Current ETS obligations

Current ETS obligations

Agriculture sector emissions reporting under ETS

Compulsory reporting of agricultural sector emissions under the Emissions Trading Scheme begins in 2012.  However, the only participants in the deer industry that must carry out this reporting are the deer slaughtering plants.  The plants must report the total tonnes of deer produced.  However, wild deer processed in the plant is excluded from the reporting requirement, as wild animals are not within the ETS (their emissions not being subject to any kind of human control).  The plants must also report their total emissions for each animal type, which is done by multiplying the total tonnes of production by the emissions factor for deer.  Take a look at how it works by looking at the relevant regulations.

Agricultural participants will eventually face an obligation to surrender NZUs for agricultural emissions.

Please see Agriculture’s obligations: Reporting emissions and surrendering NZUs for more information.

Agriculture sector surrender obligations
Surrender obligations were supposed to start for agriculture in 2015 but the Government has recently amended the Climate Change Response Act 2002 to suspend agriculture's entry indefinitely.  This is because tools for farmers to significantly mitigate agricultural emissions have not emerged.  As the Act stands at the moment, the 'point of obligation' for both reporting and surrender of units for agriculture is the deer slaughter plant, so if this does not change, if surrender obligations for agriculture commenced, trading in and surrender of units would be done by the plants.  The Government is, however, closely examining how it could operate a point of obligation at the farm level, which would make each farmer an ETS scheme participant.  DINZ will be working closely with the Ministry for Primary Industries to ensure that any changes in the scheme's operation impose the least regulatory burden possible on deer farmers.