Funding technology and innovation is the correct way to reduce emissions - not taxing farmers says Todd Muller.

National's spokesperson on climate change told The Country's Jamie Mackay he also finds the idea of reducing cow numbers to bring down emissions "a bit nonsensical."

Despite these misgivings, Muller told Mackay he sees a "couple of things," he finds positive in recently released Productivity Commission report.

Muller, (who says he is three-quarters of the way through the 620-page report), is pleased to see the suggestion of using electricity to "essentially de-carbonise our transport fleet over the next 20 to 30 years," and the separation of methane from carbon dioxide.

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"There's real scientific evidence here to treat methane ... separate from carbon dioxide and I think that makes a whole lot of sense."

Muller believes the Government forgets that New Zealand's emissions are so high in comparison to other countries because of our food output.

"The reason we have such high agricultural emissions as a big part of our New Zealand emissions, is that we produce more food than any other country."

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Innovation and technology is the answer for reducing emissions says Muller, who believes money should be put towards these areas instead of into taxing farmers, who are already world leaders in efficient agriculture.

"Is the money we're giving to the Global Research Alliance enough? Is the money we're giving to AgResearch and the other CRIs enough? That's the debate we should be having, not saying 'I know what. Let's put a tax on farmers.'"

The Productivity Commission reports suggests 20 per cent of sheep and beef farming land should go to forestry, an idea Muller finds "a very heroic assumption."

'We don't want a vision of this country being a pine plantation of the South Pacific. Particularly when you're taking some of our best land away."