The Climate Change Response (Zero Carbon) Amendment Act 2019 provides a framework for New Zealand to develop and implement clear and stable climate change policies that:
One outcome of the Act was the creation of the Climate Change Commission who have recently presented their final report.
Based on the recommendations of the report, the Government will set a series of goals for the reduction of carbon emissions over the next three decades. These include achievement of a 10% reduction in biogenic methane emissions by 2030 and a net zero carbon emission by 2050.
Exact details of how this will impact the agricultural sector are not yet confirmed however, steps have been taken by the sector to identify initiatives to reduce net carbon emissions. He Waka Eke Noa / Our Future in Our Hands is one of the groups focusing on this issue with Irrigation NZ one of the members. He Waka Eke Noa / Our Future in Our Hands is committed to working with Government to establish realistic, informed decisions to achieve the objectives of net carbon emission reduction without compromising the economic viability of the sector.
As part of the programme of work they have identified two goals. These include:
We have undertaken an initial assessment of CPWL’s carbon footprint using the ACE GHG estimation tool developed by Catalyst Ltd.
Some of the inputs considered included:
Based on the data available to date, CPWL is projected to have emitted approximately 2,000 t CO2e in the ten months between July 2020 and April 2021.
Due to the recruitment of the Operational Team part way through the 2020 – 2021 year, the figures for vehicle travel will increase in the forthcoming years increasing the overall annual footprint to approximately 2500 t CO2 e.
The estimated 2000 t/CO2e (CO2 equivalent) for CPWL’s footprint in the 2020 /2021 season is a benchmark against which future options to reduce emissions will be measured.
The current spot price for 1 NZU (often referred to as a carbon credit and equivalent to 1 tonne CO2 Equivalent) is $37.00. At present there is no requirement for CPWL to pay a carbon tax however, if we were, our current emissions translate to an overall potential liability of approximately $74,000. This figure will rise to around $93,000 at 2021 NZU prices in coming years. This equates to approximately $2 per share or 0.15kg CO2 e per cubic metre of water delivered.
CPWL will continue to measure and report carbon emissions. This will assist shareholders in understanding their own farm emissions and assist CPWL to identify ways of reducing our emissions in compliance with the anticipated reductions set by Government.
A number of initiatives will be considered to help reduce the size of our footprint including:
Offsetting activity will also be considered. Using published guidance, 9000 native trees and shrubs will need to be planted annually to offset 2000t.
Information gathered will enable the inclusion of a carbon “cost” in the “on farm” carbon accounting required in the next four years.
Future developments in measuring the CPWL footprint will consider the inclusion of the supply chain footprint (where possible) and the extended footprint arising from staff personal travel to and from work. Inclusion of these will more accurately reflect CPWL’s true footprint.