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Agriculture in the Emissions Trading Scheme

How is agriculture affected by the ETS?

Agriculture will have obligations to report their activities and surrender New Zealand Units (NZUs) under the Emissions Trading Scheme (ETS). They will receive allocations of NZUs to help offset the cost of this.

Like all New Zealanders, they’re likely to notice a small increase in energy prices due to the ETS. For more information on these effects and how to reduce your energy costs, please see What does the ETS mean for me?

Obligations

Please see Agriculture’s obligations: Reporting emissions and surrendering NZUs for more information.

Allocations

Please see Agriculture Allocations: NZUs for Agriculture for more information.

Agriculture and climate change

New Zealand’s biologically-based economy relies on a temperate and stable climate for production. Action on climate change – here and internationally – is crucial for New Zealand’s long-term economic, social and environmental wellbeing.

The agriculture sector is the largest single source of greenhouse gas emissions in New Zealand, making up approximately 48 per cent of our total emissions. Emissions in the sector are continuing to grow.

By placing a price on carbon, the ETS provides an incentive to reduce the level of emissions for every unit of agricultural output. Emissions reductions can be made by:

    • improvements in farming efficiency
    • increased tree planting
    • more efficient use of nitrogen fertiliser
    • increased use of nitrification inhibitors
    • more effective management of animal waste, and
    • the use of other mitigation technology as it is developed.

     

    Last updated: 15 July 2010

Related links

  • Agriculture in the NZ ETS (Ministry of Agriculture and Forestry)
  • FAQs – Agriculture and the ETS (Ministry of Agriculture and Forestry)
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