The New Zealand government has unveiled a plan to tax the greenhouse gases naturally emitted by livestock, a proposal designed to curb climate change.
The gases naturally emitted by New Zealand’s 6.2 million cows are among the country’s main environmental problems. The gases emitted by bovine flatulence have a high amount of methane gas, a potential pollutant, causing the Greenhouse Effect (GHG), and is also one of the main gases produced in human actions, including livestock, with flatulence and belching of animals.
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What is the purpose of the tax?
The purpose of the carbon tax on cattle emissions in New Zealand is to encourage the adoption of farming practices that reduce or direct emissions. This initiative aims to encourage New Zealand farmers to organize their production, plant adequate pastures nutritionally for animals, better feed their animals to limit flammable gases and adopt other responsible environmental practices.
The discussion around flatulence emitted by animals, especially cattle, is old. The raising of cattle on a large scale, large farms, may represent a potential for pollution, little imagined by their creators, but scientists around the world have been warning for a long time.
Which companies will be charged?
The carbon tax adopted in that country currently only applies to dairy farms. Companies or farms used to raise cattle for meat production and other agricultural properties will not be charged.
This first moment will be crucial to observe which changes will be made by rural producers. After that, the government reduced the rates, as well as expanding them to other productive activities.
What is the estimated revenue?
The government estimates that the new carbon tax will raise around NZ$4 million a year (in the country’s currency). This is paltry compared to other producer taxes, but it is intended to set a benchmark for other farms and encourage sustainable growth as the country strives to reduce greenhouse gas emissions.
Initially, percentages will be charged on production, but this measure may be changed over time. The main purpose of the fee is not collection per se, but to reduce GHG emissions in order to meet the global goal of reducing gas emissions.
How will the money generated be distributed?
The money raised by the carbon tax will be distributed to several initiatives related to the central idea of influencing the practices of producers to be more “friendly” with the environment. This will include benefits for improvements in production systems, research into new farming techniques and raising awareness of the impact of greenhouse gas emissions.
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