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FARMERS WEEKLY – farmersweekly.co.nz – February 7, 2022
Feedback sought on pricing Colin Williscroft colin.williscroft@globalhq.co.nz AFTER the He Waka Eke Noa (HWEN) emissions pricing roadshow was put on hold to reschedule meetings as the country moved into the covid red traffic light setting, it’s set to begin this week. Following initial farmer feedback on two emissions pricing options for agriculture, along with a backstop of going into the Emissions Trading Scheme (ETS), a third approach is being put forward by HWEN partners as the roadshow explaining the options to farmers kicks off. After feedback on a farm-level levy and a processor-level hybrid levy was floated in December, the partners are now also putting forward a separate two-phased approach, starting with the processor-level hybrid and then transitioning to a farm-level system in the future. DairyNZ chair Jim van der Poel said there are pros and cons for both options being put forward by HWEN. “The processor hybrid will be easier to implement and run,” Van der Poel said. “We can get it up and running much more quickly.” He said the farmer-facing levy will be more difficult to put in place and run because farmers will need to be clear on what their individual starting numbers are and what they are measuring every
year which will take more work to get ready. “Ours (DairyNZ) and most farmers’ preferred option is to go for the farmer one, but we’re looking at maybe starting with the processor hybrid one and then transitioning over time,” he said. “That’s part of where our thinking has evolved and that’s part of what we’ll be talking to farmers about.” HWEN programme director Kelly Forster said the pricing system is part of a whole framework around managing agricultural greenhouse gas emissions. “Paying a price isn’t the only thing that would encourage farmers to reduce emissions,” Forster said. That’s why the options are based on putting money raised back into research and development, incentives to uptake technology, or actions on-farm that help reduce emissions. She said the pricing options’ aim is to recognise the efforts of individual farms as they reduce their emissions. Farms could also choose to combine forces as collectives to report and account for their emissions. Feedback from the roadshow and online will form part of HWEN’s recommendations to the Ministers of Climate Change and Agriculture that is due by late April. However, DairyNZ, B+LNZ and Deer Industry NZ have jointly written to ministers seeking an
Let’s find a better solution to the ETS
OPTIONS: DairyNZ chair Jim van der Poel says there are pros and cons for both options being put forward by He Waka Eke Noa. extension to the consultation timetable, while Federated Farmers president Andrew Hoggard has also written directly to Prime Minister Jacinda Ardern to delay the April 30 deadline until the country is back in the orange traffic light setting. Van der Poel says the extension sought is only for a month, but farmers need to get involved because the fallback of going into the ETS will do them no favours. Going into the ETS will mean reverting to legislation that does not recognise the split-gas approach that is a cornerstone of the HWEN options. He said the ETS is designed to change behaviours around longlived gases like CO2, so that over time that will drive the price up. “That’s the way it’s set up, it encourages behavioural change,” Van der Poel said. “But methane is a short-lived gas and it (the ETS) does not suit it.
“The legislation as it’s drafted, it’s a poor option for NZ and for NZ farmers. “The ETS was not set up for short-lived gases like methane and if it (methane) was pushed into the ETS, it would have major implications for NZ farmers. “We know that some farmers would like the opportunity to revisit the targets, but the opportunity to revisit all those targets will come in 2024 when the next review is. “The main discussion here is around should farmers go into the ETS or do they prefer one of the options we’re presenting.” He said although some farmers want shorter-term changes, they need to focus on the bigger picture. “The main discussion is should farmers go into the ETS or do they prefer one of the options we’re presenting,” he said. “If you have some views on the
options we’re presenting, the pros and cons or whether you think we can make them better or if you have a preference, that’s what we’re really keen to engage in.” He just wants farmers to engage in the process because the current situation is not likely to be repeated. “There’s nothing to suggest we’ll get another chance for this and there’s a good chance we won’t,” he said. “To miss this opportunity and end up in the ETS, that would be a very poor outcome. “NZ farmers are pretty efficient already, but this is about us maintaining our position. “If we have a mechanism where we can have some influence going forward, we’ve got a much better opportunity of doing that than the alternative (the ETS).” For details of the roadshow, go to either the DairyNZ or Beef + Lamb NZ websites.
The Government has legislated that agriculture greenhouse gas emissions will be priced by 2025 to meet emission reduction targets. The agriculture sector is already committed to playing its part in reducing emissions, and we know there is a better solution than the New Zealand Emissions Trading Scheme (ETS). That’s why DairyNZ and Beef + Lamb New Zealand are industry partners of the Primary Sector Climate Action Partnership – He Waka Eke Noa. It’s our best opportunity to present an alternative emissions pricing framework to the Government; that is practical, fair and will incentivise farmers to make positive changes. Join discussions and provide your feedback on the partnership’s alternative emission pricing options. Register today for a webinar or an event near you, visit dairynz.co.nz/roadshow.
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