Source: New Zealand Government
The Coalition Government has today announced science-based biogenic methane targets for 2050, providing farmers and exporters with a clear pathway to reduce emissions while maintaining productivity and trade competitiveness.
Following Cabinet approval, the target will be set at a range of 14–24 per cent below 2017 levels by 2050, reflecting the findings of the independent Methane Science Review released in 2024.
“We’ve accepted a range of advice and worked closely with industry to agree a practical target that protects food production whilst substantially reducing New Zealand’s farm emissions. Today we’re delivering a practical, fair pathway that recognises New Zealand agriculture efficiency, protects jobs and production, and upholds our climate commitments,” Agriculture and Trade and Investment Minister Todd McClay says.
“The Government remains committed to our domestic and international climate change commitments, including net zero by 2050. Agriculture will continue make an important and fair contribution to achieving this reduction,” Climate Change Minister Simon Watts says.
The Coalition Government confirmed further policy changes alongside the new target:
- a legislated review in 2040 of the biogenic methane target to ensure its alignment with science and against progress of key trading partners;
- no tax on agricultural methane emissions as this would risk closing down farms and send jobs and production overseas. Reductions in methane to meet the targets will be achieved in partnership and through industry leadership and processor incentives following the lead of companies like Fonterra and Silver Fern Farms;
- investigate a split gas target for all of New Zealand’s future international climate change commitments;
- recognise and protect the importance of food production in New Zealand by better aligning domestic legislation with language in the Paris Agreement.
To back the new target, the Government is already investing more than $400 million with industry to speed up the development and roll-out of methane-cutting tools. The first is expected on farm in 2026, with up to 11 available by 2030. These include innovations like EcoPond, which cuts effluent pond emissions by over 90 percent, alongside advances in genetics, feed and farm management.
“Technology has the potential to deliver emissions reductions, while enabling the sector to grow. It’s expected that if 30 per cent of farmers take up the technologies expected to be available before 2030, total agricultural emissions could reduce by between 7 to 14 per cent over the next decade. That’s on top of any reduction in emissions that may come from efficiency gains on-farm or changes to farm systems,” Mr Watts says.
“It will be up to each farmer, processor, and company to decide how best to meet their own commitments, using the tools and innovations that fit their business.”
“We have recognised the short-lived nature and different warming impact of methane domestically. So it’s long overdue that we look into whether this same approach is appropriate in our international commitments,” Biosecurity and Food Safety Minister Andrew Hoggard says.
“To allow farmers to better measure their methane and evaluate ways to reduce their emissions without harming production, today we are also releasing an on-farm emissions calculator, which will today be available on the Ag Matters website,” Mr McClay says.
“Our approach is clear: technology and partnership, not taxes, will deliver the reductions that we need. By investing in new tools and giving farmers practical support, we can cut emissions without cutting production or profitability,” Mr Watts says.
Today’s announcement follows recent legislation limiting full-farm forestry conversions into the ETS, as part of a wider reset of climate policy to restore balance and certainty for rural New Zealand.
“Our primary sector earns nearly $60 billion in export revenue and provides more than one in ten Kiwi jobs. By setting sensible targets and backing innovation, we’re ensuring New Zealand farmers remain world leaders in producing high-quality, safe, and sustainable food, while meeting our international commitments,” Mr McClay says.