The Government has accepted the Climate Change Commission’s advice regarding the agricultural industry’s preparation for an emissions pricing system.
Following its report in May on possible help for farmers and growers taking part in a pricing scheme, the Climate Change Commission is now offering its second piece of advise on agricultural emissions pricing.
“We thank the Climate Change Commission for its latest report. The Commission’s independent, evidence-based advice will form an important part of the Government’s considerations on options for an effective agricultural pricing system,” Climate Change Minister James Shaw said.
The Climate Change Response Act (CCRA) gives the Commission legal authority to advise the government.
The He Waka Eke Noa partnership proposal, which was presented to Ministers at the end of May, called for the implementation of a farm-level levy system beginning in 2025 with distinct prices for short- and long-lived gases.
“The report considers the work done by the sector to prepare farmers for farm-level emissions pricing, and analyses how ready the sector is to implement such a system by 2025 – noting a significant amount of effort will be required to implement an effective system by the legislated deadline,” James Shaw said.
“We will consider the Commission’s advice alongside the He Waka Eke Noa partnership recommendations and further analysis and advice from officials, before developing proposals on what the system will look like,” Agriculture Minister Damien O’Connor said.
By the end of 2022, ministers must provide a public report outlining potential alternatives for agricultural pricing.
“Developing an effective system to price agricultural emissions is a key part of the Government’s Emissions Reduction Plan. Budget 2022 included significant investment to establish a new Centre for Climate Action on Agricultural Emissions, which is a partnership with business to accelerate product development of tools to help lower agricultural emissions,” Damien O’Connor said.
The Climate Change Commission report is available here: Agricultural Progress Assessment » Climate Change Commission (climatecommission.govt.nz)