As part of its He Waka Eke Noa - Primary Sector Climate Action Partnership, New Zealand announced a farm-level split-gas levy in October 2022, intending to create the world’s first tax on agricultural methane emissions. The revised December 2022 proposal, stated the levy for biogenic methane would be an alternative to including agriculture under New Zealand’s Emissions Trading Scheme (ETS). The revision is aimed at covering 96% of the country’s agricultural sector emissions and would cover the following thresholds i) 550 stock units (inclusive of sheep, cattle and deer, calculated on a weighted annual average basis), or ii) 50 dairy cattle. The revision includes a lower initial levy that would be fixed for five years and includes reporting requirements. It also proposes to allow industry representatives to have oversight of levy rates and use of funds, which will be used for reinvestment in research and emission reduction incentives. New Zealand estimates the policy will reduce livestock methane emissions by up to 47% by 2050. In August 2023, the government of New Zealand announced it would push back the start of the levy until the end of 2025.
Following a consultation process until November 2022, the Ministry for Environment revised its proposal in December 2022. The policy is expected to be finalized by the end of 2024. InfluenceMap will continue to track the progress of this policy.
Under consideration - delayed. Announced October 2022, with consultation period until November 2022, revised proposal announced in December 2022.
Under consideration - delayed. Announced October 2022, with consultation period until November 2022, revised proposal announced in December 2022.
