The Coalition Government has confirmed science-based biogenic methane targets for 2050, providing farmers and exporters with a clear and practical pathway to reduce emissions while maintaining productivity and global competitiveness.
Following Cabinet approval, the 2050 target will be set at 14–24% below 2017 levels. The range reflects the findings of the independent 2024 Methane Science Review.
Agriculture and Trade and Investment Minister Todd McClay says the target strikes the right balance between environmental responsibility and economic resilience.
“We have carefully considered the science and worked closely with industry to agree on a practical and fair target. It protects food production, supports jobs, and recognises the efficiency of New Zealand agriculture, while ensuring we continue to meet our climate commitments,” Todd says.
Climate Change Minister Simon Watts says the Government remains committed to achieving net zero emissions by 2050.
“Agriculture will continue to make an important and equitable contribution to that goal. This target provides clarity and certainty about the sector’s role in meeting our domestic and international obligations,” he says.
Alongside the new target, the Government has confirmed several additional policy decisions:
- A legislated review of the biogenic methane target in 2040 to ensure it remains aligned with science and reflects the progress of key trading partners,
- No tax on agricultural methane emissions. The Government says pricing agricultural methane risks driving production offshore and undermining rural communities. Instead, reductions will be achieved through partnership, industry leadership, and processor incentives, building on initiatives from companies such as Fonterra and Silver Fern Farms,
- Investigation of a split-gas target approach for New Zealand’s future international climate commitments,
- Better alignment of domestic climate legislation with the Paris Agreement’s recognition of the importance of food production.
To support delivery of the target, the Government is investing more than $400 million alongside industry to accelerate the development and rollout of methane-reducing technologies. The first tools are expected to be available on farms from 2026, with up to 11 options projected by 2030.
These include innovations such as EcoPond, which reduces effluent pond emissions by more than 90%, alongside advances in genetics, feed additives and farm management systems.
Simon Watts says technology adoption will play a central role. “If 30% of farmers adopt the tools expected to be available before 2030, agricultural emissions could reduce by between 7 and 14 per cent over the next decade. That is in addition to reductions achieved through efficiency gains and system improvements on-farm.”
He says decisions on how to meet emissions commitments will remain with farmers, processors and businesses. “Each will be able to choose the tools and innovations that best suit their operations.”
Biosecurity and Food Safety Minister Andrew Hoggard says the Government has formally recognised the short-lived nature and different warming impact of methane in domestic policy settings.
“It is timely to consider whether this differentiated approach should also be reflected in our future international commitments,” Andrew says.
To support on-farm decision-making, the Government has also released a new on-farm emissions calculator, available from today through the Ag Matters website. The tool will help farmers measure methane emissions and assess reduction options without compromising productivity.
“Our approach is clear — partnership and technology, not taxes,” Simon says. “By investing in innovation and supporting practical solutions, we can reduce emissions while safeguarding production and profitability.”
The announcement follows recent legislation that limits full-farm forestry conversions to the Emissions Trading Scheme, part of a broader reset of climate policy aimed at restoring balance and certainty for rural New Zealand.
Todd McClay says the primary sector remains central to New Zealand’s economic success.
“Our primary sector generates nearly $60 billion in export revenue and supports more than one in ten New Zealand jobs. By setting sensible targets and backing innovation, we are ensuring our farmers remain global leaders in producing high-quality, safe and sustainable food, while meeting our climate commitments.”
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