Agricultural emissions reduction – developing the Agricultural Emissions Pricing System
a) relevant institution/s for each project.
The Ministry for Primary Industries (MPI), Ministry for Environment (MFE) and Inland Revenue
Department (IRD) have received funding for the Agricultural Emissions Pricing (AEP) Programme.
(b) Brief summary and timeline of each project and the projects intended outcome.
The Agricultural Emissions Pricing programme has been funded to continue the development of the
Government’s recommended agricultural greenhouse gas emissions pricing system.
In 2022/23 the programme received funds for essential development work necessary to support and
enable decisions on the options for the implementation of the agricultural emissions pricing scheme.
The programme received funding in 23/24 to continue the work.
A reporting and pricing system is in place along with legislation and regulations which incentivise
reductions in agriculture emissions.
(c) Terms of reference/funding scopes developed to date, for organisations who apply for funding
under these schemes.
The AEP Programme does not currently include a funding or grant-based scheme.
Agriculture: Accelerating development of greenhouse gas mitigations
a) relevant institution/s for each project.
MPI, in partnership with the New Zealand Agriculture Greenhouse Gas Research Centre (NZAGRC) and
AgriZeroNZ this is an industry government joint venture established to drive the commercialisation of
mitigation solutions.
(b) Brief summary and timeline of each project and the projects intended outcome.
under the Official Information Act 1982
The programme has been funded to accelerate development and uptake of high impact agricultural
mitigation technologies. More specifically, the programme funding is intended to deliver Focus Area
Two of the Agriculture Chapter of the Emissions Reduction Plan, and contribute to the fol owing
outcomes:
• Multiple adoptable mitigation solutions are available to farmers to meet legislated emissions
reduction targets.
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• A greater proportion of early-stage research, including mātauranga solutions, is progressing
to viable solutions, and these solutions are spread across a range of farm system types.
• The emissions reduction effect/impact of all adoptable solutions is included in official
greenhouse gas (GHG) inventory figures within 2 years of the solutions being available to
purchase & use on-farm.
• The tools and practices developed can be exported and utilised international y.
The Government has committed to long term funding of the programme recognising the challenge,
scale and scope of the R&D required to deliver the tools to farmers. The programme will be delivered
through five core sub programmes:
Strengthening Agriculture GHG mitigation R&D – To accelerate the availability and uptake of new
mitigations and get mitigations to producers sooner and establishing a new Centre for Climate Action
on Agricultural Emissions to drive a step change in research, development and commercialisation of
emissions reduction technologies.
Māori led innovation and mātauranga Māori-based approaches - Supporting Māori-led responses to
climate change by investing in the Māori primary sector’s capability and capacity to test, develop and
deliver low emissions and climate resilient solutions.
Ensuring Effective Regulatory pathways - Streamlined path to market through regulatory and
greenhouse gas inventory processes, and active support of developers. This is through ensuring
relevant regulatory regimes can meet the new demand generated by the accelerated development of
mitigations, proactive development of pathways to account for new mitigations, and active and direct
engagement with researchers and developers of mitigations.
International Partnerships - Sustaining current targeted funding to the Global Research Alliance on
Agricultural Greenhouse Gases (GRA) to continue international cooperation, capability building and
investment in research to mitigate and reduce the effect of agricultural greenhouse gas emissions and
engage internationally to establish internationally agreed residue limits for inhibitors in food
products.
Leadership, Coordination and Monitoring - To ensure effective delivery / implementation of the CERF
programme as a whole, in line with the CERF budget initiative, the Agriculture chapter of the first
Emissions Reduction Plan and the Biological Emissions Reduction Science and Mātauranga Plan.
(c) Terms of reference/funding scopes developed to date, for organisations who apply for funding
under the Official Information Act 1982
under these schemes.
Programme Early Investments
MPI established an early investment process for the first year of the programme. Early investments
are those that are made in advance of the AgriZeroNZ, the Centre Joint Venture (JV) being operational,
and enhancements made to the existing NZAGRC (part of the centre establishment phase).
A robust and transparent decision-making process was used to guide these early investments, until
such time as the JV and
Released an enhanced NZAGRC is operational and can establish its own investment
framework.
An expressions of interest application process was used by funding requester’s applying under the
early investment process. An Early Investment Advisory Panel (EIA Panel) was established to help
advise MPI decision-makers on early investment applications. This panel was made up of mainly
external industry agribusiness professionals and agricultural and greenhouse gas research subject
matter experts.
Seven Assessment Criteria were used to guide early investment decisions:
1. Sustainable Benefits to New Zealand - will the programme deliver significant short or long-
term economic, environmental, social, or cultural benefits to NZ?
2. Case for government funding - will government co-investment reduce programme risks,
increase scale, or accelerate benefits to NZ that would not otherwise be achieved?
3. Approach or Methodology - does the approach or methodology make sense, and is fit-for-
purpose? Is an appropriate science provider/partner or research organisation involved?
4. Ability to deliver - does the applicant have the appropriate team and capability to deliver the
programme workstreams? Are you confident that the target benefits for NZ wil be achieved?
5. Budget and co-investment - Is there a suitable level of funding from industry co-investors? Do
you have any concerns with the indicative programme budget?
6. Greenhouse gas (GHG) reduction Impact – enable or direct contribution. It should be clear
from the proposal where the work sits on the ‘pathway to impact’ of reducing agricultural
GHG emissions. Is it a direct contributor to or enabler of NZ agricultural GHG reduction?
7. Risk identification and mitigation - What are the key risks, issues, or assumptions? Are they
adequately addressed in the EOI or Business Case?
The Early Investment Application Process has now ended.
Please visit the following link which outlines the projects that have been publicly announced and
funding committed through the early investment programme. This list is updated as investments have
been approved by MPI and made public
https://www.ccaae.govt.nz/projects/.
Increased GHG Inventory Research Fund
The CERF programme provided increased funding for the GHG Inventory Research (GHGIR) fund ($7
million over four years). This fund aims to improve the reporting of greenhouse gas emissions from
agriculture, forestry, and other land use. For more information see
https://www.mpi.govt.nz/funding-
rural-support/environment-and-natural-resources/greenhouse-gas-inventory-research-fund/
under the Official Information Act 1982
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Agriculture: Supporting producers and Maori entities
to transition to a low emissions future
a) relevant institution/s for each project.
The project sits within the Agriculture and Investment Services business unit, in the Māori
Agribusiness directorate. The Climate and water team within the directorate is leading the project.
(b) Brief summary and timeline of each project and the projects intended outcome.
This initiative ensures farmers, growers and whenua Māori entities (producers) can access support
and have the confidence to move to low emissions farm systems. It funds tikanga-based programmes
to develop and support long-term low emissions profiles for whenua Māori. The tikanga-based
programmes wil be designed by Māori, with support from MPI, and supported by rohe-based Māori
kaiārahi (pathfinders) to pilot and support implementation for whenua Māori. The initiative started in
July 2022 and is scheduled to continue until June 2026 for the four-year budget al ocation.
The project funds access to credible information and communications to help shift attitudes. It will
increase on-the-ground and on-farm activities aimed at helping producers change farm practices and
adopt new technologies, including through local producer groups focused on reducing emissions.
(c) Terms of reference/funding scopes developed to date, for organisations who apply for funding
under these schemes.
The Terms of reference are still being worked on. Therefore, we cannot provide this information with
reference to section 9(2)(g)(i) of the OIA.
under the Official Information Act 1982
Released
Forestry: Increasing woody biomass supply to replace
coal and other carbon intensive fuels and materials
a) relevant institution/s for each project.
The Increase Woody Biomass Supply Programme sits within the Operational Programme Delivery
Directorate of the Te Uru Rākau New Zealand Forest Service Branch of MPI. The Programme contains
three main workstreams: Planting, Research and Workforce Capacity.
(b) Brief summary and timeline of each project and the projects intended outcome.
Projections show New Zealand will face woody biomass shortages by 2030, because of sharply rising
demand as efforts to reduce carbon emissions from fossil fuels pick up pace. This initiative increases
biomass supply and stimulates private sector investment to al eviate projected shortages, through
Crown planting 10,000ha* of short rotation energy forest, and targeted research and development.
The initiative will help transform forestry and wood processing to a high-value, high wage sector.
Main outcomes:
• Will directly reduce emissions by contributing biomass from up to 10,000 ha of new short
rotation forests (16 years rotation) to increase the availability of supply of woody biomass for
process heat applications which formerly relied on coal.
• A research programme that assists with identifying technologies and strategies to optimise
removal and utilisation of woody residue from forests.
• The combined components aim to directly contribute to biomass supply by demonstrating the
viability of planting forests for woody biomass and indirectly increase supply, by broadening
the evidence base for bioenergy forestry and identifying techniques for the safe and
economic recovery of harvest residues.
• A capable and well-trained workforce across all roles supporting the growing, harvesting and
processing of woody biomass.
*Original initiative was intended to plant 10,000ha, however this was subsequently revised to
5,000ha following Ministerial direction.
under the Official Information Act 1982
Timeline
2022/23
2023/24
2024/25
2025/26
Planting
• Confirm
• Identify and
• Continue land
• Complete land
10,000ha
investment
contract land.
acquisition.
acquisition.
framework.
• Commence
• Continue land
• Continue land
• Milestone:
land
preparation
preparation
Develop
preparation
activity.
and planting
Released promotion and forest • Ramp up
(continuing in
approach.
planning.
planting
outyears).
• Identify
Possibility for
programme.
• By Q3 10,000ha
potential
some initial
• By Q3 3,500ha
contracted
partners,
planting.
contracted
begin
• 500ha
discussions.
contracted and
report back to
Ministers on
Phase Two
funding.
Research
• Agree
• Initial Research • Research
• Research
Research
delivered and
delivered.
delivered.
programme.
outcomes
• Review research • Publish
• Research
received.
plan.
research
Plan
• Review
• Publish research
findings.
developed
research plan.
findings.
and finalised. • Publish
• Begin to
research
commission
findings.
research.
Workforce
• Draft
• Design of
• Implementation • Evaluation of
Workforce
initiatives to
of initiatives to
initiatives.
Plan.
support
support
• Further roll out
• Planning on
workforce
workforce
of successful
sector
development.
development.
workforce
initiatives
initiatives.
from the
Workforce
Plan.
(c) Terms of reference/funding scopes developed to date, for organisations who apply for funding
under these schemes.
The planting workstream does not include a funding or grant-based scheme. Crown Forestry does
however have high level search parameters it is using to identify land suitable for planting. This
includes land that must be owned by the party looking to enter a joint venture; it must be in one of
under the Official Information Act 1982
the high priority areas (Otago, Canterbury, or Southland), it must be wel connected to road networks
and ideally have at least 200 plantable hectares.
A MPI Forestry Science and Research Panel is used for the procurement of the forestry research. This
is using a standard competitive market process and is managed through commercial contracts. The
panel covers a wide range of forestry related research capabilities informed by the research
programmes.
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Forestry: Maximising carbon storage, increasing natural sequestration to achieve New Zealand's
future carbon goals
a) relevant institution/s for each project.
This programme is led by Te Uru Rākau – New Zealand Forest Service within MPI. The programme is
part of a joint agency budget bid between MPI, MfE and Department of Conservation (DOC) in the
Maximising Carbon Sequestration initiative, to maximise natural carbon sequestration:
● Maximising Forest Carbon – Te Uru Rākau – New Zealand Forest Service
● Maximising Carbon in Mineral Soils – Ministry for the Environment
● Maximising Carbon in Native Systems – Department of Conservation
● Wood Processing Growth Fund (WPGF) – Te Uru Rākau – New Zealand Forest Service
(b) Brief summary and timeline of each project and the projects intended outcome.
The Maximising Forest Carbon includes:
• A four-year (2022 to 2026) research, science, and policy programme to improve our current
knowledge of carbon dynamics and the impact of forest management activities on carbon
stocks.
• A fund to catalyse and accelerate investment from the private sector into new long-lived
wood processing equivalent to one million cubic metres of annual log input capacity. The
WPGF is divided into two distinct funding streams:
a. The ‘Catalyst’ programme, co-funding investment-enabling activities (such as
business cases, feasibility studies) ongoing until 2026/27, with additional funding
approved for outyears; and
b. The ‘Accelerator’ programme delivering debt and equity for capital co-investment
alongside private capital, to be provided in three distinct funding rounds during 2023
– 2026.under the Official Information Act 1982
Main outcomes
• To identify improved methods for measuring forest carbon sequestration that increase
accuracies and efficiencies for landowners and forest managers and for our national accounts
reporting.
• To understand the link between improved forest management activities and additional
carbon sequestration.
• To increase our confidence in the alignment between the Emissions Trading Scheme (ETS)
and the ‘credit
Released ing’ of forests against our climate change targets.
• To catalyse and accelerate investment from the private sector into new long-lived wood
processing equivalent to one million cubic metres of annual log input capacity.
Timeline
2022/23
2023/24
2024/25
2025/26
Research and • Agreed to
• Collect data
• Collect data on • Determine if
Science
the Science
from priority
the effects of a
change in
Plan.
sites and forest
range of forest
carbon can be
• Establish a
types.
management
measured due
science
• Test alternative
activities.
to forest
procurement
carbon
management
panel.
measurement
activities.
• Gather
methodologies.
existing
research and
science.
• Determine
research
priorities.
Policy and
• Progress
• Understand
• Progress
• Implementation
Incentives
development
the barriers
development of
of regulations
of
and
regulations for
for new and
regulations
opportunities
new and
updated yield
for new and
for P90
updated yield
tables.
updated
Forests.
tables.
yield tables.
• Identify
• Determine if
potential
active
incentives and
management of
interventions
forests can
for P90 forests.
improve carbon
• Assess
sequestration.
alternative
options for
carbon
under the Official Information Act 1982
measurement
methodologies.
Carbon
• Undertake
• Assess ability
• If viable,
• Implementation.
Measurement
trial of
for remote
establish an
Technology
remote
sensing
implementation
sensing
technology to
plan for
Released technology be used in the alternative
for
Emissions
methods of
measuring
Trading
measuring
carbon in
Scheme.
carbon
forests.
sequestration.
Investment in • Establish the • Run round 1
• Run round 3 of • Fund feasibility
wood
fund.
and 2 of capital
capital funding
studies and
processing
funding through
through the
business cases
the Accelerator.
Accelerator.
through the
• Fund feasibility • Fund feasibility
Catalyst.
studies and
studies and
business cases
business cases
through the
through the
Catalyst.
Catalyst.
• Evaluate
progress and
report back to
Cabinet.
(c) Terms of reference/funding scopes developed to date, for organisations who apply for funding
under these schemes.
The programme includes a funding / grant-based scheme, the Wood Processing Growth Fund (WPGF).
The investment framework was agreed by Cabinet in April 2023.
A MPI Forestry Science and Research Panel is used for the procurement of the forestry research. This
is using a standard competitive market process and is managed through commercial contracts. The
panel covers a wide range of forestry related research capabilities informed by the research
programmes.
under the Official Information Act 1982
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Forestry: Establishing native forests at scale to
develop long-term carbon sinks and improve
biodiversity
a) relevant institution/s for each project.
The Native Afforestation Programme sits within the Operational Programme Delivery Directorate at
Te Uru Rākau - New Zealand Forest Service (TUR-NZFS) branch of MPI. The programme contains
workstreams within other directorates at TUR-NZFS, and within the Policy and Trade department at
MPI.
(b) Brief summary and timeline of each project and the projects intended outcome.
The Native Afforestation Programme was funded to remove barriers for native afforestation by
increasing propagation capacity, using automated technology to scale up native seedling production
and reduce costs, facilitates innovation in seed collection, propagation and forest establishment
including restoration through focused research. Develop a long-term national strategy and action plan
to grow native forests, in partnership with rural landowners, iwi/Māori, foresters, communities and
the private sector.
The intended outcome of this initiative is to increase establishment of native forests at scale, to
develop long-term carbon sinks and improve biodiversity.
CERF funding for the Native Afforestation initiative was provided for 4 years, with the following
progress indicators being progressed:
•
Development of investment options to remove barriers to native afforestation by March
2024.
•
Delivery of research and science projects as per the research plan by June 2026, with
commissioned of projects currently being undertaken.
•
Development of a current state, future state, and implementation plan to address
barriers in the nursery sector by June 2024. Implementation of these plans will occur in
the remaining years of the programme.
•
Development of a long-term strategy and action plan for native afforestation by June
2024.
•
Development of a Māori-crown partnership and engagement strategy by December 2023,
under the Official Information Act 1982
with implementation to occur in the remaining years of the programme.
(c) Terms of reference/funding scopes developed to date, for organisations who apply for funding
under these schemes.
The Native Afforestation Programme does not currently include a funding or grant-based scheme. We
therefore do not have any terms of reference or funding scopes for organisations to apply for funding.
Released
A MPI Forestry Science and Research Panel is used for the procurement of the forestry research. This
is using a standard competitive market process and is managed through commercial contracts. The
panel covers a wide range of forestry related research capabilities informed by the research
programmes.
