Fonterra announces electrification plans
Fonterra has announced $15 million in investments in electrification projects across the North Island over the next 18 months.
Climate Change Minister Simon Watts says updates to the New Zealand Emission Trading Scheme have been made to ensure New Zealand has a more credible market.
“Since coming into Government, we have been clear we want a credible ETS-led approach to reduce emissions, and we were willing to make tough decisions to achieve this,” Watts says.
“To ensure the market operates as intended, we need settings to align with New Zealand’s climate targets and give participants confidence that their investments to reduce emissions will be rewarded,” he adds.
“The feedback we received is consistent with our decisions, and we have made the necessary changes that extends further than the advice we received from the Climate Change Commission.”
Watts says the Government will retain the current auction floor price, the containment reserve price, and current reserve volumes of New Zealand units in the Emissions Trading Scheme.
“These settings are doing their job and should be left alone,” he says.
The Government will also reduce the number of units available between 2025 and 2029, from 45 million to 21 million.
“As it stands, there is an oversupply of units held by participants which has contributed to a depreciated price of carbon,” Watts says. “This has led, in part, to the failure of recent auctions to clear, and poses a risk to achieving our climate targets and emissions budgets.”
He says that reducing the number of units will likely see the carbon price rise.
“We need the carbon price to encourage businesses and individuals to reduce their emissions to meet our climate targets.”
“We are mindful of the impact potential price rises will have on everyday New Zealanders, however, our modelling suggests the impact will be minimal,” Watts concludes.
Changes to unit numbers will take effect from the first auction of 2025.
Zara Williams' personal and professional growth has seen her presented with the top award at the 2025 World Wide Sires national all dairy breeds youth camp.
To mark International Day of Education on January 24, 2025, state farmer Pāmu (Landcorp) announced the commencement of its Apprenticeship Scheme, designed to equip the next generation of farmers with the skills, knowledge, and experience needed for a thriving career in agriculture.
smaXtec's bolus technology supports early detection of potential diseases, enabling preventive measures to improve herd health and reproductive outcomes.
Next month, the Beef Breeder Forum is set to give farmers an opportunity to hear about the latest developments in the beef industry.
ACC and Safer Farms have announced a new partnership in an effort to reduce harm, injuries, and fatalities in agriculture.
A Franklin dairy farmer has inched closer to national victory after being crowned Northland’s top young farmer.
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