Emissions Trading Scheme
Businesses and consumers in New Zealand will be affected by the Emissions Trading Scheme (ETS) when carbon dioxide emissions start being priced in July 2010. This will affect our electricity prices, as well as petrol and diesel prices. The cost of gas, coal and steam used in our manufacturing plants will also increase.
Agricultural emissions (methane and nitrous oxide) enter the ETS in 2015, further increasing costs to farmers. In total farmers will face increased costs of approximately NZ$10,000 per farm from 2015. For Fonterra and our shareholders, the total cost of emissions under the ETS amounts to NZ$79 million in 2013, rising to NZ$115 million in 2015.
These costs will further increase Fonterra’s focus on reducing greenhouse gas emissions across our business below normal business levels.
We’ve been working with the New Zealand Government to ensure implementation of the ETS is as practical as possible. We will continue to work with Government when the ETS is reviewed in 2011, to ensure New Zealand’s climate change policy reflects growing world demand for efficiently produced food and addresses the risks posed by the ETS to our competitiveness.
Read media release on Emissions Trading Scheme
