New Zealand Prime Minister Jacinda Ardern speaks during a press conference in Sydney, Australia, July 8, 2022. (RICK RYCROFT / AP)
WELLINGTON – The New Zealand government has worked alongside farming leaders to adapt the proposed system for reducing agricultural emissions, which will protect future export growth, Prime Minister Jacinda Ardern said on Wednesday.
A report released on Wednesday outlined several changes to the proposed emissions pricing system that will give greater certainty for farmers and better recognize on-farm sequestration.
The goal is to back farmers to grow their exports, reduce emissions, and maintain agricultural sectors' international competitive edge into the future, Prime Minister Jacinda Ardern said
"After listening to farmers and growers through our recent consultation, and engaging over recent months with industry leaders, today we have taken the next steps in establishing a proposed farm-level emissions reduction system as an alternative to the ETS (Emissions Trading Scheme) backstop," Ardern said.
The goal is to back farmers to grow their exports, reduce emissions, and maintain agricultural sectors' international competitive edge into the future, she said.
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Ardern cited Tesco, the biggest buyer of New Zealand products in Britain, and Fonterra, a global dairy co-operative, as examples to show the new standards for all products to be environmentally accredited and reduce emissions across the supply chain.
"If we don't establish a credible plan to reduce agriculture emissions, the future of our exports are at stake," she said.
Agriculture Minister Damien O'Connor said the government is committed to a five-year price pathway for levy rates from 2025, giving farmers the price certainty they have asked for out to 2030.
The government is also urgently working with the sector to develop a process to recognize on-farm carbon sequestration, which is a top priority for farmers. Sequestration needs to be recognized in a way that is fair, cost-effective, and scientifically robust, O'Connor said.
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Final decisions on agricultural emissions pricing will be made by the cabinet in early 2023 with an aim to introduce legislation by the middle of the year.