Nov 17, 2022
As Deer Industry NZ (DINZ) prepares a submission on the government’s new farm-level pricing scheme for agricultural greenhouse gas (GHG) emissions deer farmers' voices are also needed.
“There are opportunities to work with other sectors and with government to get a system that will ensure that the inevitable cost of GHG pricing is manageable, that we ensure that those with no recourse to sequestration nor mitigations are provided some relief and that decisions about the farming industry are taken by people with experience on and knowledge of the sector,” says DINZ chair Mandy Bell.
DINZ is working on “a unified partners view to find the system that recognises the importance of maintaining the viability between sectors,” explains DINZ chief executive Innes Moffat. A combined HWEN position would be helpful to government, “and make our arguments stronger. But our position places the interests of deer farmers first.”
All parties, including DINZ, are making independent submissions.
DINZ’ main points are:
| DINZ position | |
|
Sequestration |
Farmers must be recognised for their on-farm sequestration. |
|
Pricing setting process and criteria |
The agricultural sector’s interest must be represented when considering prices for greenhouse gases (GHG). The availability of effective mitigations, impact on viability, communities and production must be considered. |
|
Linking the nitrous oxide price to the carbon dioxide price |
The price of biological GHG should not be linked to the NZU price set by the Emissions Trading Scheme. |
|
Methane price |
The price of methane must be set at a level that only collects sufficient funds to pay for R&D, incentivises adoption of mitigations and must be capped for the early years of the pricing regime. |
|
Levy revenue |
Levies collected by the scheme must only be used to assist agriculture to move to lower emissions systems. |
|
New processor levy backstop |
We would prefer to go to the farm-level pricing system immediately and not invest in an interim processor level option. |
“For most properties, some trees will be a way of generating some revenue in the medium-term to offset their levy, however we also recognise the significant cost in some areas of planting,” Moffat says.
It is highly unlikely that government will force agriculture straight into the Emissions Trading Scheme, he believes.
“The more complex a farm level accounting scheme is, the more likely it is that government will introduce a processor levy in the interim.”
It is really important that deer farmers’ voices are heard in the consultation.
For those who haven’t already submitted on the government’s agricultural emissions pricing proposal, there is still one day left. DINZ has prepared information and a template to help you with this task. Click here to download a prewritten submission template. You will be able to change any information in this before you email to Ministry for the Environment - agemissionspricing@mfe.govt.nz
