Beef + Lamb New Zealand has released updated research showing that international jurisdictions continue to focus on incentivising and subsidising farmers to achieve climate change outcomes, resulting in a widening competitive gap for New Zealand farmers, who are expected to adjust within a largely unsubsidised policy framework.
The research built on a 2024 report and analysed developments in agricultural greenhouse gas reduction targets, strategies and policies in a range of international jurisdictions since then.
It shows that since the previous report, some jurisdictions have pulled back from climate change commitments, and most still focus on directing large-scale public funding to incentivising and subsidising farmers to achieve climate change outcomes.
Chair Kate Acland says this growing subsidy and incentive trend has major implications for New Zealand’s pastoral exports wishing to compete in the same markets.
“B+LNZ is not advocating for subsidies for our sector – we’re asking for more creative approaches such as exploring ways to incentivise reductions through a focus on efficiency gains and options such as emissions reduction credits for technology uptake.
“We believe reductions in emissions should be driven by customers and the market, and New Zealand needs to find a way to make a feature of achieving emissions reductions without subsidies in a world where billions in public spending have become the dominant signal of agricultural climate ambition.”
Acland notes there have been some positive developments in New Zealand, with Government announcements around not pricing agricultural emissions, revised methane reduction targets and limits on the amount of carbon forestry that can be entered into the ETS.
“These have helped, but the competitive gap remains a concern for our farmers and exporters.
“Internationally, agriculture continues to be addressed primarily through economy-wide targets and enabling policy, with most governments relying on public funding, incentives and land-use integration rather than introducing new sectoral emissions obligations.”
Australia, for example, has finalised its Agriculture and Land Sector Plan, which does not have specific targets for reductions in agricultural emissions. Australia is not at this stage aiming to reduce gross reductions from agriculture until after 2040.
She says the report’s findings have a range of implications for New Zealand’s approach to managing agricultural emissions.
“We’d like to see an integrated approach to climate, land and environmental management policies.
“While there has been progress locally on methane targets and emissions pricing, B+LNZ will continue to advocate for further progress on issues like taking a split-gas approach to international targets to recognise the different role methane plays in warming than emissions from fossil fuels.”
Acland says B+LNZ is actively advocating on this issue.
“We’ve continued to build the global coalition calling on parties to the UN Framework Convention on Climate Change (UNFCCC) to adopt a split-gas approach to greenhouse gas reporting under the Paris Agreement.
“Today we’re announcing that 41 organisations across 16 countries have now signed the joint statement. The expanding coalition reflects growing international recognition that biogenic methane must be treated differently to long-lived gases such as carbon dioxide.
“We’re particularly pleased to welcome the Global Farm Platform, as an international academic umbrella organisation, and World Animal Protection Africa, as an animal welfare NGO. Their support reinforces that a split-gas approach is a matter of sound science and good policy, not a narrow industry position."
The eight additional organisations are the Global Farm Platform, World Animal Protection Africa, Sociedad Rural Argentina, Carni Sostenibili, the National Alliance of Agricultural Cooperatives in Uganda, the South African Feedlot Association, the Red Meat Industry of South Africa, and NFU Cymru.
ENDS
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