Bringing agriculture into the ETS fair in light of record Fonterra payout

Bringing agriculture into the Emissions Trading Scheme (ETS) sooner is fair, especially given the strong position of the dairy industry, Green Party Co-leader Dr Russel Norman said today.

Dr Norman was responding to news today that Fonterra was increasing its 2010/11 forecast payout range by 10 cents to $8.00-$8.10 per kilogram of milksolids.

“The Ministry for the Environment has estimated that dairy farmers would pay an extra 2.5 cents per kilogram of milk solids if they were in the ETS,” said Dr Norman.

“I doubt many would even notice the additional cost of paying their fair share of their emissions footprint.

“The main advantage of having agriculture come within the ETS is that it would save tax-payers from subsidising greenhouse gas polluters by nearly $2 billion over the next two years.

“Spending $2 billion to subsidise polluters' greenhouse gas emissions is not a smart way to run an economy. That is an extra $2 billion added to the worst deficit in New Zealand history.

“The other significant advantage of having agriculture in the ETS is transformational: Setting a proper price on carbon will begin the transition to a low carbon, clean economy.

“John Key’s vision for New Zealand’s economic future is missing this key aspect — sustainability. Bringing agriculture into the ETS is one of a number of smart solutions that utilise market mechanisms to shift the economy in a sustainable direction and help the Government balance their books at the same time.

“But it's also more than fiscal or economic. It's about protecting our kids from out-of-control climate change,” said Dr Norman.

Ministry for the Environment’s estimates of average costs of the ETS for farmers:
http://www.mfe.govt.nz/publications/climate/emissions-trading-bulletin-11/emissions-trading-bulletin-11.pdf