New Zealand mulls over pricing sheep and cow burps to curb greenhouse gases

A draft plan to price agricultural emissions was released on Wednesday by New Zealand in an effort to curb one of the country's biggest sources of greenhouse gases, belching sheep and cattle.

According to the Ministry for Environment, New Zealand would be the first country to make farmers pay for livestock emissions. With a population of 5 million, New Zealand has about 10 million cattle and 26 million sheep.

Agriculture is responsible for nearly half of the country's greenhouse gas emissions, mainly methane. However, agricultural emissions have been exempt from the country's emissions trading scheme, leading to criticism over the government's commitment to fighting climate change.

According to a draft plan drafted by the government and farm community representatives, farmers will have to pay for their gas emissions starting in 2025. Long-lived and short-lived farm gas will be priced separately, but their volume will be calculated using one measure.

"There is no question that we need to cut the amount of methane we are putting into the atmosphere, and an effective emissions pricing system for agriculture will play a key part in how we achieve that," Climate Change Minister James Shaw said.

On-farm forestry can be used to offset emissions, while farmers can also be rewarded for reducing emissions through feed additives. In addition, the scheme's revenue will be invested in research, development, and advisory services for farmers.

"Our recommendations enable sustainable food and fibre production for future generations while playing a fair part in meeting our country's climate commitments," said Michael Ahie, chair of the primary sector partnership, He Waka Eke Noa.

Susan Kilsby, the agricultural economist at ANZ Bank, said the proposal could be the largest regulatory disruption to farming since the removal of agricultural subsidies in the 1980s.

A final decision on the scheme is expected in December.