Concern over changes to agricultural emissions pricing proposal
Andrew Morrison
Aspects of the Government’s recently released changes to the agricultural emissions pricing proposal are very concerning, particularly those related to sequestration.
At the time of writing, Beef + Lamb New Zealand is picking through the proposed changes with a fine-tooth comb, but we will not accept a system that disproportionately puts our farmers and communities at risk.
Just as a reminder, we would rather that farmers didn’t have to pay a price for their emissions, but we don’t have a choice. We either work to settle on a pricing system that is fair for everyone and achieves the desired outcomes or be included in the Emissions Trading Scheme. The latter is an option we remain strongly opposed to.
One of the changes of greatest concern to sheep and beef farmers is around sequestration. The Government has reduced the categories of sequestration recognised to indigenous vegetation where stock is excluded- and then it’s only recognising additionality- and riparian strips. The Government has also proposed changes to the process of getting these categories recognised.
To put the importance of this into context, over 1.4 million hectares of native forest sits on sheep and beef farms throughout the country absorbing carbon.
Farmers have preserved and enhanced
Chairman, Beef + Lamb New Zealand
this bush, so it is only fair that this sequestration is recognised in any framework. If farmers are required to pay for their emissions, they should also be given credit for the genuine sequestration that is happening on their farms.
Other changes we will be looking at closely include changes to the emissions price setting process and criteria and the linking of the nitrous oxide price to the ETS price.
While I want to stress that we all need to play our part in addressing climate change, the sheep and beef sector should not be an industry scapegoat.
Modelling has already shown that sheep and beef farmers will be the most heavily affected by a price on agricultural emissions and the proposed changes to sequestration would exacerbate this further. While there is some mention in the document about ways in which equity would be regained, there are no details about how this will be done.
Compared to other countries, New Zealand’s sheep and beef sector is very emissions efficient and the carbon footprint of sheep and beef production is estimated to be around half the average figure globally.
Surely the Government should be working to protect our sector and economy while encouraging continued emissions reductions.
Consultation on the Government’s proposals began on 11 October and will run through until 18 November.
The Government will be holding webinars during the consultation period to explain the proposal and farmers will be able to make a submission.
We are strongly encouraging all farmers to make a submission and put pressure on the Government to ensure any pricing scheme is fair and equitable. B+LNZ will be working with other industry groups to help farmers with the submission process, while making our own submissions.
B+LNZ will be holding face-to-face meetings around the country to share our views on the proposal, answer any questions and gather feedback. This is a critical issue for our industry and I urge all farmers to engage in the process.