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June 10, 2022

Andrew Campbell 

On June 8, the New Zealand government released a draft plan to charge farmers for livestock emissions, the country's first such initiative. The country has unveiled a plan to tax sheep and cattle burps. The proposal is part of the Ministry of Environment's larger emissions reduction strategy, which begins in 2025 and includes measures for the energy, transportation, waste, and job sectors.

The population of New Zealand is five million people. It does, however, have about ten million cattle and twenty-six million sheep. New Zealand is a significant agricultural exporter. Agriculture accounts for half of all greenhouse gas emissions in New Zealand. As a result, pricing such emissions is one of New Zealand's strategies for reaching its net-zero goal by 2050.

He Waka Eke Noa, a collaboration between the government and the primary sector, made the recommendations. The group recommended that the government impose a split-gas levy on farm-level agricultural emissions, with built-in incentives to reduce emissions and retain carbon.

Animal methane emissions are a well-known problem. Cows alone are responsible for approximately 40% of those global warming gases, primarily through their burps. Methane has more than 80 times the warming power of carbon dioxide during its first 20 years in the atmosphere. Over a 100-year period, it warms 28 to 34 times faster than CO2.

According to Climate Change Minister James Shaw, there is no doubt that New Zealand needs to reduce its methane emissions into the atmosphere, and an effective carbon pricing scheme for agriculture will play a critical role in achieving that goal. The plan for New Zealand is expected to be completed by the end of the year.