Farmers will face a price on their biological greenhouse gas emissions (methane, nitrousoxide and CO2 from N fertiliser) from 2025.
This will either be via the ETS, or He Waka Eke Noa. Government will ultimately decide and will need to be satisfied that the sector is ready and the option/s presented by He Waka Eke Noa are credible.
He Waka Eke Noa are currently consulting with farmers on options for a pricing mechanism. These are a farm-level system where emissions are calculated at the farm level and sequestration is netted off, or the processor-hybrid level where all product processed faces an emissions charge, and farmers have the ability to apply for a rebate via either an Emissions Management Contract or a Sequestration Management Contract.
Download the summary report for more information.
Recently Erica also spoke into further detail on the topic with ANZ, watch the full webinar here: https://youtu.be/kPXJJrvaAZU