Emissions Trading Scheme could put remaining greenhouse growers out of business

Changes to industrial allocation under the Emissions Trading Scheme could put remaining greenhouse tomato, cucumber and capsicum growers out of business.

‘Greenhouse growers are being penalised by the Emissions Trading Scheme,’ says Vegetables NZ chair, John Murphy.

‘Their increased energy efficiency and switch to sustainable fuels has changed the industrial allocation calculation. For one major greenhouse grower, this change will add an extra $200,000 to their Emissions Trading Scheme bill, over the current calendar year.  

‘The greenhouse industry was aware that the value of the industrial allocation would reduce over time. What it was not prepared for is the massive drop in allocation that the Ministry for the Environment is proposing, back dated to 1 January 2024.’

John says most North Island greenhouse growers have contracts for gas, so are locked in.

‘A delay of a year – to 1 January 2025 – would allow for these contracts to work their way through, as well as allow for the fuel switching programmes that are currently in progress to be rolled out.

‘As a country, we need to embrace efficient food production. We need to support investment in projects that reduce emissions, which is what greenhouse growers are already doing.

‘What they do not need is added cost that jeopardizes investment and the uptake of alternative heat sources.’    

John says like a lot of New Zealand businesses, vegetable growers are under immense pressure due to rising costs and inflation, but also due to uncertainty around resource management legislation.

‘Vegetables NZ believes that government policy should support food production in New Zealand. We are advocating for vegetable growing to become a permitted activity under new resource management legislation, so the industry can continue to provide New Zealanders with fresh, healthy food at reasonable prices and the country, with food security.’