Report on the Technical Advisory Group for the Agriculture Component of the NZETS
Climate Change Leadership Forum report number: 4
Briefing for the Climate Change Leadership Forum
Prepared by Ministry of Agriculture and Forestry
Date: 1 August 2008
Summary:
The Agriculture Technical Advisory Group met on 30 July 2008 and considered an early draft chapter on the Point of Obligation (PoO) for the final report.The primary objective of the meeting was for the agTAG to make decisions on outstanding design questions with a view to moving onto allocation. Decisions included:
- The number and characteristics of reporting tiers for a farm level PoO
- The design of a hybrid point of obligation – viz the new farmer opt-in provisions in the Bill
- Whether a farm level obligation should be with the landowner or the stockowner
- How nitrogen fertilisers should be treated under a farm level PoO
- The form and characteristics of emission factors for a processor PoO
The framework content for the Ag TAG’s PoO chapter has been agreed and decisions from the meeting will be reflected in the draft chapter so that it can be shared with the Climate Change Peak Group for its next meeting. Ongoing refinement of the analysis and discussion will continue until the chapter is finalised. There are also two significant issues yet to be resolved but work on these will continue alongside work on allocation for consideration at a later date. These are:
- Whether the landowner or the stockowner should be the point of obligation. No obvious winner has emerged to date
- Empirical analysis of the potential benefits of a farm level PoO over a processor level PoO. Modelling work is ongoing
The Ag TAG established a subgroup to progress work on allocation methodologies between now and the next meeting. The subgroup will identify a range of practical allocation methodologies, undertake an empirical analysis of the options, and assess these against a range of criteria. The agTAG will consider the outcome of this work at a two-day meeting in late August.
