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Agriculture Minister Damien O’Connor claims the latest proposal has addressed some of the concerns raised by HWEN and other groups.
The Government claims it has "listened and adapted" to take on board the issues that submitters made to its initial response on the He Waka Eke Noa (HWEN) report on how to deal with agricultural emissions.
Agriculture Minister Damien O'Connor says the latest proposal released just days before Christmas - has addressed some of the concerns raised by HWEN and other groups, including Federated Farmers.
When the initial Government report came out in October there was outrage in rural NZ with fears that whole rural communities would be decimated by its proposal. This prompted a flood of submissions for the Government to change tack. Fed Farmers effectively left the HWEN partnership because it was not taking a hard enough line against the Government.
O'Connor told Rural News that with the changes made to what is known as a section 215 report, he's confident that when farms go through a comprehensive assessment of their emissions liabilities they will not be as badly affected as was originally talked about.
There has been some criticism of the 215 report being released in the dying days of December, but there was a legal requirement for this to be done by the end of 2022. O'Connor claims there were many reasons for the last minute release, most of which focused on final talks with HWEN and other parties.
The changes in the latest response are described as 'high level' and include a five-year price pathway established from 2025. The Government claims this provides certainty out to 2030, while the proposed emissions levy will be set at the lowest price possible. It also agreed to recognise scientifically robust on-farm sequestration in the ETS and work with the agricultural sector on options for transitional support.
O'Connor says he understands the need for greater certainty for farmers and growers in their business planning. He adds that the Government is urgently working with the sector to develop a process to recognise on-farm carbon sequestration, which is a top priority for farmers.
"Sequestration needs to be recognised in a way that is fair, cost-effective, and scientifically robust," he told Rural News.
O'Connor says there is a commitment to work with HWEN to investigate options for targeted transitional support for farmers and officials will do further work on the use of collectives to simplify reporting and payment obligations.
"We still need to work through some details, but we have made a heck of lot of progress on the core areas."
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