Pricing agricultural emissions

Closed 18 Nov 2022

Opened 11 Oct 2022

Contact

AgEmissionsPricing@mfe.govt.nz

Overview

Update

Read the report under section 215 of the Climate Change Response Act 2002 (PDF 905KB)

The Climate Change and Agriculture Ministers published a report on the Government’s proposed system, a legislated requirement of the Climate Change Response Act (CCRA).

The report outlines a system to put a price on emissions from agricultural activities as an alternative to the New Zealand Emissions Trading Scheme.

The proposed pricing system is based on the farm-level split-gas levy designed by key representatives of the agriculture sector and the Federation of Māori Authorities as part of He Waka Eke Noa – Primary Sector Climate Action Partnership. The system has been informed by consultation and engagement with Māori, the agriculture sector and public submissions.

The report does not represent final decisions which will be made by Cabinet in early 2023.

About the consultation

Agriculture contributes half of our total greenhouse gas emissions. Many farmers and growers are already reducing their emissions. However further work is needed to help Aotearoa New Zealand become a low-emissions country.

To encourage more climate-friendly agriculture, the Government is proposing:

  • a farm-level, split-gas levy for pricing agricultural emissions
  • two options for pricing synthetic nitrogen fertiliser emissions 
  • an interim processor-level levy as a transitional step if the farm-level levy cannot be implemented by 2025
  • recognition for some types of sequestration in an adjacent contractual system from 2025, with a long-term goal of integration of new vegetation categories into the NZ ETS.

No feedback is sought on any other matters already set out in the Climate Change Response Act 2002 (CCRA).

Read a short summary of the consultation document (PDF 1.3MB)

Read the full consultation document (PDF 6.1MB)

Webinars

View a recording of the 18 October public webinar session.

What happens next

This consultation closed on 18 November 2022.

Once submissions have been considered, final proposals will go to ministers for approval in early 2023.