Oct 12 2021

October update

Reforming industrial allocation in the NZ Emissions Trading Scheme

The Ministry for the Environment (MfE) recently consulted on reforming some aspects of the industrial allocations. Industrial allocations are the ETS “free units” that fresh tomato, capsicum, and cucumber growers are eligible to apply for as a result of being moderately “Emissions Intensive Trade Exposed” industries as risk of “carbon leakage”.  “EITE” industries are those which spend a large portion of their revenue on energy and are at risk of local production being replaced by imports as the ETS unit price rises.

The consultation proposed review of:

  • Allocation calculations - how many free units growers would qualify for under the scheme
  • Eligibility criteria – which sectors can get free units
  • How data that determines allocation might need to be reported in the future
  • Whether there are other ways of supporting “EITE” businesses

 

We made a combined submission with Horticulture New Zealand and Vegetables New Zealand Inc.  Our points included:

  • The role of the industrial allocations in ensuring food security and retaining year-round greenhouse vegetable production in the medium term.
  • Information about “carbon leakage risks”.
  • Potential improvements for the design of the industrial allocation to enable investment by growers in their businesses for transition to low-emission fuel sources and energy efficiency improvements. 
  • The need for realistic timeframes that provide consistency and certainty for growers.

 

Please contact us if you would like to receive a copy of the submission.   MFE will now analyse the submissions received and related policy until end of 2021, with implementation of any policy changes not likely to come into effect until 2023/24 if approved by Cabinet.

 

Agrichemical compliance information poster

A TomatoesNZ “New Zealand residue compliance information for fresh greenhouse tomatoes 2021” poster was posted to members in September.  This replaces last year’s edition of the same poster. 

A spreadsheet (MS Excel) version is available electronically to members. Please get in touch if you would like the files, or for more copies of the poster. 

We recommend that growers dispose of the 2020 version of the compliance poster, as some of that information is now out of date.   If you have any suggestions for improving the format or information provided please let us know.