Dairy Processors Support Policy Framework
DCANZ - which represents New Zealand's dairy processing companies - has commended the Government on delivering its
policy framework for an emissions trading system.
"Deferring agriculture's entry into an emissions trading scheme correctly recognises the limited cost-effective tools
currently available to reduce agricultural emissions," says DCANZ chairman Earl Rattray.
"This is a good starting point and we are pleased the Government has recognised that the agriculture sector needs more
time to develop practical ways to reduce greenhouse gases before it is included in an emissions trading scheme."
Mr Rattray says the industry and Government are committed to working together on resolving any outstanding issues around
the scheme.
"Despite the deferred entry for agriculture into the announced emissions trading scheme, New Zealand dairy processors
and exporters face a real risk to our global competitiveness because our overseas competitors do not face greenhouse gas
emissions related costs."
DCANZ welcomed the Government's recognition of competitiveness at risk issues via the gratis allocation for eligible
companies and noted this offset at 90% of 2005 emissions levels.
"Nothing would be gained by adding costs onto the New Zealand dairy industry when it operates in accordance with world's
best practice, if it results in emissions leakage to less efficient producers elsewhere in the world."
Mr Rattray says the dairy industry is committed to using this transition period to continue working with Government and
others to find practical solutions to reduce agriculture's greenhouse gases and help farmers implement these tools as
they become available.
ENDS