This Order is made under section 2A(5D)(a) of the Climate Change Response Act 2002 and defers the application of Subpart 4 of Part 5 of Schedule 3 of the 2002 Act (which relates to animals–farmer activities) from 1 January 2024 to on and after 1 January 2026.
Schedule 3 of the Act outlines the activities that are included in New Zealand’s emissions trading scheme. Subpart 4 of Part 5 of Schedule 3 relates to animal farmer activities specifically (namely, farming, raising, growing, or keeping ruminant animals, pigs, horses, or poultry for reward or trade).
The application of emissions trading for animal farmer activities is affected by section 219 of the Act, under which a person is not liable under the Act to surrender units for their emissions in the first year in which the activities outlined in subpart 4 of Part 5 of Schedule 3 of the Act applies.
In effect, this means that the units for the emissions trading scheme for animal farmer activities will only need to start being surrendered from January 1 2027 onwards.