Regulations for Agriculture in the NZ ETS

On 23 September 2010, the Government made regulations that set out:

  • exemptions for agricultural participants;
  • information that participants need to record and provide;
  • the formula for participants to calculate agricultural emissions.

Participants for agriculture in the NZ ETS will need to follow these regulations when they start reporting emissions.

Voluntary reporting of emissions begins 1 January 2011, and compulsory reporting begins 1 January 2012.

Who participates in the NZ ETS for agriculture?

The law sets the point of obligation for agriculture emissions at processor level. This means that, in general, you will be a participant if you:

  • slaughter ruminant animals, pigs or poultry under a risk management programme;
  • export live cattle, sheep or pigs in accordance with an animal welfare certificate;
  • process milk or colostrum under a risk management programme;
  • produce eggs and operate a risk management programme;
  • import or manufacture synthetic fertiliser containing nitrogen.

The following exemptions apply.

  • A person who operates below the thresholds set out below:
    • fertiliser manufacturers and importers that produce or import one tonne of fertiliser (regardless of nitrogen content) in a calendar year
    • live animal exporters that export 20 cattle, sheep or pigs in a calendar year
    • egg producers with an average of 2,290 hens in the calendar years 2011 to 2013, and 860 hens from 2014.
  • Retail butchers.
  • Farm dairies.
  • The slaughter of bobby calves, layer hens, llamas, alpacas, ostriches, horses, emus, and ruminants other than cattle, sheep, goats and deer.

The flowchart helps explain who is a participant in the NZ ETS for agriculture.

How will emissions be calculated?

To calculate emissions, participants need to multiply the quantity of a product by an emissions factor for that product. Download the tables of emissions factors for each product.

Meat processors

Emissions from the slaughter of cattle, sheep, goats, deer, pigs, and poultry are calculated on a 'per head factor' and a 'per tonne of product factor'. There are different emissions factors for each livestock class within each species.

Emissions = [(tonnes of meat processed by stock type) x (emissions factor)] + [(number of animals by stock type) x (emissions factor)]

Milk or colostrum processors

Emissions in the dairy sector are assigned to products based on the energy required to produce those products.

Cow and goat emissions = (tonnes of milk solids processed) x (emissions factor)
Sheep emissions = (tonnes of butterfat processed) x (emissions factor)

Fertiliser manufacturers and importers

Emissions from synthetic nitrogen fertiliser are accounted for when it's imported or manufactured, rather than when it is sold.

Emissions = [(tonnes of nitrogen imported or manufactured x its percentage nitrogen content) – (tonnes of nitrogen exported x its percentage nitrogen content)] x (emissions factor of 5.72)]

Live animal exporters

Emissions from live exported animals are accounted for with a simplified calculation because exporters do not know the carcass weight of exported animals.

Emissions = (number of animals by stock type) x (emissions factor)

Egg producers

Egg producers are responsible for the nitrous oxide emissions from the manure of layer hens.

Emissions = (average number of layer hens on site per year) x (emissions factor)
Average number of layer hens in a year = total hens on 1 Jan + total hens on 1 Apr + total hens on 1 Jul + total hens on 1 Oct

What are the emissions factors and how were they worked out?

Emissions factors are numbers used to calculate the carbon dioxide-equivalent emissions for each unit of product produced. Each species and class of animal has its own emissions factor.

Download the tables of emissions factors for each product.

Emissions factors were developed to include a fixed component and a variable component

Assigning emissions to different animals and products is a complex process, so a number of principles were applied to set emissions calculations. Calculations avoid double counting, use data that is readily available to participants, and are consistent with emissions calculations in New Zealand's Greenhouse Gas Inventory.

Emissions factors will be updated if the science behind New Zealand's Greenhouse Gas Inventory is updated. For practicality, some emissions factors use industry averages. Data will be monitored and updated where necessary through the normal regulation process.

What information will participants need to report annual emissions?

Participants will need to report emissions for each calendar year. The following information will need to be recorded to calculate emissions.

Meat processors will need to record the total:

  • number of animals slaughtered in each livestock class;
  • quantity in tonnes of meat (carcass weight) in each livestock class.

Dairy processors will need to record total quantities (in tonnes) of:

  • milk solids processed for cows and goats;
  • butterfat processed for sheep.

Fertiliser manufacturers and importers will need to record the total quantity (in tonnes) of nitrogen fertiliser imported or manufactured, its percentage nitrogen content, and the quantity exported. The term "synthetic fertiliser containing nitrogen" has been defined in a way that targets fertiliser produced or imported for agricultural purposes.

Egg producers will need to record the number of their layer hens on the first of January, April, July and October.

Exporters of live cattle, sheep and pigs will need to record the total number of exported animals in each livestock class.

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Last Updated: 14 March 2011

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