Session 3A presentation from the 7th Strategic Dialogue of the Carbon Market Platform, 4-5 October 2022

1. Carbon pricing in food systems: Potential
issues and options
A presentation at the 2022 Strategic Dialogue of the Carbon
Market Platform (CMP)
5th October 2022
Presentation by Jessica Bensemann
Principal Analyst - He Waka Eke Noa – Ministry for the
Environment, New Zealand

2. Background
• The Government of Aotearoa New Zealand is committed to doing its part
in mitigating the worst effects of anthropogenic climate change, by
reducing emissions of greenhouse gases (GHGs) across the economy in
keeping with our international treaties, agreements and commitments.
• This has been reflected in our legislated target under the Climate Change
Response Act 2002 (CCRA), which includes:
• reducing gross biogenic methane by 10% by 2030 from 2017 levels and by 24–
47% by 2050 from 2017 levels; and,
• reducing all other greenhouse gases to net zero by 2050.
• Agriculture contributes around half of New Zealand’s gross greenhouse gas
emissions. Including 91% of biogenic methane and 94% of nitrous oxide
emissions.
• If we are to have a chance of achieving these targets, it is important that
significant reductions are achieved within the agricultural sector.
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Figure 1: Profile of GHG emissions in Aotearoa NZ

3. History of the partnership
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Key documents of the partnership and commission

4. History of the partnership cont’d
He Waka Eke Noa is a partnership between iwi/Māori, government, and primary industry. The partnership has
thirteen partners:
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Other sponsors:

5. REGULATOR
AGRICULTURAL PROCESSORS
REPORT EMISSIONS
VIA CALCULATOR
INCENTIVES, SUPPORT, etc.
SELL PRODUCT
REVENUE
RECYCLED
R&D, etc.
EMISSIONS
CALCULATOR
FARMER
SUPPORT VIA
INDUSTRY
PROGRAMMES
The partnership’s recommendation-Farm level levy
CALCULATOR FOR EMISSIONS &
UNDERSTANDING HOW TO
REDUUCE EMISSION ON-FARM
BESPOKE
GOVERNANCE
ARRANGEMENT
INTEGRATED
SEQUESTRATION TO
OFFSET EMISSIONS

6. Some insights from the process
• Partnership – Policy co-design with sector bodies and Māori
• Importance of sector buy-in
• Difficulty to make trade-offs
• Treatment of long-lived vs. short lived gases
• Working within legislative framework – split gas targets
• Fairness with other sectors
• Tensions between complexity and effectiveness
• Cost-benefit from granularity of reporting and scope of coverage
• Dealing with Gross vs. Net emissions
• Recognition of sequestration is important for farmers and growers if charged for
emissions

7. Complementary policies
1. Market led production systems driving productivity, sustainability and inclusivity of our sector in concert.
• Fit for a Better World roadmap embraces principles of Te Taiao – a deep relationship of respect and
reciprocity with the environment.
2. Centre for Climate Action on Agriculture Emissions
Strategic investment and action to:
• Unite efforts to accelerate research and development;
• Get new tools, technology and practices to lower on-farm emissions to farmers faster;
• Complement the work being done through the He Waka Eke Noa partnership; and
• Support Māori owners with climate change mitigation.
3. Expansion of extension services to help empower farmers and growers to reduce emissions on-farm
• Boost to specialised climate-focused extension services
4. Supporting Māori agribusinesses leading the transition
• Funding programmes based on Māori procedure, practices and customs (tikanga) to develop and support
long-term, low emissions profiles.
• Enhancing the Māori Agribusiness Extension programme to partner with Māori agribusiness clusters and
provide tools, support and information to explore ways to sustainably lift their productivity.
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8. Pātai | Questions?
Pātai | Questions?