Flawed ETS settings hurt NZ beef sector, stud bull breeders struggle
New Zealand's Emissions Trading Scheme settings are flawed, and that's hurting stud bull breeders and the wider beef sector.
According to a 2023 report commissioned by Beef + Lamb NZ, New Zealand is the only country, aside from Kazakhstan, to allow 100% offsetting of carbon emissions by forestry within the
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Scoop
13 hours ago
- Scoop
Law Change Could Save Farmers And Taxpayers Millions
Federated Farmers is throwing its support behind a new Member's Bill that could bring much-needed clarity to New Zealand's climate change laws - and save millions in legal costs. National MP Joseph Mooney's Climate Change Response (Restriction on Civil Proceedings) Amendment Bill aims to confirm a common-sense principle: if a person or business is complying with national climate change laws, they can't be sued for causing climate-related damage. "It sounds very obvious, but that's not how the law appears to be working right now," Federated Farmers climate change spokesperson Wayne Langford says. "It's crazy that companies like Fonterra and Dairy Holdings, who are fully meeting their legal climate obligations right now, can still be dragged into court and sued for allegedly causing harm through emissions. "We fully support Joseph Mooney's Bill, which will restore some much-needed common sense and save farmers, food processors and taxpayers millions of dollars in court costs." Climate activist Mike Smith is taking seven major New Zealand companies, including Fonterra and Dairy Holdings, to court over their greenhouse gas emissions. He says the emissions are harming Māori land and culture, and is claiming public nuisance, negligence, and breach of a duty to stop contributing to climate change. The High Court threw out two of the claims but allowed the third to proceed. After appeals from both sides, the Supreme Court has now reinstated all three claims, allowing the case to go to trial, and the matter is now back in front of the High Court. Federated Farmers says the case sets a dangerous precedent. "Every New Zealander contributes to climate change in some way," Langford says. "When you turn on a light switch, cook dinner, drive your car - even an EV - you're using energy and consuming goods. All of that has emissions behind it." In most cases, those emissions come from companies operating within New Zealand's legal framework - following rules set out under the Emissions Trading Scheme (ETS), reporting requirements, and other regulatory obligations. "So, it's silly stuff to then try and sue those law-abiding companies," Langford says. He points out that long-lived carbon dioxide emissions are already captured under the ETS, and the Government is actively investing in research and tools to help farmers reduce their short-lived methane emissions. "If these companies are following the rules, there has to be some certainty and protection in that, or the legal risk becomes unmanageable." Mooney's Bill would provide that certainty by spelling out in law that private legal action cannot be taken against individuals or companies for their greenhouse gas emissions, provided they're complying with climate laws already set by Parliament. "Rather than force the courts to debate and decide what the law in New Zealand is, this Bill would allow Parliament to exert its authority and define the law," Langford says. He says it's no different from how things work in other areas of law. "If a property developer gets resource consent to build a high-rise apartment, the neighbours can't turn around and sue them for the shade or noise. "That's because we recognise the developer has done everything required under the law to get permission. "Why should climate law be treated any differently?" Smith's lawsuit covers major electricity generators, petrol retailers, dairy farming and dairy processing. Langford warns that if Smith's case is successful, it would see a host of vital industries face major cost and risk. The case could open the floodgates to further lawsuits against other industries that also produce emissions, even if they're fully compliant with New Zealand's climate regulations. "In practice, the only way for those industries to avoid legal risk would be to stop emitting entirely - meaning they'd effectively have to shut down overnight." He says that would be economically disastrous and would leave the Government scrambling to urgently rewrite the law to protect the economy. "If the case is successful, Parliament will simply be forced to urgently change the law. Let's not wait for that crisis. Parliament should clarify the law now, before this goes any further." Federated Farmers is urging the Government to adopt Mooney's Bill as a Government Bill, which would significantly speed up its passage through Parliament. "Rather than wait for Fonterra and Dairy Holdings to go through a lengthy and expensive High Court process - something that will also cost taxpayers dearly - the Government should step in now and provide certainty. "We need to focus our time, energy and taxpayer dollars on solutions that actually reduce emissions, not on endless litigation against companies doing everything the law requires."
Scoop
a day ago
- Scoop
How Jacinda Ardern's ‘Groundbreaking' Climate Law Has Become ‘A Shell'
Article – RNZ When New Zealand passed the Zero Carbon Act in 2019, it was hailed as a world-first – a law with cross-party support that would enshrine climate ambition in legislation. Paired with the country's first Emissions Reduction Plan and billions of dollars in ring-fenced climate funding, it represented then-Prime Minister Jacinda Ardern's promise to tackle her generation's 'nuclear-free moment' head on. Six years on, analysis suggests the law has been hollowed out to little more than a husk. While its legal targets remain, nearly every policy designed to meet them has been scrapped, most without replacement. Data collated by RNZ shows that since it came to power in 2023, the coalition government has repealed, defunded, or delayed dozens of climate initiatives – from electric bus funds to agricultural emissions pricing to subsidies for solar and wind. Officials have been ordered to stop planning for lower car use. Climate scientists have lost their jobs. And this month, a ban on exploration for oil and gas was repealed. 'The Zero Carbon Act is a shell,' said 350 Aotearoa strategic adviser Adam Currie. 'It was supposed to be our lifeboat, but this government is deliberately drilling holes in it.' Just a handful of the original policies remain. Instead, the coalition's climate plan leans heavily on a strengthened Emissions Trading Scheme, alongside pledges to double renewable energy, invest in carbon capture, and reduce agricultural emissions through new technology. Prime Minister Christopher Luxon has insisted the country is 'doing everything we can' to meet its targets, by focusing on the sectors that produce the greatest emissions. But the Climate Change Commission's 2025 monitoring report is now warning the coalition's plan won't be enough. New Zealand is likely to meet its first emissions budget (to 2025), the commission's July report said. But for the second and third emissions budgets, covering the decade to 2035, the commission finds current policies are unlikely to deliver. 'In many sectors, there is no clear policy pathway to cut emissions at the pace and scale required,' the report said, highlighting agriculture, transport, and energy as risk areas. 'More work is needed – and soon – to lay the groundwork for emissions cuts after 2030.' The commission was particularly concerned about the lack of plans for gross emissions reductions – actually cutting fossil fuel use – as opposed to relying on forestry to offset emissions. It noted that in the third budget period, 46 percent of planned reductions come from forest removals alone. 'There is risk in relying on a single sector for a large proportion of reductions,' it said. Delaying real action risked forcing more costly and disruptive changes later, and increased the burden on future generations, the commission said. The government will formally respond to the commission in October. But Minister for Climate Change Simon Watts said the amendments it had made to the first emissions reduction plan were allowed under the law. 'As a government we are prioritising policies that deliver cost-effective climate action for New Zealand,' Watts said. 'We removed actions that weren't expected to directly reduce emissions and, based on our current projections, we're still on track to meet our first emissions budget.' At a time when many governments are backing away from climate goals, National has said – despite pressure from its coalition partners – it will not repeal the Zero Carbon Act. But critics argue that undermining it is no better. 'In our view, the Act clearly requires a more ambitious and credible climate strategy – one that is less high-risk and reliant on pine trees,' said Lawyers for Climate Action NZ's Jessica Palairet. 'The government is also falling short of a core purpose of the Act – to provide a framework for clear, stable climate policy.' Labour's climate spokesperson Deborah Russell said the coalition's sole focus on the Emissions Trading Scheme, rather than considering other measures, had rendered the Act largely ineffective. 'They're fulfilling the letter of the law in responding to the budgets and doing the plans, but they're not showing how they're going to get the emissions down.' When is a law not a law? The Zero Carbon Act 2019 was not a standalone law – it amended the existing Climate Change Response Act 2002, transforming it from a policy tool into a legislative backbone for emissions reduction. The main function was to set legally binding long-term targets, intended to align with global efforts to limit warming to 1.5°C above pre-industrial levels. The Act committed Aotearoa to reaching net zero greenhouse gas emissions (excluding biogenic methane) by 2050, and to cutting biogenic methane from livestock and waste by 24-47 percent by 2050, with an interim target of 10 percent by 2030. To ensure progress, the Act also introduced a system of five-yearly emissions budgets, which cap total emissions across the economy. These budgets are not sector-specific but are supported by Emissions Reduction Plans (ERPs), which outline how the government intends to meet them through policies and funding across energy, transport, agriculture, and industry. This was meant to 'anchor climate ambition in legislation', making a stable framework that would survive election cycles. The rest of the climate policies – from transport subsidies to decarbonisation incentives – were meant to fill out its bones. The following sections show what remains of that original body of work, what has been stripped away, and what has replaced it. Still standing (sort of) NZ Emissions Trading Scheme (ETS): The ETS is the main market tool used to reduce emissions. The Labour government aimed to adjust its settings to balance direct emissions cuts and offsets like forestry. The coalition government instead wants to restore confidence by ending vintaging, treating forestry NZUs (New Zealand Units) equally, and reducing the number of credits available. Centre for Climate Action on Agricultural Emissions: The centre is a core component of the Luxon government's climate change response and one of the only major policies to continue from the Labour government. It houses both the national agriculture emissions research centre and a public/private partnership named AgriZeroNZ, designed to accelerate the development and uptake of emissions-reduction tools, practices, and technologies on farms. Electric Vehicle (EV) charging infrastructure: Labour's prior commitment to improving electric vehicle charging infrastructure across New Zealand continues, although the coalition government shifted from using grants to using concessionary loans, and light EVs began paying Road User Charges (RUCs) from April 2024. The government's target is 10,000 public EV charging points by 2030, however there are currently under 1400 in commission. Improved insulation standards: Efforts to improve insulation standards for new buildings, aiming for significantly reduced energy requirements for heating, remain ongoing despite initial plans to roll them back. Grant scheme for clean heavy vehicles: The Low Emissions Heavy Vehicle Fund aims to encourage businesses to adopt cleaner heavy vehicles, including trucks, heavy vans, and non-public transport buses. The fund received new funding in 2024. Cheaper public transport: Half-price public transport for under 25s and free transport for kids ended last year, but the discount remains in place for community service card holders. Regulated product stewardship for refrigerants: A mandatory product stewardship scheme for refrigerants, initially investigated under ERP1, is coming into effect from 2025. Sustainable aviation fuels partnership: Collaboration with Air New Zealand on sustainable aviation fuels remains ongoing. Coal boiler phase-outs: The government's commitment to replace all remaining coal boilers in schools by 2025 remains in place, alongside the broader ban on new low- and medium-temperature coal boilers and the phase-out of existing ones by 2037. Develop a Māori climate strategy: This initiative is intended to elevate te ao Māori and mātauranga Māori within the overall climate response. Despite a funding cut, this initiative remains ongoing. Delayed, defunded or discontinued Many distinct policies and the overall framing of the Ardern era's emissions reductions plan (ERP1) have been altered, put on hold, or had funding cut by the current government. These include: Agricultural emissions pricing: ERP1 envisioned an emissions pricing mechanism for agriculture by 1 January 2025. The current government has delayed this to no later than 2030 and committed to keeping agriculture out of the NZ ETS. This is a fundamental change from the previous government's approach under the He Waka Eke Noa model. Climate Emergency Response Fund (CERF): The ERP1 established the CERF, which ring-fenced revenue from the ETS for climate initiatives, with an initial payment of NZ$4.5 billion. The current government ended the CERF in May 2024, meaning future climate investments will go through the usual Budget process. This discontinuation is estimated to result in a loss of 11-24 million tonnes CO2e of abatement over the first, second, and third emissions budget periods. Clean car discount: This initiative, which aimed to make electric vehicles more affordable, was an ERP1 policy. It was stopped on 31 December 2023. Sustainable biofuels obligation: This was an ERP1 initiative aimed at reducing freight emissions. It was discontinued as part of a government policy refocus in February 2023. Oil and gas exploration ban: The Labour-led government banned offshore oil and gas exploration. The current government reversed this ban. This reversal is estimated to lead to an extra 14.2 million tonnes of emissions to 2035, and 51.5 million tonnes of CO2 emissions up to 2050. Subsidies to large carbon polluters: Climate Change Minister Simon Watts rejected advice from Inland Revenue and Treasury to review hundreds of millions of dollars in climate grants to major emitters like NZ Steel, Methanex, Rio Tinto, and Fletcher Building, despite findings of 'very limited results'. Science sector reforms and cuts: The Te Ara Paerangi – Future Pathways science-system reform programme has been discontinued. There have also been job cuts at the National Institute of Water & Atmospheric Research (NIWA) which critics say will negatively impact climate change science, including marine biodiversity, climate modelling, and physical oceanography. Transport initiatives: The ERP1 aimed to improve travel choices by providing convenient, affordable public transport, walkways, and cycle lanes. The current government has ordered officials to end work on programmes that would reduce vehicle kilometres travelled (VKT) by passenger cars through providing alternatives like public and active transport. It also cut an initiative to increase the uptake of e-bikes, ended some public transport subsidies, got rid of equity measures to help low-income households access low-emissions cars, and defunded a $56 million fund specifically for electric buses. Auckland Light Rail and Let's Get Wellington Moving were canned, although the City Rail Link and extra Auckland busways will continue. A commitment to set a high threshold for investing in new roads was also discontinued. The current government is instead prioritising motorway funding and increasing speed limits. Equity and 'just transition' focus: Several ERP1 actions related to an equitable transition have been discontinued, including those which seek to support industries and workers to retrain in low-emissions jobs. The development of an income insurance scheme was also cut. Circular economy and bioeconomy strategy: ERP1 included a Circular Economy and Bioeconomy Strategy and supporting businesses moving to circular economy models. These actions have been stopped. Energy efficiency rebates: ERP1 included rebates for energy-efficient equipment. This has been stopped. New fossil-fuel baseload generation ban: ERP1 included a ban on new fossil-fuel baseload generation. This has been cancelled. New Zealand Battery Project: ERP1 stated that options for dry-year electricity storage through the New Zealand Battery Project would be investigated. This has been cancelled. Gas transition plan: ERP1 included developing a gas transition plan. This was associated with the Labour government's ban on offshore oil and gas exploration and has been abandoned with the reintroduction of exploration. Government Investment in Decarbonising Industry (GIDI) Fund: In 2020, the government created a $70m fund to incentivise companies with large fossil-fuel boilers to decarbonise. It has been closed to new applications. The estimated loss in emissions reductions from discontinuing the GIDI fund is 4.3 million tonnes of CO2e for 2026-2030. Forestry in the ETS: The Labour government introduced changes for 'permanent forestry' in the ETS from 1 January 2023. The National-led coalition has announced an independent review of forestry in the ETS. The government is also limiting whole-farm conversions to NZ ETS forestry to protect highly productive farmland. Monitoring renewable electricity target: While ERP1 set an aspirational target of 50 percent of total final energy consumption from renewable sources by 2035, monitoring progress towards this target has been stopped. Climate finance: The New Zealand Green Investment Finance (NZGIF), a fund established to support renewable energy and other low-emission projects, has been stopped. Pacific climate finance: Future climate finance to help our Pacific neighbours was cut from $250m to $100m this year. Climate-Related Disclosures (CRD) Regime: The government has proposed raising thresholds so the regime applies to fewer large entities and reducing the liability exposure for entity directors. Warmer Kiwi Homes initiative: Funding for the Warmer Kiwi Homes scheme, including subsidies for hot water heating, low-cost energy efficiency measures, and an LED lighting scheme were cut, alongside funding for a community-focused outreach programme to target hard-to-reach households. Waste management: The government put four out of five waste minimisation policies on hold in 2024, including plans to improve recycling systems and introduce a kerbside food scraps composting scheme. The Waste Minimisation Fund also had its funding cut. Tikanga-based agriculture programmes: Dedicated funding for programs to support Māori aspirations in agriculture was cut. Native trees to absorb carbon: Funding for Establishing Native Forests at Scale, a research and planting programme, was cut by $50m in Budget 2024. Dedicated climate-focused farm advisory and extension services: This was intended to include multichannel information campaigns, extension programmes (workshops, action groups), and growing a pipeline of trusted industry advisers. This has been stopped, although support continues through existing public and private advisory services. National Adaptation Plan: The coalition government discontinued a number of measures from the first National Adaptation Plan (NAP1) including work on risk management and planning for managed retreat. Although ERP2 outlines three adaptation goals, the Climate Change Commission noted there was not enough information to assess whether they are achievable. What's Replacing It Carbon Capture, Utilisation, and Storage (CCUS): The government is developing an enabling regulatory regime for CCUS, with legislation expected this year, to allow industries to access this technology for emissions reduction and removal. Fast-track approvals bill: The controversial Fast-track Approvals Bill is designed to streamline and accelerate the consenting process for various development and infrastructure projects, including renewable energy. Critics say it allows the 'override of environmental laws' and does not give sufficient weight to climate considerations, potentially making it more difficult to meet emissions budgets. Methane review: An independent review of biogenic methane science and targets has been initiated to provide up-to-date scientific evidence regarding methane's warming impact. It is widely expected the government will drop the methane target post-review. Electrify NZ: This aims to double renewable energy by 2050. This includes streamlining consenting processes through the Fast-track Approvals Bill. Work is underway to develop a regime for offshore renewable energy by mid-2025. Adaptation framework: Work is underway on an adaptation framework that aims to minimize long-predictable funding, improve information flows, and address market failures.
1News
a day ago
- 1News
Road-user charges could fund a safer, cleaner NZ – and be a world first
OPINION: The government says the planned charge is a fairer way to pay for road maintenance, but why stop there? Professor of human geography Simon Kingham outlines some potential opportunities. The government heralded its plan to move New Zealand's entire vehicle fleet to road-user charges as a fairer method of funding road maintenance. For owners of electric and diesel vehicles, this is nothing new. They already pay road-user charges based on the distance travelled. What you need to know as road user charges coming for all vehicles - watch on TVNZ+ But for petrol vehicles, it is a shift away from fuel excise duty, or petrol tax, which is currently about 77 cents per litre of fuel. As it is linked to the price of petrol, more fuel-efficient petrol vehicles pay relatively less than gas guzzlers for every kilometre travelled. ADVERTISEMENT Much of the policy detail is yet to be worked out, but if all of the country's vehicles paid road-user charges, this would provide opportunities to do more than raise revenue for road building and maintenance. Looking beyond road building and maintenance. (Source: 1News) New Zealand would become the first country to charge all vehicles a distance-based fee and, used in creative ways, this could save money and deliver better societal outcomes, such as safer roads and lower pollution. How fuel revenue is collected Fuel excise duty is currently collected at source, when refined fuel either leaves the refinery or is imported. Some other costs are included, such as a fee for New Zealand's Emissions Trading Scheme, currently around 13 cents per litre. These are simple to collect, have low compliance costs and are essentially unavoidable. Road-user charges are a distance-based payment. Licenses are pre-purchased in increments of 1,000 kilometres and various rates apply depending on vehicle weight and axle configuration. Heavier electric vehicles (more than 3.5 tonnes) are currently exempt until June 2027. This system has higher compliance and administration costs than fuel excise duty. It also has a greater risk of evasion, because to some extent, it relies on vehicle owners' honesty. ADVERTISEMENT With all vehicles moving to road-user charges, everyone will pay for every kilometre they travel on the roads, with increased rates for heavier vehicles (currently anything above 3.5 tonnes). The plan is that this will be administered electronically through some device in or on the vehicle. This already happens with many freight vehicles. Heavier vehicles will be required to pay a higher rate. (Source: In most freight vehicles, the technology includes GPS and allows freight companies to monitor the performance of their vehicles and drivers. But rolling out electronic road-user charges across the whole vehicle fleet creates interesting opportunities beyond just raising revenue. Opportunities and challenges The move to a distance-based scheme could discourage some people from selecting more fuel-efficient vehicles because a road-use system does not encourage that. This could lead to increased greenhouse gas and other emissions. However, rather than using a uniform road-user charge based solely on vehicle weight and distance travelled, rates could vary based on a range of criteria, including emissions, and pay for other traffic-related costs to society and the environment. For instance, around 300 people die each year in road crashes, and thousands more are injured. This costs NZ$9-10 billion annually. To help pay, New Zealand could collect higher road-user charge rates for vehicles more likely to cause crashes, based on safety ratings. ADVERTISEMENT Traffic-related air pollution causes more than 2,000 deaths per year, costing New Zealand around $10 billion. Road-user charges could be used to pay for this by charging a higher rate for vehicles that emit more pollution. Traffic-related air pollution causes more than 2,000 deaths per year, costing New Zealand around $10 billion. (Source: The same could be done for noise pollution. And if the electronic road-user charge device is GPS-enabled, vehicles travelling near the most vulnerable citizens – such as near schools during pick-up and drop-off – could be charged more. This may deter some people from dropping children off right outside the school gate, which in turn could have the added benefit of making walking and cycling feel safer due to less traffic, attracting more people to use active transport and helping create neighbourhood greenways. But why stop there? New Zealand could use electronic road-user charges to encourage all sorts of other behaviours. For example, lower rates might encourage vehicles to use highways and main roads instead of cutting through quiet residential streets. The morning's headlines in 90 seconds, including Zelensky's suit becomes hot topic at peace summit, a cold blast on the way, and Auckland FC lures new signing back home. (Source: 1News) Road-user charges could be used to set a congestion price, manage on- and off-street parking and monitor speed limits without the need for any additional technology, saving on setting up separate congestion and parking pricing schemes and speed cameras. ADVERTISEMENT Some will argue this is an invasion of privacy. But as Minister of Transport Chris Bishop indicated, the privacy commissioner will oversee it. If New Zealand becomes the first country to charge all vehicles for the use of roads, this an opportunity to lead in innovation. Simon Kingham is a professor of Human Geography, University of Canterbury. This artice was republished from The Conversation under a Creative Commons licence.
