Emissions pricing consultation update

// Climate Change

Consultation on the agriculture emissions pricing options developed by the He Waka Eke Noa partnership is now open – and it’s important farmers have their say.


The key thing we want farmers to note is that B+LNZ, along with DairyNZ and Deer Industry New Zealand, have pushed hard for an extension to the consultation period in light of the disruption caused by the change to the COVID-19 traffic light settings. Federated Farmers has also asked for an extension. As soon as we’re able to, we’ll let farmers know the outcome of these discussions. 

We know this is a challenging and uncertain time for farmers but we need to keep going with the consultation, as we have a limited window in which to put forward pricing alternatives to the Government. Below is the information that we emailed to farmers on Monday – including links to the documents that have been released.  

Consultation information

  • At this stage, the consultation will run from 31 January to 1 March.
  • However, B+LNZ, DairyNZ and Deer Industry New Zealand have jointly written to Ministers seeking an extension of the consultation period. Federated Farmers has also requested an extension. 
  • The extension is being sought because of the expected disruption over the next couple of months caused by the country being in the red traffic light level, and by the spread of the Omicron variant of COVID-19.   
  • We’ll keep you updated on any progress we make on getting an extension. 
  • More generally, we’re actively monitoring the situation as it evolves. 

What are we trying to achieve?

  • B+LNZ’s objective is to come up with a better system for agriculture than the Emissions Trading Scheme (ETS), working with other sector groups. Our key priorities are:
    • de-linking the methane price from the carbon price, to reflect the different effects of the gases on warming and the separate greenhouse gas targets in the Climate Change Response Act
    • getting more recognition of the sequestration happening on farms than under the ETS  
    • the ability for farmers to be recognised for progress on reducing emissions, and
    • money raised being invested back to agricultural research or on-farm changes that reduce emissions.
  • While they’re not perfect, we believe the alternative pricing options have advantages over the ETS for sheep, beef and dairy farmers and they can be improved over time. Unlike the ETS, they provide farmers with a lot more control and options to reduce the costs they face over time, either through getting on-farm actions recognised or through better recognition of sequestration.
  • Note that B+LNZ does not agree with the methane targets in the Climate Change Response Act (currently to reduce methane emissions by 10 percent by 2030 and by 24-47 percent by 2050) based on the science of methane’s impact on warming.  
  • We’ll therefore, in parallel, work with DairyNZ and Federated Farmers to get these targets reviewed using the latest science – this is due to happen in 2024. 
  • The best way to find out more about the options is by attending a roadshow event. We’re working hard to ensure in-person events can be run safely but if you’re concerned you can register for an online webinar – we’ve added in extra sessions. 

How to provide feedback

  • The partnership has developed a range of questions they’re seeking feedback on. This is a combination of specific questions about the options and more open-ended questions about what sorts of things farmers like or dislike about the options.
  • Farmers can either provide feedback at a roadshow event or by filling in a form online. 
  • All feedback collected by the partners will be collated and analysed, and in B+LNZ’s case used to support our position at the He Waka Eke Noa partnership negotiating table. 
  • The partnership is intending to release a summary report of the feedback. 

Links to key information