This 05 August webinar shares information about the Climate Change Commission’s first annual emissions reduction monitoring report, released in July 2024. The report provides an evidence-based, impartial view of whether the country is on course to reach its goals of reducing and removing greenhouse gas emissions. It provides insight into the progress made, challenges experienced, and opportunities and risks that need to be considered.
The following quote from Dr Rod Carr towards the end of the webinar, paints a realistic picture of what Aotearoa can expect in term of the economic our global standing and the risks. (Pages on this website explain Nationally Determined Contributions, the Paris Accord, and the Emissions Trading Scheme.)
Webinar question: What would happen if New Zealand wasn’t able or didn’t comply with our Nationally Determined Contributions (NDCs)? What are the implications for us?
Answers:
As time it goes on, meeting our NDCs is getting increasingly more difficult and expensive because of delay.
Not meeting the NDCs: we would certainly expect to see greater scrutiny of our actions from our trading partners particularly where we have free trade agreements (FTAs) and particularly with those strong climate elements within them like the EU FTA.
Not meeting them is also likely to come with a loss of influence and on the global scale in relation to climate change, which may mean we are in worse position to advocate for a response that takes into account our national circumstances.
The final thing is that global consumers and customers are increasingly scrutinising their supply chains and looking for products that are reducing emissions, and so we do increase risks around loss of the global markets.
– Jo Hendy CE: Video, The Climate Change Commission 2024 emissions reduction monitoring report, August 2024
When the rest of the world looks at New Zealand, if we haven’t
met our national determine contributions—we won’t know on the 31st of
December 2030 as it takes a couple of years for inventories and count
up— but when the partners that we care about look at our behaviour and
go, ‘Did you do all that you said you would? Did you do all that you
said you would? And did you do all the things you could have done?’
That’s going to inform whether it’s ‘that you tried hard but missed’ or
‘you didn’t try’.
So foreign countries who are in incurring very real economic
costs to reduce their emissions today— and that includes the Europeans,
the Brits, and the Americans (there’s half a trillion U.S. dollars of
taxpayers money being made available to reduce their emissions so the
idea they’re not doing anything; that’s just wrong)—so when those
countries look at NZ in the early 2030s and they look back to 2020, they
go, ‘Well you could have made a better effort to, for example,
decarbonized ground transport there were known technologies that were
available, but you just chose to buy cheap high polluting cars. You
could have chosen to stop burning as much coal and fossil gas to make
electricity by investing more sooner in renewables, but you chose not
to.’ I think that’s going to influence what the world thinks about New
Zealand ‘s behaviour more than whether we did or did hit the exact
number of tonnes for this decade.
And the rest of the world looks at New Zealand and says,
‘You didn’t try. You didn’t take up the known technologies. You are
short sighted, selfish, and reckless in your use of the climate for
profit.’ I think their attitudes to us will be very different than if we
had tried hard and done all we could but things didn’t turn out well.
– Dr Rod Carr, Video, The Climate Change Commission 2024 emissions reduction monitoring report, August 2024
New Zealand is one of the worst countries in the world in terms of meeting its commitments to keep temperatures under 1.5C. (Image: Climate Action Tracker)
New Zealand is also subsidising high greenhouse gas emissions industries by giving the agricultural sector a 100% discount (Image: Nature journal)
Capturing carbon dioxide from the air or industries and recycling it can sound like a win-win climate solution. The greenhouse gas stays out of the atmosphere where it can warm the planet, and it avoids the use of more fossil fuels.
But not all carbon-capture projects offer the same economic and environmental benefits. In fact, some can actually worsen climate change.
I lead the Global CO₂ Initiative at the University of Michigan, where my colleagues and I study how to put captured carbon dioxide (CO₂) to use in ways that help protect the climate. To help figure out which projects will pay off and make these choices easier, we mapped out the pros and cons of the most common carbon sources and uses.
Replacing fossil fuels with captured carbon
Carbon plays a crucial role in many parts of our lives. Materials such as fertilizer, aviation fuel, textiles, detergents and much more depend on it. But years of research and the climate changes the world is already experiencing have made abundantly clear that humanity needs to urgently end the use of fossil fuels and remove the excess CO₂ from the atmosphere and oceans that have resulted from their use.
Some carbon materials can be replaced with carbon-free alternatives, such as using renewable energy to produce electricity. However, for other uses, such as aviation fuel or plastics, carbon will be harder to replace. For these, technologies are being developed to capture and recycle carbon.
Capturing excess CO₂ – from the oceans, atmosphere or industry – and using it for new purposes is called carbon capture, utilization and sequestration, or CCUS. Of all the options to handle captured CO₂, my colleagues and I favor using it to make products, but let’s examine all of them.
CCUS best and worst cases
With each method, the combination of the source of the CO₂ and its end use, or disposition, determines its environmental and economic consequences.
In the best cases, the process will leave less CO₂ in the environment than before. A strong example of this is using captured CO₂ to produce construction materials, such as concrete. It seals away the captured carbon and creates a product that has economic value.
A few methods are carbon-neutral, meaning they add no new CO₂ to the environment. For example, when using CO₂ captured from the air or oceans and turning it into fuel or food, the carbon returns to the atmosphere, but the use of captured carbon avoids the need for new carbon from fossil fuels.
Other combinations, however, are harmful because they increase the amount of excess CO₂ in the environment. One of the most common underground storage methods – enhanced oil recovery – is a prime example.
Underground carbon storage pros and cons
Projects for years have been capturing excess CO₂ and storing it underground in natural structures of porous rock, such as deep saline reservoirs, basalt or depleted oil or gas wells. This is called carbon capture and sequestration (CCS). If done right, geologic storage can durably remove large amounts of CO₂ from the atmosphere.
When the CO₂ is captured from air, water or biomass, this creates a carbon-negative process – less carbon is in the air afterward. However, if the CO₂ instead comes from new fossil fuel emissions, such as from a coal- or gas-fired power plant, carbon neutrality isn’t possible. No carbon-capture technology works at 100% efficiency, and some CO₂ will always escape into the air.
One way to lower the cost is to sell the captured CO₂ for enhanced oil recovery – a common practice that pumps captured CO₂ into oil fields to push more oil out of the ground. While most of the CO₂ is expected to stay underground, the result is more fossil fuels that will eventually send more carbon dioxide into the atmosphere, eliminating the environmental benefit.
Using captured carbon for food and fuel
Short-lived materials made from CO₂ include aviation fuels, food, drugs and working fluids used in machining metals. These items aren’t particularly durable and will soon decompose, releasing CO₂ again. But the sale of the products yields economic value, helping pay for the process.
This CO₂ can be captured from the air again and used to make a future generation of products, which would create a sustainable, essentially circular carbon economy. However, this only works if the CO₂ is captured from the air or oceans. If the CO₂ comes from fossil fuel sources instead, this is new CO₂ that will be added to the environment when the products decompose. So even if it is captured again, it will worsen climate change.
Storing carbon in materials, such as concrete
Some minerals and waste materials can convert CO₂ to limestone or other rock materials. The long-lived materials created this way can be very durable, with lifetimes of longer than 100 years
A good example is concrete. CO₂ can react with particles in concrete, causing it to mineralize into solid form. The result is a useful product that can be sold instead of being stored underground. Other durable products include aggregates used in road construction, carbon fiber used in automotive, aerospace and defense ]applications and some polymers.
These materials provide the best combination of environmental impact and economic benefit when they are made with CO₂ captured from the atmosphere rather than new fossil fuel emissions.
Choose your carbon projects wisely
CCUS can be a useful solution, and governments have started pouring billions of dollars into its development. It must be closely monitored to ensure that carbon-capture technologies will not delay fossil fuel phaseout. It is an all-hands-on-deck effort to take the best combinations of CO₂ sources and disposition to achieve rapid scaling at an affordable cost to society.
Because climate change is such a complex problem that is harming people throughout the world, as well as future generations, I believe it is imperative that actions are not only fast, but also well thought out and based in evidence.
Authors:
Fred Mason, Gerry Stokes, Susan Fancy and Stephen McCord of the Global CO₂ Initiative contributed to this article.
The COP28 climate summit in Dubai has adjourned. The result is “The UAE consensus” on fossil fuels.
This text, agreed upon by delegates from nearly 200 countries, calls for the world to move “away from fossil fuels in energy systems in a just, orderly and equitable manner”. Stronger demands to “phase out” fossil fuels were ultimately unsuccessful.
The agreement also acknowledges the need to phase down “unabated” coal burning and transition towards energy systems consistent with net zero emissions by 2050, while accelerating action in “the critical decade” of the 2020s.
As engineers and scientists who research the necessary changes to pull off this energy system transition, we believe this agreement falls short in addressing the use of fossil fuels at the heart of the climate crisis.
Such an approach is inconsistent with the scientific consensus on the urgency of drastically reducing fossil fuel consumption to limit global warming to 1.5°C.
‘Abated’ v ‘unabated’
The combustion of coal, oil and gas accounts for 75% of all global warming to date – and 90% of CO₂ emissions.
So what does the text actually ask countries to do with these fuels – and what loopholes might they exploit to continue using them well into the future?
Those countries advocating for the ongoing use of fossil fuels made every effort to add the term “unabated” whenever a fossil fuel phase-down or phase-out was proposed during negotiations.
“Abatement” in this context typically means using capture capture and storage technology to stop CO₂ emissions from engines and furnaces reaching the atmosphere.
However, there is no clear definition of what abatement would entail in the text. This ambiguity allows for a broad and and easily abused interpretation of what constitutes “abated” fossil fuel use.
Will capturing 30% or 60% of CO₂ emissions from burning a quantity of coal, oil or gas be sufficient? Or will fossil fuel use only be considered “abated” if 90% or more of these emissions are captured and stored permanently along with low leakage of “fugitive” emissions of the potent greenhouse gas methane, which can escape from oil and gas infrastructure?
This is important. Despite the agreement supposedly honouring “the science” on climate change, low capture rates with high residual and fugitive emissions are inconsistent with what research has shown is necessary to limit global warming to the internationally agreed guardrails of 1.5°C and 2°C above pre-industrial temperatures.
In a 2022 report, the Intergovernmental Panel on Climate Change (IPCC) indicated that almost all coal emissions and 33%-66% of natural gas emissions must be captured to be compatible with the 2015 Paris agreement.
That’s assuming that the world will have substantial means of sucking carbon (at least several billion tonnes a year) from the air in future decades. If these miracle machines fail to materialise, our research indicates that carbon capture would need to be near total on all fuels.
The fact that the distinction between “abated” and “unabated” fossil fuels has not been clarified is a missed opportunity to ensure the effectiveness of the Dubai agreement. This lack of clarity can prolong fossil fuel dependence under the guise of “abated” usage.
This would cause wider harm to the transition by allowing continued investment in fossil fuel infrastructure – new coal plants, for instance, as long as some of the carbon they emit is captured (abated) – thereby diverting resources from more sustainable power sources. This could hobble COP28’s other goal: to triple renewable energy capacity by 2030.
By not explicitly defining these terms, COP28 missed the chance to set a firm, scientifically-backed benchmark for future fossil fuel use.
The coming age of carbon dioxide removal
Since the world is increasingly likely to overshoot the temperature goals of the Paris agreement, we must actively remove more CO₂ from the atmosphere – with reforestation and direct air capture (DAC), among other methods – than is emitted in future.
Some carbon removal technologies, such as DAC, are very early in their development and scaling them up to remove the necessary quantity of CO₂ will be difficult. And this effort should not detract from the urgent need to reduce emissions in the first place. This balanced approach is vital to not only halt but reverse the trajectory of warming, aligning with the ambitious goals of the Paris agreement.
There has only really been one unambiguously successful UN climate summit: Paris 2015, when negotiations for a top-down agreement were ended and the era of collectively and voluntarily raising emissions cuts began.
A common commitment to “phase down and then out” clearly defined unabated fossil fuels was not reached at COP28, but it came close with many parties strongly in favour of it. It would not be surprising if coalitions of like-minded governments proceed with climate clubs to implement it.
Coastal wetlands don’t cover much global area but they punch well above their carbon weight by sequestering the most atmospheric carbon dioxide of all natural ecosystems.
Termed “blue carbon ecosystems” by virtue of their connection to the sea, the salty, oxygen-depleted soils in which wetlands grow are ideal for burying and storing organic carbon.
In our research, published in Nature, we found that carbon storage by coastal wetlands is linked to sea-level rise. Our findings suggest as sea levels rise, these wetlands can help mitigate climate change.
Sea-level rise benefits coastal wetlands
We looked at how changing sea levels over the past few millennia has affected coastal wetlands (mostly mangroves and saltmarshes). We found they adapt to rising sea levels by increasing the height of their soil layers, capturing mineral sediment and accumulating dense root material. Much of this is carbon-rich material, which means rising sea levels prompt the wetlands to store even more carbon.
We investigated how saltmarshes have responded to variations in “relative sea level” over the past few millennia. (Relative sea level is the position of the water’s edge in relation to the land rather than the total volume of water within the ocean, which is called the eustatic sea level.)
What does past sea-level rise tell us?
Global variation in the rate of sea-level rise over the past 6,000 years is largely related to the proximity of coastlines to ice sheets that extended over high northern latitudes during the last glacial period, some 26,000 years ago.
As ice sheets melted, northern continents slowly adjusted elevation in relation to the ocean due to flexure of the Earth’s mantle.
For much of North America and Europe, this has resulted in a gradual rise in relative sea level over the past few thousand years. By contrast, the southern continents of Australia, South America and Africa were less affected by glacial ice sheets, and sea-level history on these coastlines more closely reflects ocean surface “eustatic” trends, which stabilised over this period.
Our analysis of carbon stored in more than 300 saltmarshes across six continents showed that coastlines subject to consistent relative sea-level rise over the past 6,000 years had, on average, two to four times more carbon in the upper 20cm of sediment, and five to nine times more carbon in the lower 50-100cm of sediment, compared with saltmarshes on coastlines where sea level was more stable over the same period.
In other words, on coastlines where sea level is rising, organic carbon is more efficiently buried as the wetland grows and carbon is stored safely below the surface.
Give wetlands more space
We propose that the difference in saltmarsh carbon storage in wetlands of the southern hemisphere and the North Atlantic is related to “accommodation space”: the space available for a wetland to store mineral and organic sediments.
Coastal wetlands live within the upper portion of the intertidal zone, roughly between mean sea level and the upper limit of high tide.
These tidal boundaries define where coastal wetlands can store mineral and organic material. As mineral and organic material accumulates within this zone it creates layers, raising the ground of the wetlands.
New accommodation space for storage of carbon is therefore created when the sea is rising, as has happened on many shorelines of the North Atlantic Ocean over the past 6,000 years.
To confirm this theory we analysed changes in carbon storage within a unique wetland that has experienced rapid relative sea-level rise over the past 30 years.
When underground mine supports were removed from a coal mine under Lake Macquarie in southeastern Australia in the 1980s, the shoreline subsided a metre in a matter of months, causing a relative rise in sea level.
Following this the rate of mineral accumulation doubled, and the rate of organic accumulation increased fourfold, with much of the organic material being carbon. The result suggests that sea-level rise over the coming decades might transform our relatively low-carbon southern hemisphere marshes into carbon sequestration hot-spots.
How to help coastal wetlands
The coastlines of Africa, Australia, China and South America, where stable sea levels over the past few millennia have constrained accommodation space, contain about half of the world’s saltmarshes.
A doubling of carbon sequestration in these wetlands, we’ve estimated, could remove an extra 5 million tonnes of CO₂ from the atmosphere per year. However, this potential benefit is compromised by the ongoing clearance and reclamation of these wetlands.
Preserving coastal wetlands is critical. Some coastal areas around the world have been cut off from tides to lessen floods, but restoring this connection will promote coastal wetlands – which also reduce the effects of floods – and carbon capture, as well as increase biodiversity and fisheries production.
In some cases, planning for future wetland expansion will mean restricting coastal developments, however these decisions will provide returns in terms of avoided nuisance flooding as the sea rises.
Finally, the increased carbon storage will help mitigate climate change. Wetlands store flood water, buffer the coast from storms, cycle nutrients through the ecosystem and provided vital sea and land habitat. They are precious, and worth protecting.
The authors would like to acknowledge the contribution of their colleagues, Janine Adams, Lisa Schile-Beers and Colin Woodroffe.
“The Guardian and researchers from Corporate Accountability, a non-profit, transnational corporate watchdog, analysed the top 50 emission offset projects, those that have sold the most carbon credits in the global market.
“According to our criteria and classification system:
A total of 39 of the top 50 emission offset projects, or 78% of them, were categorised as likely junk or worthless due to one or more fundamental failing that undermines its promised emission cuts.
Eight others (16%) look problematic, with evidence suggesting they may have at least one fundamental failing and are potentially junk, according to the classification system applied.
The efficacy of the remaining three projects (6%) could not be determined definitively as there was insufficient public, independent information to adequately assess the quality of the credits and/or accuracy of their claimed climate benefits.
“Overall, $1.16bn (£937m) of carbon credits have been traded so far from the projects classified by the investigation as likely junk or worthless; a further $400m of credits bought and sold were potentially junk.” – keep reading
Infographic: How are carbon offsets supposed to work?
Carbon Brief have also released a detailed analysis and mapping, including carbon credits claims made by New Zealand companies:
Beneath our feet, remarkable networks of fungal filaments stretch out in all directions. These mycorrhizal fungi live in partnership with plants, offering nutrients, water and protection from pests in exchange for carbon-rich sugars.
How much bigger? These microscopic filaments take up the equivalent of more than a third (36%) of the world’s annual carbon emissions from fossil fuels – every year.
As we search for ways to slow or stop the climate crisis, we often look to familiar solutions: cutting fossil fuel use, switching to renewables and restoring forests. This research shows we need to look down too, into our soils.
This fungi-plant partnership is 400 million years old
Mycorrhizal fungi are hard to spot, but their effects are startling. They thread networks of microscopic filaments through the soil and into the roots of almost every plant on earth.
But this is no hostile takeover. They’ve been partnering with plants for more than 400 million years. The length of these complex relationships has given them a vital role in our ecosystems.
Sometimes fungi take more than they give. But often, these are relationships of mutual benefit. Through their network, the fungi transport essential nutrients and water to plants, and can even boost their resistance to pests and disease.
In return, plants pump sugars and fat made by photosynthesis in their leaves down through their roots to the fungi. These compounds are rich in carbon, taken from the atmosphere.
How do these fungi fit into the carbon cycle?
On land, the natural carbon cycle involves a delicate balance. Plants take CO₂ from the atmosphere through photosynthesis, while other organisms emit it back into the atmosphere.
Now we know the carbon transfer from plants to mycorrhizal fungi isn’t a side note – it’s a substantial part of this equation.
By analysing almost 200 datasets, the researchers estimate the world’s plants are transferring a staggering 3.58 billion tonnes of carbon per year to this underground network. That’s the same as 13.12 billion tonnes of CO₂ – more than a third of the world’s 36.3 billion tonnes of CO₂ emitted yearly by burning fossil fuels.
To be clear, fungal carbon doesn’t present a climate solution by itself. It’s a missing piece in the carbon cycle puzzle.
We still have big gaps in data from particular ecosystems and geographic regions. For instance, this study didn’t have any data of this kind from Australia or Southeast Asia – because it doesn’t yet exist.
What does this mean for the climate?
We already know mycorrhizal fungi help soils retain carbon by releasing specific chemical compounds. These compounds contain carbon and nitrogen. Once in the soil, these compounds can be used by other soil microorganisms, such as bacteria. When this happens it helps to form a highly stable soil carbon store that is more resistant to breakdown, and this store can accumulate more than four times faster in the presence of mycorrhizal fungi.
When these fungi die, they leave behind “necromass” – a complex scaffold of dead organic material which can be stored in soil, and often inside clumps of soil particles. The carbon inside these clumps can stay in the soil for close to a decade without being released back to the atmosphere.
In fact, other studies suggest this fungal necromass might contribute more to the carbon content of soil than living fungi.
But these fungi also naturally cause carbon to escape back to the atmosphere by decomposing organic matter or changing water and nutrient availability, which influences how other organisms decompose. Mycorrhizal fungi also release some carbon back into the atmosphere, though the rate this happens depends on many factors.
What does this mean for climate change? While atmospheric CO₂ concentrations keep rising, it doesn’t necessarily mean fungi are storing more of it. Recent research in an Australian woodland found higher atmospheric CO₂ did see more carbon sent below the ground. But this carbon wasn’t stored for long periods.
When we cut down forests or clear land, we not only disrupt life above the ground, but underground as well. We need to safeguard these hidden fungal networks which give our plants resilience – and play a key role in the carbon cycle.
As we better understand how these fungi work and what we’re doing to them, we can also develop farming methods which better preserve them and their carbon.
We’ve long overlooked these vital lifeforms. But as we learn more about how fungi and plants cooperate and store carbon, it’s well past time for that to change.
The Intergovernmental Panel on Climate Change’s (IPCC) synthesis report recently landed with an authoritative thump, giving voice to hundreds of scientists endeavouring to understand the unfolding calamity of global heating. What’s changed since the last one in 2014? Well, we’ve dumped an additional third of a trillion tonnes of CO₂ into the atmosphere, primarily from burning fossil fuels. While world leaders promised to cut global emissions, they have presided over a 5% rise.
The new report evokes a mild sense of urgency, calling on governments to mobilise finance to accelerate the uptake of green technology. But its conclusions are far removed from a direct interpretation of the IPCC’s own carbon budgets (the total amount of CO₂ scientists estimate can be put into the atmosphere for a given temperature rise).
The report claims that, to maintain a 50:50 chance of warming not exceeding 1.5°C above pre-industrial levels, CO₂ emissions must be cut to “net-zero” by the “early 2050s”. Yet, updating the IPCC’s estimate of the 1.5°C carbon budget, from 2020 to 2023, and then drawing a straight line down from today’s total emissions to the point where all carbon emissions must cease, and without exceeding this budget, gives a zero CO₂ date of 2040.
Given it will take a few years to organise the necessary political structures and technical deployment, the date for eliminating all CO₂ emissions to remain within 1.5°C of warming comes closer still, to around the mid-2030s. This is a strikingly different level of urgency to that evoked by the IPCC’s “early 2050s”. Similar smoke and mirrors lie behind the “early 2070s” timeline the IPCC conjures for limiting global heating to 2°C.
IPCC science embeds colonial attitudes
For over two decades, the IPCC’s work on cutting emissions (what experts call “mitigation”) has been dominated by a particular group of modellers who use huge computer models to simulate what may happen to emissions under different assumptions, primarily related to price and technology. I’ve raised concerns before about how this select cadre, almost entirely based in wealthy, high-emitting nations, has undermined the necessary scale of emission reductions.
In 2023, I can no longer tiptoe around the sensibilities of those overseeing this bias. In my view, they have been as damaging to the agenda of cutting emissions as Exxon was in misleading the public about climate science. The IPCC’s mitigation report in 2022 did include a chapter on “demand, services and social aspects” as a repository for alternative voices, but these were reduced to an inaudible whisper in the latest report’s influential summary for policymakers.
The specialist modelling groups (referred to as Integrated Assessment Modelling, or IAMs) have successfully crowded out competing voices, reducing the task of mitigation to price-induced shifts in technology – some of the most important of which, like so-called “negative emissions technologies”, are barely out of the laboratory.
The IPCC offers many “scenarios” of future low-carbon energy systems and how we might get there from here. But as the work of academic Tejal Kanitkar and others has made clear, not only do these scenarios prefer speculative technology tomorrow over deeply challenging policies today (effectively a greenwashed business-as-usual), they also systematically embed colonial attitudes towards “developing nations”.
With few if any exceptions, they maintain current levels of inequality between developed and developing nations, with several scenarios actually increasing the levels of inequality. Granted, many IAM modellers strive to work objectively, but they do so within deeply subjective boundaries established and preserved by those leading such groups.
What happened to equity?
If we step outside the rarefied realm of IAM scenarios that leading climate scientist Johan Rockström describes as “academic gymnastics that have nothing to do with reality”, it’s clear that not exceeding 1.5°C or 2°C will require fundamental changes to most facets of modern life.
Starting now, to not exceed 1.5°C of warming requires 11% year-on-year cuts in emissions, falling to nearer 5% for 2°C. However, these global average rates ignore the core concept of equity, central to all UN climate negotiations, which gives “developing country parties” a little longer to decarbonise.
Include equity and most “developed” nations need to reach zero CO₂ emissions between 2030 and 2035, with developing nations following suit up to a decade later. Any delay will shrink these timelines still further.
Most IAM models ignore and often even exacerbate the obscene inequality in energy use and emissions, both within nations and between individuals. As the International Energy Agency recently reported, the top 10% of emitters accounted for nearly half of global CO₂ emissions from energy use in 2021, compared with 0.2% for the bottom 10%. More disturbingly, the greenhouse gas emissions of the top 1% are 1.5 times those of the bottom half of the world’s population.
So where does this leave us? In wealthier nations, any hope of arresting global heating at 1.5 or 2°C demands a technical revolution on the scale of the post-war Marshall Plan. Rather than relying on technologies such as direct air capture of CO₂ to mature in the near future, countries like the UK must rapidly deploy tried-and-tested technologies.
Retrofit housing stock, shift from mass ownership of combustion-engine cars to expanded zero-carbon public transport, electrify industries, build new homes to Passivhaus standard, roll-out a zero-carbon energy supply and, crucially, phase out fossil fuel production.
Three decades of complacency has meant technology on its own cannot now cut emissions fast enough. A second, accompanying phase, must be the rapid reduction of energy and material consumption.
Given deep inequalities, this, and deploying zero-carbon infrastructure, is only possible by re-allocating society’s productive capacity away from enabling the private luxury of a few and austerity for everyone else, and towards wider public prosperity and private sufficiency.
For most people, tackling climate change will bring multiple benefits, from affordable housing to secure employment. But for those few of us who have disproportionately benefited from the status quo, it means a profound reduction in how much energy we use and stuff we accumulate.
The question now is, will we high-consuming few make (voluntarily or by force) the fundamental changes needed for decarbonisation in a timely and organised manner? Or will we fight to maintain our privileges and let the rapidly changing climate do it, chaotically and brutally, for us?
“Our wise and noble leaders have just concluded the 27th annual global climate conference known as COP27. They all seem jolly pleased with what they’d all decided to achieve including really very sincere commitment to work super-duper hard to put in place policy that would definitely address the idea of thinking about doing things that might contribute towards the possibility of reducing greenhouse gas emissions with the aim of maybe limiting global temperatures to only 1.5 degrees Celsius above preindustrial levels. Then there were the 636 lobbyists—I mean delegates at COP27—representing the fossil fuel industry who reassured us all that increasing oil and gas exploration was actually an extremely important part of the transition toward achieving the 1.5 degrees Celsius target.”
This is a submission on behalf of the Environmental Defence Society (EDS) on the Government’s Discussion Document Te Tātai utu o nā tukunga: Pricing Agricultural Emissions.
The submission responds to the schedule of questions included in the discussion document, reproduced in full with permission from Gary Taylor Chief Executive, Environmental Defence Society:
Question 1:Do you think modifications are required to the proposed farm-level levy system to ensure it delivers sufficient reductions in gross emissions from the agriculture sector? Please explain.
If farmers are to balk at the proposal as indicated by recent statements from Federated Farmers and others, and widespread non-compliance follows, then implementing a processor-level system would be a practical way forward. It is alarming how some farmers are signalling an unwillingness to comply with the rule of law. The farm-level option (which has benefits in sending price signals to individual famers) may therefore not be workable at least in the short term. Processors could develop their own incentive arrangements for their suppliers and some have experience in doing that already.
Question 2:Are tradeable methane quotas an option the Government should consider further in the future? Why?
There may be benefit in seeing the levy system as a transition to a cap and trade system. This means the levy system should be designed so that such a transition could occur. The cap should be set (and reviewed from time to time) by the Climate Change Commission (Commission) at the level that achieves the reduction targets. If Ministers were to make the decisions, then there should be transparent criteria in place, and they should be advised on the appropriate level by the Commission.
Question 3: Which option do you prefer for pricing agricultural emissions by 2025 and why?
A farm-level levy system, with fertiliser in the New Zealand Emissions Trading Scheme (ETS), would give individual farmers incentives to reduce emissions and reward those doing so. However, that may be an impractical option given that some farmers seem determined to not cooperate with any system. For that reason, we favour a pragmatic approach where pricing is set at the processor level, which would help avoid non-compliance. Processors could then develop incentives that would apply to their supplier cohort. There are also questions around whether a farm-level system could be developed in time.
Prices should be set either directly by the Commission, or if by Ministers, on the advice of the Commission and subject to transparent criteria.
Fertiliser should come under the ETS which would mean all fertiliser users are captured and the price signal applies across the sector.
Question 4:Do you support the proposed approach for reporting of emissions? Why, and what improvements should be considered?
Broadly yes but further work is needed to simplify the reporting system and ensure the obligations are proportional to the need.
Question 5:Do you support the proposed approach to setting levy prices? Why, and what improvements should be considered?
Price setting cannot be the responsibility of the sector itself. It must be independent and linked to the methane reductions required. As mentioned above, EDS favours this responsibility resting with the independent Commission (analogous to the Reserve Bank on interest rates). But if set by Ministers, then there should be clear decision-making criteria, and they should receive advice from the Commission. Further, the proposed ETS discount rates for long-lived gases are too generous given the persistent delays in bringing the sector into a pricing mechanism.
Question 6:Do you support the proposed approach to revenue recycling? Why, and what improvements should be considered?
Recycling revenue into finding new abatement approaches makes sense in theory, but the problem is that over $100m of public money has gone down that route since the early 2000s, with very little to show for it. If revenue is to go into research it needs to be to entities that offer prospect of deployment of real technologies into the field. Research criteria therefore need to focus on deployment.
The answer to emissions mitigation is to reduce land use intensity. Some compensation for that might also be needed given the farming sector has simply been following the economic signals to date. There is virtue in the model of low-impact pastoral farming with indigenous forestry, and recycling could support that kind of transition.
The big gap in the policy settings, at present, is the lack of strong and effective incentives for indigenous afforestation. Revenue recycling should be used to create such incentives, given the longer term sequestration and biodiversity benefits that would follow.
Further consideration should be given to whether revenue from the levy should also be used to support farmers needing assistance with adaptation crises on the farm (such as droughts and floods).
Question 7:Do you support the proposed approach for incentive payments to encourage additional emissions reductions? Why, and what improvements should be considered?
The price signals should be robust enough to incentivise the emission reductions required. Otherwise the sector is getting disproportional assistance / subsidies from the Government over other sectors.
Question 8:Do you support the proposed approach for recognising carbon sequestration from riparian plantings and management of indigenous vegetation, both in the short and long term? Why, and what improvements should be considered?
Two approaches are required here.
The first is to create a biodiversity incentive payment to support native forest and related plantings or regeneration. The proposed interim approach will achieve that, in part, but biodiversity enhancements need to be considered in the broader context and be designed to encourage and support native forest restoration at landscape scale.
The second is to ban permanent exotic carbon forests in the ETS.
The first approach can help support related government policies such as the National Policy Statement for Indigenous Biodiversity. The second would prevent widespread monocultures with their attendant adverse landscape impacts and fire and disease risks.
Question 9:Do you support the introduction of an interim processor-level levy in 2025 if the farm-level system is not ready? If not, what alternative would you propose to ensure agricultural emissions pricing starts in 2025?
Yes. In fact we think that should be the way forward in any event.
Question 10:Do you think the proposed system for pricing agricultural emissions is equitable, both within the agriculture sector, and across other sectors, and across New Zealand generally? Why and what changes to the system would be required to make it equitable?
It is time that the sector played its part in mitigating the impacts of climate change. It has got away with too much, for too long, and continuing taxpayer subsidy and support and the proposed incremental nature of the pricing obligations continue that approach. It is inequitable for the primary sector to be relying on others which are paying their way through the ETS.
With respect to Māori landowners, there may be a case for some interim support given they appear to be disproportionately impacted by the proposal. The best way to do that is to create a special category in the ETS for native forest regeneration and establishment that gives a long-term revenue stream as good as or better than permanent exotic carbon forests.
Question 11:In principle, do you think the agricultural sector should pay for any shortfall in its emissions reductions? If so, do you think using levy revenue would be an appropriate mechanism for this?
Yes and that calculation should be made by the Commission.
Question 12:What impacts or implications do you foresee as a result of each of the Government’s proposals in the short and long term?
Unless the Government’s proposals are enacted, we see widespread planting of permanent exotic carbon forests and rural non-compliance with the law. There will be some emission reductions, but the sector will continue to hold out on meeting its fair share, as it has since 2002. The climate will continue to warm with consequent droughts, floods and sea-level rise and farmers will continue to hold out their hands for Government support when impacted.
Question 13:What steps should the Crown be taking to protect relevant iwi and Māori interests, in line with Te Tiriti o Waitangi? How should the Crown support Māori land owners, farmers and growers in a pricing system?
By changing the pricing incentives to favour permanent native forests over permanent exotic ones. Māori landowners have indicated a preference for natives but the pricing incentives are going the wrong way.
Question 14:Do you support the proposed approach for verification, compliance and enforcement? Why, and what improvements should be considered?
Yes.
Question 15:Do you have any other priority issues that you would like to share on the Government’s proposals for addressing agricultural emissions?
The glaring gap is the absence of the right pricing incentives to encourage native forest restoration that would lead to a virtuous mixed land use in which native forests offset some on-farm emissions over time.