NZ ETS Settings Hold Steady Amid Shortfall Warning
The Climate Change Commission has recommended maintaining the current New Zealand Emissions Trading System (NZ ETS) settings but warns of a potential unit shortfall as early as 2028.
DairyNZ chairman Jim van der Poel claims not too many farmers are keen on an Emissions Trading Scheme (ETS).
He told Rural News that at the first few farmer meetings last week, "a vast majority" agreed with the other two options on the table - a farm-level levy and processor-level hybrid levy.
Van der Poel spoke at meetings in Waikato and Bay of Plenty last week. Discussions were "constructive".
"Once people get to know what we are seeking, they start to engage," he says.
Van der Poel says farmers realise that under an ETS, costs will escalate.
"It will become another tax; not too many people think an ETS is the best option."
The Primary Sector Climate Action Partnership (He Waka Eke Noa), which includes DairyNZ and B+LNZ, will report its recommendations to Ministers by May 31.
Van der Poel says the two options proposed by the partnership would deliver more positive outcomes for farmers and New Zealand than the NZ ETS.
"A farm-level levy and processor-level hybrid levy are more practical and reward positive change, while still achieving environmental outcomes.
"Some of the money raised will be invested back into R&D and on-farm work to reduce emissions."
Following initial farmer feedback on the options in December, the partners are also putting forward a two-phased approach, starting with the processor-level hybrid levy option and transitioning to a farm-level system in future.
B+LNZ chairman Andrew Morrison says doing nothing is not an option.
"If we don't move on this, the Government will put agriculture in the NZ ETS. They have already put this into legislation but have agreed to listen if we come up with a credible alternative," he says.
"We know this is a challenging and uncertain time for farmers but we need to keep going with this consultation and find the right solution," he says.
"We pushed hard for as long an extension as possible and the Government agreed to a month - this was the longest they felt fitted with their legislative timeframe. It's not ideal, but going for longer and ending up in the ETS is also far from ideal."
New Zealand exports to the European Union have surged by $3 billion in two years under the New Zealand-European Union Free Trade Agreement.
A new joint investment of $1.2 million aims to accelerate farmer uptake of low-methane sheep genetics, one of the few emissions reduction tools available to New Zealand farmers.
The Food and Agriculture Organization of the United Nations (FAO) has issued a stark warning about the global implications of the ongoing Gulf crisis.
Fonterra has announced interim changes to the leadership of its Global Ingredients business.
New Zealand agritech company Halter has announced unveiled a new direct-to-satellite technology solution for its smart collars for beef cattle, unlocking virtual fencing for some of the country's most remote farming regions.
Dairy Women's Network (DWN) has announced a new limited edition DWN Monopoly NZ Dairy Farming Edition, created to celebrate the people, places and seasons.