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Home / The Country

Government sets out next steps for on-farm sequestration strategy

The Country
30 Nov, 2022 08:31 PM3 mins to read

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PM Jacinda Ardern reveals further details about the Government’s announcement recognising on-farm sequestration in the emissions pricing plan at Fieldays 2022. Video / NZ Herald

The Government has agreed to work with the primary sector on developing a sequestration strategy for the Emissions Trading Scheme (ETS).

Prime Minister Jacinda Ardern made the announcement yesterday at Mystery Creek on day one of Fieldays 2022.

“We want a plan for reducing agricultural emissions we can all agree on. We’ve heard sequestration is a top priority for farmers and critical to making He Waka Eke Noa work,” Ardern said.

The Government had already committed to sequestration being recognised and compensated for from 2025, Ardern said.

“The He Waka Eke Noa partnership, the Climate Change Commission, and the Government all agree that it needs to be done in a way that is fair, cost-effective, and scientifically robust.”

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The recent consultation process with farmers highlighted how important the issue of sequestration was to them, Ardern said.

“This is work we already had underway, but the next step will be to work closely with farmers to develop the scientific, and policy approaches needed to best recognise sequestration that occurs on farms.”

Agriculture Minister Damien O’Connor said the industry had asked for a plan that covered “all forms of scientifically robust sequestration possible” on-farm, which the Government supported.

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Listen to Jamie Mackay interview Prime Minister Jacinda Ardern at Fieldays on The Country below:


However, it wouldn’t be an easy task, he said.

“There is more work to do, much of it technical, but today we affirm that this will be undertaken in close partnership with the sector.”

O’Connor said the sector partnership recommended that the Emissions Trading Scheme be improved and updated to allow more vegetation categories to be included, and that vegetation types eligible under He Waka Eke Noa could be transitioned into the NZ ETS as it is expanded and improved.

“This builds on the Government’s commitment to establish native forests at scale to develop long-term carbon sinks and improve biodiversity,” he said.

Climate Change Minister James Shaw said the proposal represented a “significant shift” in the way the Emissions Trading Scheme worked.

“It means farmers will get full recognition for scientifically proven sequestration on their farms.

“This should unlock a wave of research, science and innovation into forms of emissions removal that also enhance biodiversity and other important values that aren’t always achieved through exotic forestry plantations.”

Shaw echoed O’Connor’s statement that the process wouldn’t be a simple undertaking.

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“Bringing new categories into the ETS may take some time, so there will also be a need to ensure transitional arrangements from 2025.”

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