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.
OPINION: Government, industry representatives and media always state: “our commentary, policy etc., is science based” and “the science is settled”.
But science is never settled as commonly claimed.
For example, the three estimates of the warming effect of methane are:
The Greenhouse Effect is 75% water vapour, 25% CO2 and trivial effects for methane and nitrous oxide. Methane is 7-8 times more effective re warming than CO2 = 1. The IPCC in its 2021 report states “expressing methane emissions as CO2 equivalent of 28, overstates the effect on global surface temperature by a factor of 3-4”.
This error is corrected by using Global Warming Potential (GWP) of 7-8x more effective than CO2. This is the basis for the GWP* metric, which is being considered by industry.
The cost of ignoring this IPCC conclusion to NZ is about $2 billion/ annum, which is apparently of no interest to bureaucrats and politicians.
Farming leaders (as well as the politicians, bureaucrats and government paid scientists) have no interest in even discussing the research behind the new US conclusions (zero or trivial effect of methane as a GHG). This is in spite of the fact that:
The contention that climate policy is “science based” is simply not true.
With about $200 million already spent on R & D with little to show for it, the chances a further $350 million for new research will produce solutions don’t appear too hopeful.
The new metric GWP* is based on very dubious science, but it is not suitable for “on farm” measurement of methane required under HWEN. It could be used for an industry-based approach, which would not require individual on-farm measurement. I would get rid of the immense and expensive bureaucracy and consulting overview required, a huge burden for industry.
Much is made of the split gas approach now enshrined in legislation, which treats methane separately from CO2. With no effect for methane, this is logical.
CO2 is touted as a long-lived gas, much of which is hyped to stay in the atmosphere for centuries to thousands of years. It is not a long-lived gas at all.
The half-life of CO2 is 10 years only. Just how we got to industry commentators saying human CO2 virtually stays in the atmosphere for ever is anyone’s guess.
As John Maynard Keynes said: “If the facts change, I change my mind, what do you do sir”?
Wouldn’t it be a good idea if all the parties could talk to each other for the industry and NZ’s benefit?
Dr Jock Allison. ONZM, FNZIPIM is a former head of AgResearch Invermay.
OPINION: After much wrangling, the Free Trade Agreement (FTA) between New Zealand and India is a step closer to fruition.
North Otago farmer Leilani Lobb has been named the 2026 Dairy Women’s Network (DWN) Regional Leader of the Year.
There's optimism emerging among farmers on the Chatham Islands after years of an irregular and poor shipping service.
Bay of Plenty leader and General Manager of Te Tawa Kaiti Lands Trust, Hinehou Timutimu, has been announced as the 2026 Fonterra Dairy Woman of the Year.
A large-scale modern orchard development in coastal Mid-Canterbury is expected to eventually produce 116 million apples a year from 900,000 trees while also becoming a significant employer for the region.
Silver Fern Farms has announced a major capital investment valued at over $100 million to redevelop freezing, cold storage, and automation facilities at its Finegand Site near Balclutha.

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