Tuesday, May 7, 2024

Two-phased emissions pricing approach to be considered

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FOLLOWING initial farmer feedback on two emissions pricing options for agriculture, along with a backstop of going into the ETS, a third approach is being put forward by He Waka Eke Noa (HWEN) partners as the roadshow explaining the options to farmers is set to begin.
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OPTIONS: Each of the pricing systems has its trade-offs and the roadshow is an opportunity to be better informed about them, He Waka Eke Noa programme director Kelly Forster says.

FOLLOWING initial farmer feedback on two emissions pricing options for agriculture, along with a backstop of going into the ETS, a third approach is being put forward by He Waka Eke Noa (HWEN) partners as the roadshow explaining the options to farmers is set to begin.

After feedback on a farm-level levy and a processor-level hybrid levy in December, the partners are now also putting forward a two-phased approach, starting with the processor-level hybrid and then transitioning to a farm-level system in the future.

More than 30 meetings and webinars are scheduled to be held in February for HWEN partners DairyNZ and Beef + Lamb New Zealand to explain the options to farmers, answer questions and listen to farmer feedback.

The move to the covid red traffic light system has led to changes to the initial schedule of meetings and farmers should check the DairyNZ or B+LNZ websites for where and when meetings in their area will be held, as well as details of online events.

The latest HWEN agricultural emissions pricing options consultation document, supporting technical reports and online feedback form, are now available on the ‘Your Say’ page of the website hewakaekenoa.nz/your-say

HWEN programme director Kelly Forster said the pricing system is part of a whole framework around managing agricultural greenhouse gas emissions.

“Paying a price isn’t the only thing that would encourage farmers to reduce emissions,” Forster said.

That’s why the options are based on putting money raised back into research and development, incentives to uptake technology, or actions on-farm that help reduce emissions.

“The Partnership has narrowed down pricing system options to two choices, and the backstop,” she said.

“Each option has its trade-offs, and this period of meetings, workshops and webinars is a chance for farmers and growers to learn about the choices and provide an opinion on their preference and feedback on how options may be improved.”

The pricing options’ aim is to recognise the efforts of individual farms as they reduce their emissions. 

Farms could also choose to combine forces as collectives to report and account for their emissions.

Feedback from the roadshow and online will form part of HWEN’s recommendations to the Ministers of Climate Change and Agriculture that is due by late April.

However, DairyNZ, B+LNZ and Deer Industry NZ have jointly written to ministers seeking an extension to the consultation timetable.

In an online newsletter late last week, Federated Farmers president Andrew Hoggard wrote directly to Prime Minister Jacinda Ardern to delay the April 30 deadline until the country is back in the orange alert level.

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