Big cost in current ETS laws

Dairy production in NZ may be reduced by 5%, costing the economy $650 million annually, and allowing other countries to fill the gap in global supply risking further global emissions growth, unless the existing Emissions Trading Scheme (ETS) is altered. Fonterra CEO Andrew Ferrier, presenting the dairy co-operative's submission to the Emissions Trading Scheme Review Select Committee, said that global emissions would increase if a greater proportion of dairy products is produced by countries where production is less carbon efficient than NZ . "If the NZ dairy sector is exposed to an emissions price before our competitors and before cost-effective technology is developed to help us reduce emissions from the dairy supply chain, its international competitiveness will be compromised, allowing less greenhouse gas-efficient producers in other countries to fill the gap in global supply. "What is the point in NZ losing out economically for no potential global atmospheric gain?" Including livestock emissions in an Emissions Trading scheme, especially while no other country does, places the sector at enormous risk, M&WNZ and the Meat Industry Association will tell the ETS Select Committee .The two organisations will appear before the select committee at lunchtime on Monday and will outline the implications of keeping the existing Climate Change Response Act.  They say there will be significant financial, environmental and social impacts if the legislation doesn't change. M&WNZ Chairman, Mike Petersen said two farmer case studies would be presented to the committee and they would highlight that the legislation as it stands, would reduce farm profitability significantly. "The carbon costs in 2013 for these two farming families, Sarah and Sam Von Dadelszen of Hawkes Bay and Julie and David Marshall of Southland, would add a new stream of cost "“ similar to what they pay for rates and electricity now.  And that's only in year one - things get much worse from there."