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Next week the Government is set to release its Emissions Reduction Plan which will outline how New Zealand will reach its climate targets.
Although this will not include agriculture - which will be covered by He Waka Eke Noa – Fonterra was still busy with plans to reduce its emissions as it strives to be Net Zero by 2050.
The co-op was on track to get out of using coal at its sites by 2037, the majority of which will be done in the next eight years, chief operating officer at Fonterra, Fraser Whineray said.
Nine per cent of Fonterra's emissions came from its manufacturing operations and predominantly came from coal, diesel and gas, Whineray told The Country Sport Breakfast's Brian Kelly.
"Just for context, that adds up to about half the national airline. So there's quite a bit of emissions to remove there."
Fonterra was moving away from diesel by procuring more EVs to further reduce its emissions and was currently building its first e-tanker.
This was part of the co-op's Electric Vehicle strategy which aimed to convert a third of its light vehicle fleet to EV's by the end of 2023, while also focusing on transitioning medium and heavy vehicles.
Replacing gas was "further away" but Fonterra was looking into some "very interesting technology," Whineray said.
However, there was one part of the equation that wasn't as easy to solve – on-farm emissions.
These accounted for 90 per cent of Fonterra's emissions, Whineray said.
"It's a bit harder to crack because what we're talking about is biology, not physical processes like we might to at the factory.
"Biological systems by their definition are created by nature and are very complex."
New Zealand had a head start by already being the world's most efficient dairy producers but there was still work to be done, Whineray said.
This was why Fonterra supported He Waka Eke Noa and the recommendations it would provide to the government by the end of this month, on a practical and effective pathway to reduce agricultural emissions in New Zealand.
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The co-op also offered its farmers on-farm emissions reports and farm environmental plans which were really important in reaching He Waka Eke Noa's proposed milestones, Whineray said.
Meanwhile, Fonterra's methane mitigation initiatives could prove to be a game-changer, he said.
Innovations such as the co-op's Kowbucha probiotic and its trial with Asparagopsis seaweed were all a part of Fonterra's efforts to reduce biogenic methane emissions.
The co-op was also working with Royal DSM, a global science-based company, on testing whether their feed additive product Bovaer – which reduced methane emissions from cows by more than 30 per cent in non-pasture-based farming systems – could work on New Zealand's pasture-based farming system.
It was unlikely there was one silver bullet to solve the methane challenge, so Fonterra continued to work with partners and stakeholders on a wide range of potential solutions, Whineray said.
"There are quite a few different things, we're not sure which one and in which combinations will be most effective.
"There are even more things besides these that we are working on - to try and keep furthering our competitive advantage in low-carbon nutrition for the world."