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4 National ‘would restore ag confidence’ Vol 21 No 32, August 21, 2023
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Govt delays, softens regs on emissions Neal Wallace
NEWS
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He Waka Eke Noa
NEW agricultural emissions reduction policy approved by the cabinet removes most but not all aspects of an earlier proposal that the primary sector walked away from in June. Issues raised at the time by the He Waka Eke Noa (HWEN) partnership appear to have been addressed, such as delaying the requirement to report farm-level emissions by almost a year and the pricing of those emissions from late 2025, and the government recognising scientifically validated on-farm sequestration in the Emissions Trading Scheme (ETS). But a review of methane targets and their impact on global warming – requested by Beef + Lamb New Zealand (BLNZ) and Federated Farmers – is not included. Agriculture Minister Damien O’Connor said the new proposal is the result of discussions and agreement with farming leaders. “The decisions announced today set out a path that gives farmers certainty and addresses the everstrengthening market signals from overseas on climate,” he said. The policy includes the development of a system to measure emissions and retains the proposal to price emissions at farm level, a split gas approach and
greenhouse gas prices, which will not be determined until 2025, set at the lowest level needed to meet reduction targets. This year’s Budget allocated $15.4 million to continue the development of a system to enable farmers and their advisers to calculate and report agricultural emissions, which is needed to underpin farm-level pricing. O’Connor said like it or not, the sector has to adapt and reduce its emissions, a fact he said the HWEN partnership acknowledges. He said the government has listened, is being flexible and is accommodating issues raised by the HWEN partners on timelines and establishing a framework for factors that will determine the farm-level levy price. “We have shifted farm-level emissions reporting requirements into Quarter 4 of 2024. Emissions pricing won’t start until two years from now in Quarter 4 of 2025, and work will also get underway to allow scientifically validated forms of on-farm sequestration into the ETS, which can help reduce the cost to farmers.” He said the implementation plan supports farmers’ transition, helps meet the requirements of export customers and works alongside other climate policies. A policy to defer until later in the year the requirement for farmlevel reporting from January 1 Continued page 3
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