Climate Change Policy
Climate change policy is under development at both the domestic and international level. International climate change policy, which is being determined through inter-governmental negotiations, sets the context and boundaries that must be reflected in our domestic climate change policy.
The Kyoto Protocol
New Zealand is a signatory to the United Nations Framework Convention on Climate Change (UNFCCC), which sets out broad principles for change and a process through which governments can meet regularly. New Zealand is also a signatory to the Kyoto Protocol (a treaty under the UNFCCC) that sets legally-binding targets for the greenhouse gas emissions of developed countries for the period 2008 to 2012 (the first commitment period). Not all countries that are members of the UNFCCC have signed up to the Kyoto Protocol.
Current Negotiations
Negotiations are currently underway for a new international agreement on climate change. The negotiations are occurring on two tracks, with one set of negotiations occurring under the UNFCCC and another set under the Kyoto Protocol. New Zealand, as a member of both agreements, is participating in both sets of negotiations. DairyNZ, alongside other pastoral sector organisations, has been engaged with the officials leading this negotiation for New Zealand, working to ensure that the profile of agriculture is raised in the negotiations, that efficient agriculture producers such as New Zealand get a fair deal and the role of agriculture in keeping the world’s population fed is recognised.
Emissions Trading Scheme (ETS)
Domestically, Parliament has now passed legislation to amend New Zealand’s Emissions Trading Scheme. Under the revised legislation, farmers will become liable for their on-farm greenhouse gas emissions of methane and nitrous oxide from 1 January 2015. However, dairy processors will become liable for their emissions of greenhouse gases (carbon dioxide) starting on 1 July 2010. Farmers will receive allocations of New Zealand units from the Government to reduce the costs they have to bear for their on-farm greenhouse gas emissions under the Emissions Trading Scheme, although this allocation will gradually be reduced over time. At this stage, it does not look as though dairy processors will receive allocations of any New Zealand units.
The revised legislation outlines at a high level how on-farm greenhouse gas emissions will be calculated, and how the allocations of New Zealand units for each farm will be determined. However the detail of how this will work in practice remains to be developed through regulations.
DairyNZ has been heavily engaged with the Select Committee processes that are part of the legislative process, and with officials who are responsible for developing and implementing the legislation. DairyNZ will continue to be engaged as the regulations are developed, advocating on behalf of New Zealand’s dairy farmers.
DairyNZ submissions are included below, but the key principles that DairyNZ has been advocating are:
- Agriculture should not be included as part of an Emissions Trading Scheme until there are effective mitigation options available;
- Recognition that there are no practical, cost-effective mitigation technologies currently available for agricultural greenhouse gas emissions. Research into developing such mitigation technologies is crucial, and the Government should put additional research funds into this area;
- The industry is already making significant research and development investments into understanding its carbon footprint, and looking at the best ways to mitigate its greenhouse gas emissions within the context of profitable, sustainable and competitive dairy farming;
- If agriculture is to be part of an ETS, it should have an on-farm point of obligation which will enable farmers to be rewarded for reducing their emissions of greenhouse gases; and
- Agricultural emissions, if included in an ETS, should be treated on an out-put intensity basis, where it is the level of greenhouse gas emissions per unit that is measured, rather than total emissions.
| If you have a question for DairyNZ regarding climate change policy and the dairy industry, you can email climatechange@dairynz.co.nz. |
Related Documents
- Initial submission to the Emissions Trading Scheme Review Select Committee (February 2009)
View PDF (36kb) - Supplementary submission to the Emissions Trading Scheme Review Select Committee (May 2009) View PDF (107kb)
- Submission to the Finance and Expenditure Select Committee on the Climate Change Response (Moderated Emissions Trading) Amendment Bill (October 2009) View PDF (92kb)
- 2020 Emissions Target Submission View PDF (91kb)
- Inside Dairy December 09 article: Pastoral leaders group on climate change View PDF (96kb)
Related Links:
New Zealand Climate Change Policy
- www.climatechange.govt.nz: For information about New Zealand’s emissions, emissions trading, projected impacts, international negotiations and obligations and New Zealand’s overall approach to climate change.
- The Ministry for the Environment is the overall lead agency on climate change policy.
- The Ministry of Agriculture and Forestry has responsibility for climate change policy for agriculture and forestry.
- New Zealand Parliament website with all submissions to the Finance and Expenditure Select Committee on the Climate Change Response (Moderated Emissions Trading) Amendment Bill.
