What the ETS means for Māori

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Māori economy and resources

The Māori asset base, worth around $16.5 billion, is concentrated in primary production and processing and is dependent on the natural resources of land, water and fisheries. The primary production sectors are particularly vulnerable to the impacts of climate change. Māori are therefore likely to have a particular interest in how the emissions trading scheme affects these sectors, and in other climate change policies for these sectors.

How are Māori affected by climate change?

The reliance of Māori on the environment as both a spiritual and economic resource makes them more vulnerable and potentially less adaptable to climate change. Land presently owned by Māori is often of lower quality, which makes it more prone to invasion by subtropical grasses and erosion. Multiple land-ownership could hinder implementation of measures to adapt to climate change. This may increase the risk of reduced economic output from Māori land. On the other hand, forestry and alternative land use options will become more viable.

Impacts on the coastal environment are also of great importance to Māori culture and economy, but the impact of climate change on fisheries production is highly uncertain at the moment.

Treaty clause in legislation and ongoing consultation

The legislation for the emissions trading scheme contains a section that recognises the Treaty of Waitangi. This provision specifically sets out the ongoing decisions on which the Crown has an obligation to consult. This will include regulations covering:

  • pre-1990 forest land allocation (completed)
  • allocation of emission units to the fishing quota owners (completed)
  • allocation of emission units to agriculture (underway)
  • the point of obligation for agriculture (underway)
  • setting targets under the Act
  • reviews of the New Zealand Emissions Trading Scheme.

Forestry

Forestry in the emissions trading scheme

Forestry was the first sector included in the emissions trading scheme, from 1 January 2008.  This reflects the potential for forestry to act as a carbon ’sink’ to absorb greenhouse gas emissions and to help New Zealand meet international emissions obligations. 

Owners of eligible forests planted on previously unforested land after 1989 will be able to opt in to the emissions trading scheme to earn emission units. Owners of exotic forests planted before 1990 will be required to meet obligations for deforestation, but will also be eligible to receive an allocation of emission units. More details on forestry in the emissions trading scheme are available on the forestry page.

Afforestation partnerships

The Crown is exploring the potential for partnerships with private investors, for afforestation projects on suitable Crown land. Such partnerships could contribute to environmental objectives and earn tradable emission units for carbon stored by forests. Any agreements would not be preferential.

Review of Permanent Forest Sink Initiative

Before the emissions trading scheme was introduced, the Ministry of Agriculture and Forestry developed a number of schemes to provide incentives for afforestation on poor quality land subject to erosion. One such scheme is the Permanent Forest Sink Initiative which encourages tree planting by issuing assigned amount units for carbon sequestration. Now that the emissions trading scheme is in place for the forestry sector, a review of this scheme will be undertaken in 2010 with particular emphasis on the impacts on land owners. Work will also be done on whether the schedule rates for indigenous planting fairly reflect the growth rates and actual carbon storage of trees.

Agriculture

Agriculture in the emissions trading scheme

Agricultural emissions of methane and nitrous oxide account for approximately 48 per cent of New Zealand’s greenhouse gas emissions. From 1 January 2015, the emissions trading scheme will cover all the major agricultural sources of methane and nitrous oxide, such as methane from ruminant animals and nitrous oxide from urine, dung and nitrogen fertiliser applied to pasture.

Voluntary reporting of emissions will start on 1 January 2011 and reporting will be required from 1 January 2012. Participants in the scheme will initially be processors (eg, meat and dairy processors) rather than individual farmers.

More detail on agriculture in the emissions trading scheme can be found on the agriculture page.

Special advisory group on agriculture

A highly specialised technical group on agriculture in the emissions trading scheme has been established to address the potential administrative difficulties when introducing agriculture to the scheme. The group will advise on various issues relating to measuring and reporting, point of obligation, emission factors and the like. The group contains two Maori representatives. 

Fishing

The amended emissions trading scheme provides for an increased 90 per cent free allocation of emission units for fishing quota owners, taking into account the half obligation during the 1 July 2010 to 31 December 2012 transition period. This has been determined to be 700,000 units. This allocation will be made to quota holders on a tonnage basis.

Some iwi are yet to be allocated their fishing quota under the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 or were allocated quota after 24 September 2009. Their interest is held on the quota register by Te Ohu Kai Moana Trustee Limited. Te Ohu Kai Moana will receive the allocation of NZUs and are responsible for transferring it to these iwi.

More detail on fishing in the emissions trading scheme can be found on the fishing page.

Households

Māori households, along with other New Zealand households, will face increased prices for electricity, heating and transport fuels under the emissions trading scheme. More details of the effects of the emissions trading scheme on households can be found on the householders and individuals page.

Energy efficiency assistance

The Warm Up New Zealand: Heat Smart scheme was introduced on 1 July 2009 andaims to retrofit more than 180,000 New Zealand homes with insulation and clean heating over the next four years. As part of the agreement with the Māori Party on the emissions trading scheme, the Warm Up New Zealand scheme will be enhanced by an additional investment of $24 million targeted exclusively towards low-income families. This will enable 8000 additional homes to benefit from the scheme.

EECA has been requested to work closely with iwi to explore opportunities for their involvement in the programme. This will include, where practical, an increase in the number of Māori home insulation providers and installers, and further development of the existing work with community groups and iwi to provide targeted support to low-income households.

Find out more about the science behind climate change and physical impacts and adaptation.

Last updated: 18 June 2010