Farmers told to prepare for ETS

Farmers need to start preparing their business for the emissions trading scheme (ETS) now, rather than wait for new technologies to be developed. PricewaterhouseCoopers (PWC) climate change team partner Chris Taylor told Rural News there is little in the way of concrete action farmers can currently take because the technology is not available. There are areas they can look at well before agriculture comes into ETS in 2015. "˜While we don't know everything yet, what we do know is they will be facing increased input costs, as the cost of fuel and electricity will rise. "˜They might want to consider reducing their reliance on electricity and look at other options such as self-generation. Taylor says farmers should be pleased that not only has agriculture's inclusion in the ETS been delayed until 2015, but the phase-in period is also a lot kinder. "˜It's recognition of the limited abatement options that are currently available to farmers. That's why the point of obligation has been set at processor level rather than let it rest with individual farmers. Taylor says before farmers go out and plant trees or clear forests they will need to have a clear understanding of what they have to gain or lose. "˜Anyone intending to deforest needs to be very careful as while exemptions are available, there are big financial implications if you get it wrong. Taylor says New Zealand's move to set up a global research alliance to examine how greenhouse gases from agriculture can be cut is a good one. He says the Government has appointed former MP and PWC climate change consultant Simon Upton to investigate how this can be done. "˜Simon's very excited about the role he's been given and he should be. New Zealand has a lot to gain or lose with this.