The Government has announced new "science-based" methane targets for 2050, which it says will provide exporters with a clear pathway to reduce emissions, while maintaining productivity and trade competitiveness.
The target would be set at a range of 14-24% below 2017 levels by 2050, reflecting the findings of the independent Methane Science Review released in 2024, it said on Sunday.
The new target is well below the previous legislation, which aimed for a 24-47% reduction.
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Agriculture and Trade and Investment Minister Todd McClay said the Government had worked closely with industry and accepted a range of advice to determine a "practical target".
"Today, we're delivering a practical, fair pathway that recognises New Zealand agriculture efficiency, protects jobs and production, and upholds our climate commitments," he said.
The Climate Change Commission (CCC) – the independent body tasked with advising the Government on emissions – previously said the target set by the 2024 review was not high enough.
The CCC instead recommended even greater methane reductions of 35-47% by 2050.
Climate Change Minister Simon Watts said the government remained committed to New Zealand's climate change commitments, "including net zero by 2050".
"Agriculture will continue to make an important and fair contribution to achieving this reduction," he said.
'Moved the goalposts'
Labour said National had "moved the goalposts" on climate change targets, because it would not stand up to its coalition partners.
"The Government can't find solutions that would see us keep our climate commitments, so it's taking the easy road," Labour climate spokesperson Deborah Russell said.
"If they can't meet the target, they should admit it and fix the policy, not change the target. Labour is ready to support action that reduces emissions for the long-term.
"New Zealanders deserve to see the advice and analysis this decision is based on, as it rejects the independent, scientific advice of the Climate Change Commission."
The changes threatened to disrupt the competitive advantage New Zealand exporters had in international markets, Russell said.
"Our trade deals with the UK and EU are built on strong climate pledges, and weakening them risks access to key markets. Even in the United States, buyers care about sustainability.
"If we can't meet that demand, we'll lose sales and jobs.
"Most farmers back the Paris Agreement and are working hard to cut emissions. They deserve a government that backs them to succeed, not one that simply moves the goalposts, based on a noisy minority.
"Once again, Christopher Luxon's weak leadership means National has caved to coalition pressure, rather than stand up for New Zealand's long-term interests.
"Labour stands ready to work on practical, bipartisan climate solutions, backing farmers with certainty and tools to keep New Zealand competitive, but the government has shut us out. This decision risks our reputation, our exports and our economy."
'Fantasyland assault' v 'cheap accounting trick'
The target would be set at a range of 14-24% below 2017 levels by 2050. (Source: 1News)
ACT heralded the reduced methane target as a "win" for the party.
"Today, the fantasyland assault on farmers has been slashed," party leader David Seymour said, claiming the announcement reflected science, not ideology.
"Labour's unscientific climate targets could only be met by destocking and shutting down farms," ACT agriculture spokesperson Mark Cameron said. "Today's decision shows that balance and commonsense have returned, with targets that can be met through business-as-usual efficiency improvements."
Meanwhile, the Greens decried the Government's halving of targets under the guise of "no additional warming" as a "cheap accounting trick".
"Today, Christopher Luxon has downgraded climate ambition, meaning a higher cost of living and ultimately far worse outcomes for the farmers he says he's doing this for," Green Party co-leader and climate change spokesperson Chlöe Swarbrick said.
"Methane is a superheating gas – 80 times stronger at frying our atmosphere than carbon in the short-term. To keep a liveable planet, we must cut methane emissions.
"This methane denial betrays farmers, who are on the front line of climate-driven extreme weather events that threaten global food production and rural livelihoods.
"Many farmers are innovating farming with lower emissions - not by denying the climate problem, but by facing it."
The Government confirmed further policy changes alongside the new target.
- A legislated review in 2040 of the biogenic methane target to ensure its alignment with science and against progress of key trading partners
- No tax on agricultural methane emissions, as this would risk closing down farms, and send jobs and production overseas. Reductions in methane to meet the targets would be achieved in partnership and through industry leadership
- Processor incentives following the lead of companies like Fonterra and Silver Fern Farms
- Investigate a split gas target for all of New Zealand's future international climate change commitments
- Recognise and protect the importance of food production in New Zealand by better aligning domestic legislation with language in the Paris Agreement
To back the new target, the Government was already investing more than $400 million with industry to speed up the development and roll-out of methane-cutting tools. The first was expected to be on farms in 2026, with up to 11 available by 2030.
This included innovations like EcoPond, which cuts effluent pond emissions by more than 90%, alongside advances in genetics, feed and farm management.
"Technology has the potential to deliver emissions reductions, while enabling the sector to grow," Watts said. "It's expected that, if 30% of farmers take up the technologies expected to be available before 2030, total agricultural emissions could reduce by between 7-14% over the next decade.
"That's on top of any reduction in emissions that may come from efficiency gains on-farm or changes to farm systems.
"Our approach is clear – technology and partnership, not taxes, will deliver the reductions that we need. By investing in new tools and giving farmers practical support, we can cut emissions, without cutting production or profitability."
Swarbrick said the Government was hypercritical to flout a $400m investment to help farmers reduce agricultural emissions, after cutting the funding, which was established in 2022, by $48m.
The previous Labour government also took away $30m from the funding in August 2023.
'Long overdue'
Federated Farmers welcomed the policy as "long overdue" and said it would be well received by farmers.
"Kiwi farmers have been bogged down in completely unscientific, unaffordable and unrealistic climate policy for far too long," president Wayne Langford said.
"At times, it's felt like absolute madness that we'd even be talking about policies that would shut down farms, send production offshore and completely undermine New Zealand's economy."
Beyond the changes to the methane target, Langford praised the decision to rule out a tax on methane.
"Today, the Government has also categorically ruled out unfairly putting a price on agricultural emissions like methane," he said.
"This is a major step forward and will be a huge relief for farming families, who have had the threat of a massive tax hanging over our heads, threatening the viability of our businesses."
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