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New Zealand is unique amongst developed countries in that almost 50 per cent of our emissions come from the agriculture sector. One third of these emissions come from nitrous oxide (from livestock urine, manure and artificial fertiliser) and two-thirds come from methane (primarily from livestock burping…the "fart" tax was in fact a misnomer).

But despite making up almost 50 per cent of all the country's emissions, despite the fact agricultural emissions are rising, and despite the fact agricultural production is becoming less and less efficient compared to other countries, agriculture is exempt from the government's emissions trading scheme until 2013.

And while we wait five years for the sector to become accountable, it's taxpayers who are paying the price. Agriculture's late entry into the scheme is in effect a massive subsidy because the taxpayer must pay the financial cost of agricultural emissions via penalties under the Kyoto Protocol.  The New Zealand Government will be liable for purchasing emission credits from other countries if New Zealand's Kyoto targets are not met. The cost of this is likely to run into the billions.  This is effectively a gift from taxpayers to polluters. So while the expansion of dairy becomes the latest boom industry for a few it's average New Zealanders who'll have to fork out for what that costs the planet.

As stated in the recently released report - New Zealand's Expanding Carbon Footprint - Analysis of New Zealand's Emissions Trading Scheme; major flaws and barriers to emission cuts (authored by two Australian energy and economics experts) The decision to exempt agriculture from the ETS until 2013 ensures that the ETS will be unable to deliver any significant reductions in greenhouse emissions. The report goes on to say that "of more concern, however, is the likelihood that the lack of any significant restrictions on the agriculture industry will result in continued steady increases in emissions from NewZealand's largest emitting sector."

Some in the agricultural industry argue that a scientific breakthrough is needed before we can make any headway with greenhouse gas emissions and that the only way for it to reduce its emissions now is to reduce production. This is simply not true.

There are a number of practices being implemented by a growing number of New Zealand farmers that can help to reduce agricultural emissions.  These practices focus on finding more sustainable ways of looking after the soils on farms in order to reduce the amount of chemical nitrogen fertilisers and superphosphates required for meeting on-farm productivity. Simple changes in animal grazing practices such as leaving more residual grass cover in pasture can have a dramatic effect on long term soil health and thus reduce greenhouse gas emissions.

The New Zealand agricultural sector has an opportunity to lead the world in low greenhouse emission farming through the adoption of best practice measures that are already available and starting to be implemented on farms in New Zealand.  Some farmers could even eventually make money out of selling credits for their good work.

But in order to get there, the industry must take responsibility for their massive contribution to New Zealand's skyrocketing emissions.  They need to come in to the emissions trading scheme within 2 years.

Like every other export sector, the farming industry should be itching to get out in front of a new wave of economic opportunity that is fueled by consumer concern over climate.

Being clean and green is starting to count when a product hits shelves overseas and all our exporters should be doing everything they can to corner and monopolise that high end of the market. If short-term unsustainable farming practices continue unchecked then the clean and green New Zealand farming image will become tainted and less attractive to global consumers.  

We need to be farming better, not more, and in a sustainable way that allows us to produce truly clean and green food for generations to come.

As former US vice president Al Gore said: If New Zealanders followed through on that pledge to become carbon neutral and businesses in every sector searched for new approaches to accomplish that goal, they would find the world beating a path to their door…." Al Gore]

Greenpeace is calling for agriculture to be brought in under the ETS by 2010.