Early Bird Rural News with Richard BaddileyEarly Bird Rural News with Richard Baddiley

Early Bird I Thursday December 12th 2024

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New Emissions Reduction Plan sparks fierce debate, Fed Farmers make formal complaint over bank lending, and Marlborough and Nelson-Tasman regions tighten outdoor fire restrictions.

Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!

 

Emissions Reduction Plan reveals significant gaps in climate strategy

The government’s latest emissions reduction plan has revealed both progress and persistent challenges in meeting crucial climate targets. The government's strategy moves the country closer to its goals by approximately seven million tonnes of emissions, yet still falls short of the critical emissions budget for 2031-2035 by around nine million tonnes.

Flagship policies like Electrify NZ and plans to install 10,000 electric vehicle chargers by 2030 show minimal impact on emissions over the next five years. Each policy promises only 100,000 to 200,000 tonnes of emissions savings across the entire five-year period, with EV kilometers driven increasing marginally from 9 to 9.2 percent.

More promising emissions-cutting strategies involve tackling organic waste, managing refrigerant gases, and allowing fossil fuel companies to capture and store carbon dioxide underground. 

The comprehensive package, including waste management initiatives and stricter carbon credit controls, is projected to achieve around three million tonnes of emissions savings during 2026-2030. However, a substantial gap remains - 84 million tonnes between New Zealand's expected domestic achievements and its international Paris Agreement target.

Methane reduction targets present another complex challenge. Meeting the 2030 target appears "finely balanced," with projections hovering around the 10 percent reduction goal. By 2050, methane reductions are estimated to be at the lower end of the legal target range.

However, the most impactful policies, such as pricing agricultural emissions, are not expected to have substantial effects until 2030 and beyond.

Agriculture Minister Todd McClay and Climate Change Minister Simon Watts have presented conflicting statements regarding international carbon credit purchases, adding further uncertainty to the national climate strategy.

 

New Emissions Reduction Plan sparks fierce debate

Meanwhile Otago farmer and Groundswell co-founder Bryce McKenzie has launched a scathing critique of the government's latest emissions reduction plan, arguing that the proposed agricultural emissions pricing mirrors the challenges faced under previous governments.

McKenzie warns the plan could drive up food prices while delivering negligible global environmental benefits. The updated strategy, set to introduce agricultural emissions pricing by 2030, includes technological incentives aimed at reducing agricultural carbon output.

Climate Change Minister Simon Watts defends the approach, positioning the plan as a critical pathway to New Zealand's net-zero 2050 target. He argues the strategy can simultaneously protect New Zealand's way of life, maintain an competitive agricultural sector, and meet international climate commitments.

McKenzie challenges this perspective, highlighting New Zealand farmers' existing global leadership in agricultural efficiency. He argues that farmers already possess strong motivations to adopt innovative technologies once they are proven safe, effective, and market-responsive.

The Groundswell co-founder is particularly critical of what he terms a "Farming Tax," warning that emissions pricing could undermine New Zealand's agricultural competitiveness. He argues that reduced local production would simply shift agricultural activity to less efficient international producers, potentially increasing global emissions.

McKenzie is calling for a radical rethink of international trade policies. Instead of imposing internal pricing mechanisms, McKenzie argues politicians should focus on removing trade barriers that would allow New Zealand's lower-emissions food to compete more effectively in global markets.

 

Fed Farmers make formal complaint over bank lending

Federated Farmers has escalated their concerns about New Zealand's banking sector, lodging a formal complaint with the Commerce Commission that challenges the lending practices of major banks.

They are requesting an urgent investigation into what they describe as potentially anti-competitive behavior driven by international climate commitments. 

All five primary agricultural lenders - BNZ, ANZ, ASB, Westpac, and Rabobank - are either direct or indirect members of the Net-Zero Banking Alliance. Federated Farmers banking specialist Richard McIntyre argues this alignment raises serious questions about potentially synchronized lending approaches that could dramatically impact New Zealand's agricultural sector.

The organization has uncovered internal banking documents revealing increasingly uniform emission reduction targets and lending criteria. Banks are now routinely questioning farmers about on-farm emissions and establishing similar 2030 reduction goals.

Most concerning for farmers is the potential financial pressure this might create. McIntyre warns about the risk of farmers being effectively 'de-banked' if they cannot meet strict emission reduction targets. Documentation even reveals BNZ's internal policy prohibiting new lending to petrol stations, with existing debt mandated for complete repayment by 2030.

While Federated Farmers is not definitively claiming illegal activity, they are demanding a comprehensive investigation. 

Federated Farmers emphasizes this is not an anti-environmental stance but a call for fair, transparent lending practices. They argue that given agriculture's critical role in New Zealand's economy, the potential implications extend far beyond individual farming operations.

 

Marlborough and Nelson-Tasman regions tighten outdoor fire restrictions

Marlborough and coastal Nelson-Tasman regions will enter a restricted fire season this morning.

The restricted zone encompasses a significant area, wrapping around Tasman Bay from Riwaka westward to Cape Soucis on the eastern periphery. 

Fire and Emergency's District Manager Grant Haywood warns that rapidly drying grass and challenging weather conditions are driving increased fire risk. Temperatures above average, minimal humidity, and persistent westerly winds have dramatically accelerated vegetation drying.

Current fire season status varies across nearby districts. Sandy Bay already prohibits all outdoor fires, while Waimea maintains a restricted fire season. Golden Bay, Lake Rotoiti, and Murchison currently retain an open fire season, though authorities continually monitor conditions.

For farmers, this means taking proactive measures to protect property and surrounding areas. This includes carefully checking local fire season status before any outdoor burning, maintaining clear firebreaks around properties, keeping water and firefighting equipment readily accessible, and monitoring weather conditions closely. 

Landowners in areas under restrictions wanting to conduct outdoor burning must now obtain a fire permit through www.checkitsalright.nz.

 

Western North Island seat sparks Beef + Lamb NZ director contest

Beef + Lamb New Zealand is preparing for its 2025 annual meeting, with a director election confirmed for the Western North Island electorate.

Scott Gower, the current Western North Island director, will face a challenge from Andrew Stewart. Meanwhile, Nicky Hyslop from the Central South Island has been re-elected unopposed after being the sole nominee for her district.

In mid-February next year voters in the Western North Island district will receive voting information and details about the candidates. The voting period will run until Friday, March 21st, with all ballots to be cast online.

Farmers who have previously received voting papers remain on the electoral roll and do not need to re-register. Those unsure of their status can contact B+LNZ through their helpline at 0800 233 352 or email enquiries@beeflambnz.com.



 

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