Federated Farmers Submission on the Emissions Trading Scheme Review 2015/16
Federated Farmers agrees that it is timely to review the ETS to assess its operation and effectiveness, especially in light of international developments that may result in a strengthened response to climate change and potentially higher carbon prices. Although biological emissions from agriculture make up almost half of New Zealand’s total emissions, this is unique among developed economies and currently the only way to significantly cut these emissions would be to reduce livestock numbers and limit production. Federated Farmers therefore agrees with the Government’s decision to exclude these emissions from the scope of this review.
Federated Farmers takes the issue of climate change and policy responses, like the ETS, seriously. Farmers, alongside other households and businesses, bear the burden of the ETS through carbon costs applied to transport fuels and electricity used. It is primarily with this in mind that Federated Farmers submits on this ‘priority issues’ stage of the review. We will also be submitting separately on the ‘other matters’ stage of the review and we remain committed to the development of an alternative policy framework for dealing with agricultural emissions