New Zealand proposes tax on livestock methane emissions from 2025

15/06/2022

The government in New Zealand is proposing new legislation to tax cow and sheep burps in an effort to combat greenhouse gas emissions.

Methane is a potent GHG but it stays in the atmosphere for a relatively short time, 10-12 years, before breaking down into water and CO2. However, with 10 million cattle and 26 million sheep, New Zealand’s agricultural sector faces a substantial extra cost if the proposed new tax comes into force in 2025. 

Incentives are planned for farmers to use feed additives in animals’ diets so as to reduce methane emissions. Some farmers are already experimenting with pink seaweed mixed into the feed.

Another solution is the use of face masks for cows that trap and turn methane into water and carbon dioxide. This method reduces emissions by more than 50% according to Zelp, one company that has developed a mask of this kind. 

A decision on the implementation of the tax is expected by the end of this year.