The government has confirmed reports that it will make farmers pay a price for their emissions in 2025.
It’s part of a suite of proposals, now up for consultation, released this morning as part of the He Waka Eke Noa scheme.
Jacinda Ardern said the plan would put New Zealand on track to meet the 2030 methane reduction target. “This is an important step forward in New Zealand’s transition to a low emissions future and delivers on our promise to price agriculture emissions from 2025,” Ardern said.
“The proposal aims to give New Zealand farmers control over their farming system, providing the ability to reduce costs through revenue raised from the system being recycled back to farmers, which will fund further research, tools and technology and incentives to reduce emissions.”
The scheme’s expected to be signed off by cabinet early next year, but will first face consultation with the farming community. “The consultation provides an opportunity for people to provide feedback on the issues of sequestration, the levy setting process and transition support,” added Ardern.
The emissions set to face a levy include methane, along with nitrous oxide.
Fronting a press conference, flanked by the climate change minister James Shaw and agriculture minister Damien O’Connor, the prime minister called today’s announcement “pragmatic” and a “world first”.
Shaw said we must act now. “Around the world, countries grappling with the same issues are looking to New Zealand to take the lead,” he said. “Pricing emissions in a critical step… we know that there is a huge amount that farmers can do to cut emissions.”
He added: “Every other sector of our economy already pays for its emissions through the emissions trading scheme… We’ve been working on a system that will drive gross genuine emissions reductions on farms.”