in NZ’s collective effort to combat the climate crisis. Shaw says they could have forced the sector into a pricing regime that it was completely allergic to and that would have been unsustainable. 

He says the agreement reached reflects a level of consensus that has never been reached in NZ before. 

“Our farmers are among the most adaptable, competitive, efficient, productive and innovative in the world. We are the first country to legislate the pricing of agricultural emissions. The world is looking to us for leadership and we will be the first to make it ok for others to follow,” he said.

Agriculture Minister Damien O’Connor joined in the self praise, describing the consensus as historical although not perfect. He says if there is one sector that recognises the value of cooperation it is the farming sector.

“Where we cooperate we succeed. Consumers are increasingly wanting to know that what they buy is good for them and good for the world. What we are doing is putting a price on emissions that will incentivise best practice in farming to build on our reputation as the best farmers in the world.” 

O’Connor says the agreement is a huge opportunity.

More like this

OSPRI's costly software upgrade

Animal disease management agency OSPRI has announced sweeping governance changes as it seeks to recover from the expensive failure of a major software project.

Forestry cuts into stock numbers

There is an urgent need for the Government to put a limit on the sale of farms for forestry - particularly for carbon farming.

Red meat's China push

The red meat sector is launching a new campaign to lure Chinese consumers to New Zealand grass-fed beef and lamb.

Featured

Boost for hort exports

The horticulture sector is a big winner from recent free trade deals sealed with the Gulf states, says Associate Agriculture Minister Nicola Grigg.

Better animal genetic gain system

A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.

SIDE 2025's new schedule, venue

Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.

National

The show is on!

It was bringing in a new Canterbury A&P Association (CAPA) show board, more in tune with the CAPA general committee,…

Food charity to hold online auction

Meat the Need, New Zealand’s dedicated charity delivering locally sourced protein meals to food-insecure communities, is launching an online National…

Machinery & Products

An ideal solution for larger farms

Designed specifically for large farms that want to drill with maximum flexibility, efficiency and power, the new Lemken Solitair ST…

Landpower increases its offering

Landpower and the Claas Harvest Centre network will launch the Claas Scorpion and Torion material handling solutions to the market…

» Latest Print Issues Online

The Hound

Leaky waka

OPINION: Was the ASB Economic Weekly throwing shade on Reserve Bank governor Adrian Orr when reporting on his speech in…

Know-it-alls

OPINION: A reader recently had a shot at the various armchair critics that she judged to be more than a…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter