Farmers can cut gas emissions and still make profit - report

More than 13 per cent of New Zealand agriculture's greenhouse gas emissions can be cut at an overall profit to farmers, the Sustainability Council told MPs today.

Council executor director Simon Terry, in a submission to a parliamentary select committee reviewing the Emissions Trading Scheme (ETS), said a report completed for the Ministry of Agriculture and Forestry (MAF) "dispelled the convenient untruth that pastoral farmers have no cost-effective options to reduce their greenhouse gas emissions".

The council calculated that 13.6 per cent of agricultural emissions could be cut cost-effectively, equivalent to 5.45 megatonnes of emissions with a value of $150 million a year at a carbon price of $30/tonne.

The figures were based on a report that energy and climate change consultants ICF International conducted for MAF and which the council obtained under the Official Information Act.

The report surveys a range of ways in which farm emissions can be lowered.

Mr Terry said the report confirmed the council's 2007 findings that the agriculture sector was easily New Zealand's best source of emission reductions.

ICF estimated it accounted for 73 per cent of the potential for emission reductions across the economy that cost less than $30/tonne in 2010.

The emission cuts were not only low cost, many were profitable to farmers today, Mr Terry said.

"These savings can be implemented quickly - in time to still make a significant difference to New Zealand's Kyoto (Protocol) bill," he said.

"If the savings identified by ICF were exploited to the fullest between 2010 and 2012, this would reduce the nation's total emissions by 16 megatonnes - and eliminate the currently projected Kyoto deficit of 14.7 megatonnes.

"Those savings will not occur unless farmers are held financially accountable for their emissions. Farm practices will otherwise change too slowly. Responsibility for emissions needs to be introduced progressively but needs to start in 2010."

Under the Labour government's ETS, farming would be exempted until 2013, which the Sustainability Council says amounts to a net subsidy to pastoral farmers of over $1.3 billion up to that time (assuming a price of $30/tonne).

"Half New Zealand's emissions come from agriculture and it is time the sector's leaders acknowledged there is a big potential for savings now instead of constantly claiming more time is needed for research," Mr Terry said.

- NZPA