Government welcomes Climate Change Commission advice on agricultural pricing system

  • Hon Damien O'Connor
  • Hon James Shaw

The Government has welcomed advice from the Climate Change Commission assessing readiness in the agricultural sector for an emissions pricing system.

This is the second piece of advice from the Climate Change Commission on agricultural emissions pricing, following its report in May on potential assistance to farmers and growers participating in a pricing scheme.

“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 Commission is legislated to provide advice to the Government under the Climate Change Response Act (CCRA).

This report considers the He Waka Eke Noa partnership proposal provided to Ministers at the end of May, which recommended the introduction of a farm-level levy system from 2025 with separate 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.

Ministers are required to provide a public report on what an alternative pricing mechanism for agriculture could look like by the end of 2022.

“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)

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