Agricultural activities have been removed from the New Zealand Emissions Trading Scheme (NZ ETS) with the passing of the Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Bill on 21 November.
The Bill, introduced to Parliament in June, amended the Climate Change Response Act 2002 (CCRA) to remove all agricultural activities from the NZ ETS, including obligations for agricultural processors and fertiliser importers and manufacturers, to pay for on-farm emissions from January 1, 2025.
The removal of agricultural activities also means farmers will not have to start reporting their on-farm emissions from 1 January 2026 and paying for them from 1 January 2027.
The amended legislation follows the deferral of reporting obligations for animal-farmer activities by Order in Council on October 2, 2023, following consultation.
The Government intends to implement a pricing system outside the NZ ETS for on-farm emissions by 2030.
The amendment to the Act came into force on November 26, 2024, following Royal Assent.