Sustainable Land Management and Climate Change

Details of Pillar 2 Public consultation meetings

February-March 2007

Pillar 2 in detail• Two key elements of Pillar 2:

– Reducing emissions (agriculture and deforestation)– Enhancing forest sinks

• Agriculture: – Limited solutions, but some solutions around nitrous oxide (strong

water quality co-benefits), – Also research, technology transfer, voluntary reporting

• Deforestation: – Difficult, but urgent (strong co-benefits in some areas)

• Afforestation: – Some good solutions available, building on PFSI (strong co-

benefits for sustainable land management)

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

Research, technology and voluntary reporting

1. ResearchResearch into

adaptation, mitigation and measurement technologies and

practices for methane and nitrous oxide

Figures from http://www.landcareresearch.co.nz

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

2. Technology transferUse of demonstration

farms to promote adoption of mitigation

technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

Research, technology and voluntary reporting

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

3. Voluntary reportingVoluntary

reporting of emissions at the

farm level

Research, technology and voluntary reporting

Methane

Nitrous oxide

Figure from http://www.landcareresearch.co.nz

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

Government pricing mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to

encourage the use of nitrogen inhibitors

Picture from http://www.atmosphere.mpg.de

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

Government pricing mechanisms

5. Charge on nitrogen fertiliser

Impose a charge on nitrogen fertilisers

Photo from www.digitalearth06.org.nz

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

Market-based mechanisms

6. Tradable permit regime for agriculture emissionsDevolution of agriculture

greenhouse gas emission obligations and permits to

farmers

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

Market-based mechanisms

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere

i.e. tree planting, biofuels etc

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

Regulation

8. RMA standards to control agricultural greenhouse gas

emissionsDevelopment of a National Environmental Standard to

control agricultural greenhouse gas emissions:

i.e. input and/or output controls

Photo from http://www.nscc.govt.nz

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

Land use change from forestry to agriculture

9. RMA standards to control new agricultural

land use after deforestation

Controlling the greenhouse gas emissions and other

effects arising from land use change from forestry to

agriculturePhoto from http://www.landcareresearch.cri.nz

9. RMA standards to control new agricultural land use after deforestation

Controlling the greenhouse gas emissions and other effects arising from land use change from

forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is

converted from forestry to agriculture

Government pricing mechanisms Market-based mechanisms

4. Incentive for nitrification inhibitors

Pay a financial incentive to encourage the use of nitrogen

inhibitors

6. Tradable permit regime for agriculture emissions

Devolution of agriculture greenhouse gas emission obligations and permits to

farmers

Price-based measures

5. Charge on nitrogen fertiliserImpose a charge on nitrogen

fertilisers

1. ResearchResearch into adaptation, mitigation and measurement technologies and practices

for methane and nitrous oxide

Research, technology transfer and voluntary reporting

2. Technology transferUse of demonstration farms to promote adoption of mitigation technologies e.g. nitrogen inhibitors, nutrient budgeting,

improved forage crops

3. Voluntary reportingVoluntary reporting of emissions at the

farm level

7. Offset schemes for agricultural emissions

Farmers required to offset emissions by emission reductions elsewhere i.e. tree

planting, biofuels etc

Regulation

8. RMA standards to control agricultural greenhouse gas emissions

Development of a National Environmental Standard to control agricultural greenhouse gas

emissions: i.e. input and/or output controls

LONG-TERM OPTIONS OPTIONS FOR ENCOURAGING EMISSIONS REDUCTIONS NOW

Options focusing on land use change from forestry to agriculture

Overview of possible Pillar 2 options for agriculture (page 43)

Land use change from forestry to agriculture

10. Charge where deforested land is used for agriculture

Impose a charge on agriculture emissions created when land is converted from forestry

to agriculture

Kyoto Rules for Forests

Planting Harvesting Deforestation

(change of land use)

Pre-1990 No credits No cost Cost

Post-1990 Credits ( retained by Government)

Cost (retained by Government)

Cost (retained by Government)

Incentives

1. Afforestation Grants Scheme (AGS)Pay grants to growers who plant new post-

2007 forests

Price-based measures

1. Flat charge on land use change from forestry to another use

Impose flat charge on deforestation of non-Kyoto forests

2. Tradable permit regime Government allocates tradable

deforestation permits; forest owners who deforest non-Kyoto forests are

liable for emissions above the level of permits they hold

2. Choice between AGS and devolution of sinks & liabilities

Give each grower the choice to receive the relevant sink credits and liabilities or seek a

grant under the AGS

AFFORESTATION OPTIONS

Regulation

4. RMA options Use RMA to control deforestation

3. Centrally determine deforestation levels option

Pass new legislation to limit rates of deforestation of non-Kyoto forests (national

deforestation limit)

DEFORESTATION OPTIONS

Overview of possible Pillar 2 forestry options (pages 57 & 62)

Market-based measures

Government pricing measures

Afforestation options

1. Afforestation Grants Scheme (AGS)

Pay grants to growers who plant new post-

2007 forests

Incentives

1. Afforestation Grants Scheme (AGS)Pay grants to growers who plant new post-

2007 forests

Price-based measures

1. Flat charge on land use change from forestry to another use

Impose flat charge on deforestation of non-Kyoto forests

2. Tradable permit regime Government allocates tradable

deforestation permits; forest owners who deforest non-Kyoto forests are

liable for emissions above the level of permits they hold

2. Choice between AGS and devolution of sinks & liabilities

Give each grower the choice to receive the relevant sink credits and liabilities or seek a

grant under the AGS

AFFORESTATION OPTIONS

Regulation

4. RMA options Use RMA to control deforestation

3. Centrally determine deforestation levels option

Pass new legislation to limit rates of deforestation of non-Kyoto forests (national

deforestation limit)

DEFORESTATION OPTIONS

Overview of possible Pillar 2 forestry options (pages 57 & 62)

Market-based measures

Government pricing measures

Afforestation options

2. Choice between AGS and devolution of sinks & liabilities Give each grower the choice to receive the relevant sink credits

and liabilities or seek a grant under the AGS

Incentives

1. Afforestation Grants Scheme (AGS)Pay grants to growers who plant new post-

2007 forests

Price-based measures

1. Flat charge on land use change from forestry to another use

Impose flat charge on deforestation of non-Kyoto forests

2. Tradable permit regime Government allocates tradable

deforestation permits; forest owners who deforest non-Kyoto forests are

liable for emissions above the level of permits they hold

2. Choice between AGS and devolution of sinks & liabilities

Give each grower the choice to receive the relevant sink credits and liabilities or seek a

grant under the AGS

AFFORESTATION OPTIONS

Regulation

4. RMA options Use RMA to control deforestation

3. Centrally determine deforestation levels option

Pass new legislation to limit rates of deforestation of non-Kyoto forests (national

deforestation limit)

DEFORESTATION OPTIONS

Overview of possible Pillar 2 forestry options (pages 57 & 62)

Market-based measures

Government pricing measures

Government pricing mechanisms

1. Flat charge on land use change from forestry to

another use Impose flat charge on deforestation of non-

Kyoto forestsPicture from Google Earth

Incentives

1. Afforestation Grants Scheme (AGS)Pay grants to growers who plant new post-

2007 forests

Price-based measures

1. Flat charge on land use change from forestry to another use

Impose flat charge on deforestation of non-Kyoto forests

2. Tradable permit regime Government allocates tradable

deforestation permits; forest owners who deforest non-Kyoto forests are

liable for emissions above the level of permits they hold

2. Choice between AGS and devolution of sinks & liabilities

Give each grower the choice to receive the relevant sink credits and liabilities or seek a

grant under the AGS

AFFORESTATION OPTIONS

Regulation

4. RMA options Use RMA to control deforestation

3. Centrally determine deforestation levels option

Pass new legislation to limit rates of deforestation of non-Kyoto forests (national

deforestation limit)

DEFORESTATION OPTIONS

Overview of possible Pillar 2 forestry options (pages 57 & 62)

Market-based measures

Government pricing measures

Market-based mechanisms

2. Tradable permit regime

Government allocates tradable deforestation

permits; forest owners who deforest non-Kyoto forests

are liable for emissions above the level of permits

they holdPicture from Google Earth

Incentives

1. Afforestation Grants Scheme (AGS)Pay grants to growers who plant new post-

2007 forests

Price-based measures

1. Flat charge on land use change from forestry to another use

Impose flat charge on deforestation of non-Kyoto forests

2. Tradable permit regime Government allocates tradable

deforestation permits; forest owners who deforest non-Kyoto forests are

liable for emissions above the level of permits they hold

2. Choice between AGS and devolution of sinks & liabilities

Give each grower the choice to receive the relevant sink credits and liabilities or seek a

grant under the AGS

AFFORESTATION OPTIONS

Regulation

4. RMA options Use RMA to control deforestation

3. Centrally determine deforestation levels option

Pass new legislation to limit rates of deforestation of non-Kyoto forests (national

deforestation limit)

DEFORESTATION OPTIONS

Overview of possible Pillar 2 forestry options (pages 57 & 62)

Market-based measures

Government pricing measures

Regulation

3. Centrally determine deforestation levels

option Pass new legislation to

limit rates of deforestation of non-

Kyoto forests (national deforestation limit)

Picture from http://icm.landcareresearch.co.nz

Incentives

1. Afforestation Grants Scheme (AGS)Pay grants to growers who plant new post-

2007 forests

Price-based measures

1. Flat charge on land use change from forestry to another use

Impose flat charge on deforestation of non-Kyoto forests

2. Tradable permit regime Government allocates tradable

deforestation permits; forest owners who deforest non-Kyoto forests are

liable for emissions above the level of permits they hold

2. Choice between AGS and devolution of sinks & liabilities

Give each grower the choice to receive the relevant sink credits and liabilities or seek a

grant under the AGS

AFFORESTATION OPTIONS

Regulation

4. RMA options Use RMA to control deforestation

3. Centrally determine deforestation levels option

Pass new legislation to limit rates of deforestation of non-Kyoto forests (national

deforestation limit)

DEFORESTATION OPTIONS

Overview of possible Pillar 2 forestry options (pages 57 & 62)

Market-based measures

Government pricing measures

Regulation

4. RMA options Use RMA to control deforestation