Agriculture’s obligations: Reporting emissions and surrendering NZUs
From 2015, the agriculture sector will face costs from their non-carbon dixoide (non-CO2) agricultural emissions under the Emissions trading Scheme (ETS).
Who needs to be involved?
With some exceptions, participants for agriculture in the scheme will initially be meat and dairy processors, fertiliser manufacturers and importers, egg producers and live animal exporters. Participants will face an obligation under the scheme to surrender New Zealand Units (NZUs) for emissions from agricultural activities.
The Government has the flexibility to move the point of obligation to the farm level in the future, subject to the successful resolution of some practical issues, including the ability to verify emissions returns and to enforce compliance with the scheme.
What will the ETS cover?
The term 'agriculture emissions' refers to the non-CO2 greenhouse gas emissions from agricultural production. These consist of methane from livestock (approximately two-thirds), and nitrous oxide from animal excrement and the use of nitrogen fertiliser (the remaining one-third).
The ETS 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.
When will it happen?
Full obligations for agricultural emissions in the ETS are set to begin on 1 January 2015 and there will be no other price-based measures in the meantime. However, agriculture sector participants in the scheme will be required to begin monitoring their emissions before 2015 to ensure the relevant monitoring and reporting systems are working properly.
Participants can voluntarily report emissions from 1 January 2011 and will be required to report emissions from 1 January 2012.
The Government will work with the agriculture sector to identify opportunities for reducing emissions before 2015.
Last updated: 16 December 2011
