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  • Agricultural Emissions Pricing

Agricultural emissions pricing

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The Government has released its formal response to the HWEN GHG pricing recommendations. FAR staff are working through the consultation document, highlighting any areas of interest or concern for our industry.

The Government has released its formal response to the HWEN GHG pricing recommendations and released a consultation document. 

The full consultation document can be found here. A shorter summary is also available online here.

He Waka Eke Noa have released a one page summary of how the ideas being taken out for consultation vary from the initial HWEN recommendations. You can read it here.

FAR staff are continuing to work through the consultation document, highlighting any areas of interest or concern for our industry. We will submit back through the HWEN group.

Full MPI media release below…

The Government has released its proposals to price agricultural greenhouse gas emissions in Aotearoa New Zealand from 2025. It’s proposing the introduction of a farm-level levy with separate prices for short and long-lived gases. The Government, He Waka Eke Noa’s industry and Māori partners, and the Climate Change Commission all acknowledge a farm-level levy is the best way to achieve reductions in agricultural emissions.

Consultation now open

The Government’s proposals are a response to recommendations from the He Waka Eke Noa partnership and advice from the Commission. The Government has agreed with most of the Partnership’s recommendations. Consultation is focused on the few areas where the Government’s preferred approach varies from the Partnership’s. The proposals are outlined in a discussion document. You can read the full document here. Alternatively, a summary is available here.

Feedback is being sought on:

  • a farm-level, split gas levy for pricing emissions
  • options for pricing synthetic nitrogen fertiliser emissions
  • an interim processor-level levy, as a transitional step if the farm-level pricing system cannot be implemented in time
  • recognition of sequestration.

Feedback is being sought from 11 October until 18 November 2022.

You can make a submission by visiting the Ministry for the Environment’s website.

Online meetings

Online meetings and hui are planned and are an opportunity to ask questions. A schedule will be available here.

Next steps

Your feedback will be considered, prior to the Climate Change and Agriculture Ministers publishing a report on the pricing system by the end of this year. Final proposals will go to Cabinet for approval in early 2023.

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