Tony Orman
The government’s Emissions Trading Scheme (ETS) is seriously flawed, said Dairy NZ’s Nick Tait to a Beef+LambNZ public meeting attended by some 70 farmers and held in Blenheim on 17 February.
Initial farmer feedback strongly indicated sectors do not recommend farming entering the ETS.
The ETS failed on three fundamental matters, he said.
“One; it doesn’t reward on-farm emission reductions, two; it doesn’t recognise on-farm mitigations, and thirdly; it doesn’t recognise methane and a split gas approach,” he said. “Plus it doesn’t reinvest the revenue back into agriculture.”
The ETS would have a much greater impact on farm profitability than Beef+LambNZ’s proposed alternative “He Waka Eke Noa” (HWEN).
Under the ETS’s government-controlled carbon market concept farmers would have no control, whereas under HWEN farmers will have a say. “Importantly, under HWEN money will not go into government coffers to fund roads or similar avenues.”
Earlier, Sam McIvor, CEO Beef+LambNZ had mentioned that under the ETS, money would go into government coffers. “At the end of the day, we’re talking about money,” he said. “Another aspect is that with ETS, you - the farmer - will have no say.”
Now is the Moment
Kate Acland of Mt Somers station and Beef+LambNZ board member, described New Zealand farmers as the most efficient in terms of low carbon footprint and efficiency.
HWEN is about creating an alternative and ETS legislation had been passed by governments.
“It only needs to be turned on by the current government. Now is the opportunity to design a better alternative,” she said, emphasising “Doing nothing is not an option.”
Sam McIvor described the ETS as “a government-controlled, market-approach based on supply and demand.”
“Nevertheless, my feeling is climate change will be the biggest issue on the international agenda. The reality is that in export markets consumers are becoming increasingly concerned about global warming.”
Prices of products on shop shelves is naturally important to consumers, with climate change rapidly climbing as a main consumer concern.
Kate Acland said it was a matter of trying to position New Zealand’s product on the world stage. Nick Tait said, in terms of carbon efficiency, New Zealand dairying sheep and beef were world leaders.
“But it’s vitally important we strive to stay at the top rather than rest on our laurels,” he added. “The reality is we are exporting to niche markets and discerning consumers are increasingly asking questions.”
Under Five Metres
There was a significant amount of vegetation on every farm that is not recognised under the ETS.
Under the ETS, vegetation under five metres in height is not taken into account in calculations. Kate Acland pointed out that a large number of native trees will not qualify under the ETS. “We have a large number of natives that will never reach 5 metres height. For instance, mature manuka will be only 3 metres or so,” she said.
From the audience, Charles Waddy of Seddon pointed out that reducing stock numbers to meet targets was not a practical option. If sheep numbers were reduced in Marlborough, some 400 families would lose income. Richard Dawkins of Waihopai said thousands of hectares of farm land had gone into pines under government carbon-trading incentives, thus reducing stock numbers.
“Are we going to be credited for that?” he asked.
Sam McIvor said the conversion of farms to pines was significant and should come into calculations.
Charles Waddy said a lot of carbon dioxide went into the sea via rivers and was sequestered forever.
In the ocean, carbon sequestration, a fancy word for the process by which carbon dioxide is removed from the atmosphere, is achieved through various chemical and biological processes. Plankton at the ocean surface use photosynthesis to convert carbon dioxide into sugars in the same way trees and land plants do on land. Nick Tait acknowledged the ocean factor was a very valid point. In a geologically young country, New Zealand had high carbon dioxide levels.
Farmers Get Involved
Kate Acland stressed that it was important for farmers to acquaint themselves with aspects of the ETS versus HWEN and to present views.
“We have to provide a credible alternative. Talk to your neighbours and encourage them to get involved in the debate and provide Beef+Lamb NZ with feedback. The message is - ‘get involved’.”
Extension Sought
Farming groups have requested government to grant at least a month’s extension to the adoption of a new emissions pricing option. Beef+LambNZ has also asked government for an extension beyond government’s May 31 deadline.
Beef+LambNZ chairman Andrew Morrison said for farmers to do nothing was not an option.
If the farming sector did not move on the ETS and the alternatives, government would put farming into the ETS. However, government had agreed to listen to any credible alternatives.
