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HomeNewsEnvironment‘Technology not taxes’ – Govt to lower 2050 methane target

‘Technology not taxes’ – Govt to lower 2050 methane target

Times Team
By Times Team
October 12, 2025
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Times photo Helena O’Neill

The Coalition Government has announced new science-based biogenic methane targets for 2050, promising a “practical, fair pathway” to cut emissions without harming farm productivity or exports.

The target — a 14–24 percent reduction below 2017 levels by 2050 — follows the findings of last year’s independent Methane Science Review and was approved by Cabinet this week.

Hon Todd McClay, Minister of Agriculture and for Trade and Investment, Hon Simon Watts, Minister of Climate Change, and Hon Andrew Hoggard, Minister of Biosecurity and for Food Safety, made the announcement today.

McClay said the Government had worked closely with the sector to find a balance between climate commitments and economic realities.

“We’ve accepted a range of advice and worked with industry to agree a practical target that protects food production whilst substantially reducing emissions, ” he said.

“Today we’re delivering a fair pathway that recognises New Zealand agriculture’s efficiency, protects jobs and production, and upholds our climate commitments.”

Watts said agriculture would continue to make a “fair contribution” to New Zealand’s goal of net zero by 2050.

“Technology has the potential to deliver emissions reductions while enabling the sector to grow,” Watts said. “Our approach is clear: technology and partnership, not taxes, will deliver the reductions we need.”

The Government confirmed there would be no tax on agricultural methane emissions, arguing it would risk “closing down farms and sending jobs and production overseas.”

Instead, reductions will be achieved through industry leadership, processor incentives, and government investment.

“It’s expected that if 30 percent of farmers take up the technologies expected to be available before 2030, total agricultural emissions could reduce by between 7 to 14 per cent over the next decade. That’s on top of any reduction in emissions that may come from efficiency gains on-farm or changes to farm systems,” Watts said.

More than $400 million is being invested with industry to speed up development and rollout of methane-cutting tools, with the first expected on farms in 2026 and up to 11 available by 2030.

A legislated review of the target will take place in 2040, and the Government will investigate a “split gas” approach in future international climate commitments.

Hoggard said it was “long overdue” to reconsider how methane’s short-lived warming impact is treated globally.

Farmers will also gain access to a new on-farm emissions calculator, launched today on the Ag Matters website.

McClay said the measures will support a sector that earns nearly $60 billion in export revenue and provides more than one in ten Kiwi jobs.

“By setting sensible targets and backing innovation, we’re ensuring New Zealand farmers remain world leaders in producing high-quality, sustainable food while meeting our international commitments,” he said.

  • Tags
  • Andrew Hoggard
  • Climate change
  • dairy farming
  • Farming
  • Methane
  • Minister of Agriculture
  • Minister of Biosecurity and for Food Safety
  • Minister of Climate Change
  • Simon Watts
  • Todd McClay
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