The following was emailed to farmers on 24 August 2022.
Commitment to agriculture emissions pricing process
We’re aware there has been speculation about what’s happening with the agriculture emissions pricing system recommended by He Waka Eke Noa as an alternative to agriculture going into the Emissions Trading Scheme (ETS) and about the partnership itself.
This is understandable. Any policy process involving an entire sector and central government inevitably takes time, is complex and difficult. That can lead to concern about what’s happening and people are right to ask questions.
Our position
- The Government has been very clear it will price agricultural emissions, and it already has the legislation in place to bring us into the ETS next year.
- That’s why we’re fighting hard to get farmers the best outcomes through He Waka Eke Noa.
- We know the He Waka Eke Noa recommendations are not perfect, but our priority is to keep agriculture out of the ETS because that would be a far worse option for farmers and our sector.
- We need a system where the focus is more on incentives than on price. The ETS is a blunt instrument that tries to drive behaviour through pricing – after two years of analysis and discussion, we’re confident that won’t work.
- The ETS option would also mean we lose the split gas outcome we fought so hard for in our climate change legislation, and farmers would be at the mercy of a soaring carbon price with no control.
The partnership’s commitment
- As publicly restated this week, all of the 11 He Waka Eke Noa industry and Māori partners remain committed to the proposal and believe it’s the best option, and this process is continuing.
- Climate Change Minister James Shaw has also stated this week that the He Waka Eke Noa proposal “has not been scrapped” and that the recommended option is currently being “analysed and evaluated”.
- As is usual for any process like this with the Government, they are asking questions about what we have proposed and are testing it.
- Partners are working hard to provide answers and clarification to the Government while it considers the recommendations as part of a usual evaluation process. Overall, the discussions have been positive.
Useful links
- Listen to He Waka Eke Noa programme director Kelly Forster on Rural Roundup here.
- Read the Stuff article where Minister Shaw denies claims that He Waka Eke Noa will be scrapped.
- Read B+LNZ’s webpage outlining what has been recommended and why.
The recommendations were provided to Government on 31 May and the Government is expected to release its decision on final options later this year, which will be subject to public consultation. We’ll keep farmers updated.
We understand this uncertainty is concerning for farmers. As always, feel free to get in touch with us if you want to discuss anything.