Submission on Proposed Changes to New Zealand Emissions Trading Scheme Limit and Price Control Settings for Units 2022

Federated Farmers of New Zealand have a long history of engaging in climate policy in New Zealand and internationally. This includes engaging in both policies designed to mitigate greenhouse gas (GHG) emissions as well as policies designed to improve New Zealand’s ability to adapt to the impacts expected to occur as a result of climate change. 

Federated Farmers is committed to the New Zealand agricultural sector achieving a 2050 goal of becoming warming neutral, as is consistent with the 2015 Paris Agreement. Such a goal demands that short-lived flow GHG emissions (biogenic methane) are reduced, but not to net-zero, by 2050 and demands that long-lived stock GHG emissions (mainly nitrous oxide and carbon dioxide) are reduced to net zero by 2050. 

Federated Farmers recommends that the Government should: 

  1. Set split gas emissions budgets.
  2. Ensure its ETS settings, including the Cost Containment Reserve, do more to  reduce the risk of emissions leakage and negative impacts on rural communities.
  3. Recognise the impact of its ETS settings on driving mass afforestation of farmland.
  4. Apply its own rural proofing framework to this consultation document and all climate policy in New Zealand.
  5. Legislate for a climate dividend from the proceeds of ETS auctions to help offset cost of living increases faced by New Zealanders.
  6. Request the Climate Change Commission to advise what reduction in biogenic methane is required to ensure that the GHG has an impact on atmospheric temperature equivalent to zero long lived emissions (zero carbon equivalent); or if a biogenic methane emission reduction target(s) figure is required to be stated in the CCRA, then amend the biogenic target(s) so that it is based on a 0.3 percent reduction per year which equates to about 3 percent by 2030 and about 10 percent by 2050. 

To view the full submission click opposite

Macaulay Jones
Senior Policy Advisor
Climate Change, Trade, Forestry, Science & Innovation
[email protected]