Govt to create new Pastoral Sector Group to address biogenic methane emissions

Agriculture Minister Todd McClay emphasized that New Zealand farmers are among the world's most carbon-efficient food producers.

The Government will fulfill its election commitment to remove agriculture from the New Zealand Emissions Trading Scheme (NZ ETS) and will create a new Pastoral Sector Group to address biogenic methane emissions, announced Agriculture Minister Todd McClay and Climate Change Minister Simon Watts.

Agriculture Minister Todd McClay emphasized that New Zealand farmers are among the world's most carbon-efficient food producers.

"The Government is dedicated to meeting our climate change goals without compromising Kiwi farms. Exporting jobs and production to less carbon-efficient countries does not align with our objectives," McClay stated.

"We aim to develop practical tools and technologies for farmers to reduce emissions without decreasing production or exports. Legislation to amend the Climate Change Response Act 2002 (CCRA) will be introduced later this month to ensure agriculture is excluded from the NZ ETS."

The CCRA amendment will remove agriculture, animal processors, and fertilizer companies from the NZ ETS by January 1, 2025. Emissions from their non-farm activities will still be covered under the scheme.

He Waka Eke Noa Disbanded

McClay also announced the dissolution of the He Waka Eke Noa process, citing its failure under the previous government.

"Years of collaboration within the primary sector were undermined by Labour's rejection of key proposals, eroding consensus and confidence. To restore trust, we are formally disbanding He Waka Eke Noa," McClay said.

The Government will now work directly with levy bodies and sector organizations, including DairyNZ, Beef + Lamb New Zealand, and the Meat Industry Association. Terms of reference for the new Pastoral Sector Group will be developed in consultation with these groups.

Investing in SolutionsThe Government is increasing investment in research and development to find practical solutions for reducing on-farm emissions while maintaining production levels.

Climate Change Minister Simon Watts announced a $400 million commitment over the next four years to accelerate the commercialization of emission-reducing technologies.

"This includes an additional $50.5 million for the New Zealand Agricultural Greenhouse Gas Research Centre over the next five years to develop solutions like a methane vaccine and breeding lower-emissions cattle," Watts said.

Associate Minister of Agriculture Andrew Hoggard stressed the importance of balancing emissions reduction with the economic health of the agricultural sector.

"Agriculture is vital to our economy. Ensuring its profitability is crucial for our GDP, living standards, and public services," Hoggard noted.

Associate Minister of Agriculture Mark Patterson highlighted the need to meet consumer expectations and enhance New Zealand's sustainability credentials.

"By collaborating closely with the sector, we aim to future-proof our export growth and support the success of our dairy and sheep and beef farmers," Patterson said.

Agriculture Minister Todd McClay reiterated the coalition Government's commitment to investing in research and development to provide farmers with tools to reduce methane emissions without impacting productivity.