New Zealand excludes farming from carbon pricing plan

New Zealand confirmed that its agriculture sector, responsible for about 50 per cent of the nation’s greenhouse gas emissions, will be excluded from the national carbon pricing system, Bloomberg reported on Tuesday.

The government, responding to farmers’ protests, stated it will not impose costs on methane, carbon dioxide, and nitrous oxide emissions, which they argued could force some farmers off their land.

Agriculture Minister Todd McClay emphasised that, while meeting climate goals, the focus is on preserving local jobs and production.

Prime Minister Christopher Luxon’s administration, elected in October, plans to delay pricing on farm emissions until at least 2030 and lift a ban on offshore oil and gas exploration.

Methane, largely from livestock, made up 42 per cent of New Zealand’s total emissions in 2022. Farm products represent 44 per cent of the country’s exports.

The government will instead create a new group to address biogenic methane and invest in technologies such as methane vaccines and low-emission cattle.