Climate Policy and the Emissions Trading Scheme

How New Zealand runs an emissions trading scheme since 2008, why agriculture's methane makes its emissions profile unusual, and debates over pricing farm emissions.

New Zealand’s climate policy faces unique challenges.

Emissions profile

Agriculture, mainly methane from cows and sheep, makes up roughly half of emissions, unusual for a rich country.

ETS

New Zealand’s Emissions Trading Scheme began in 2008, covering forestry, energy and industry.

Forestry

Planting trees earns credits; critics worry this replaces farmland with pine.

Farm emissions

Plans to price farm emissions faced farmer protests; the government later delayed them.

Zero Carbon Act

The 2019 Act set a target of net zero emissions (excluding biogenic methane) by 2050.

The pine plantation

A sheep farm is converted to pine forest because carbon credits pay more than farming.

Thinking cars cause most of New Zealand's emissions

Agriculture causes about half.

Key takeaways

Agriculture is about half of emissions.
The ETS began in 2008.
Forestry credits reshape land use.
Farm emissions pricing was delayed.