Report on the Technical Advisory Group for the Agriculture Component of the NZETS

Climate Change Leadership Forum report number: 7
Briefing for the Climate Change Leadership Forum
Prepared by the Ministry of Agriculture and Forestry
Date: 3 April 2008

Executive Summary:

  1. MAF will provide advice to Government at the end of 2008 on possible design features for bringing the agriculture sector into the New Zealand Emissions Trading Scheme (NZETS).  The agriculture Technical Advisory Group (TAG) was established to support MAF's policy development process and act as the principal tool for engaging agriculture sector experts on possible technical design features of the agriculture component of the NZETS.
  2. The TAG is comprised of about 13 technical and policy experts from the industry, government and the science system.  Robert Anderson, Pro-Vice Chancellor of the College of Sciences at Massey University, chairs the TAG.
  3. A special secretariat supports the TAG, providing analytical and administrative support.  Ultimately, the secretariat will prepare, with input and guidance from the TAG, a report to MAF in October on design options and their pros and cons.  The TAG may or may not decide to make specific recommendations to government.  Key areas of consideration are the point of obligation, allocation of NZUs, and the incorporation of mitigation behaviour.  The final report will be publicly available and be used to inform MAF's advice to government.
  4. The next meeting of the TAG is scheduled for 22 April when it will consider a number of detailed models for the point of obligation.  These models will describe information requirements, flows, and the likely signals and incentives created at the farm level.
  5. Once options for the point of obligation have been fully developed and appropriately tested, the TAG will begin detailed consideration of options for allocation methodology (eg. objectives for allocation and assessment of options).