NZ Government announces $370 million plan to help farmers reduce emissions

Thanks for reading our Snippets newsletter this week. We have once again included a mixed selection of articles we hope you find interesting.

The NZ Government recently announced a $370 million plan to help farmers reduce emissions which will see a system introduced to measure and price emissions at the farm level. The European Union has introduced a new soil monitoring law, aiming to boost ailing soil quality – soil that is absolutely crucial to life on earth. Trust in carbon offsets has taken a hit in recent months, and we examine some guidelines designed to help navigate the space. We take a look at a new global benchmark which defines ‘high quality ‘offsets and also what investors should be looking for in the offsets space.

Genesis Energy appears to be taking the lead on solar farms in NZ with some big projects in the pipeline, with other NZ energy retailers following closely behind and jumping on the solar bandwagon. Deep sea mining is in the news again, as questions are raised as to whether it is necessary to meet soaring lithium demand – but the potential environmental damage is substantial. China is eyeing up the massive lithium resource in Afghanistan and is looking to work with the Taliban to secure it. We finish up this week with a look at regenerative tourism, which goes beyond ecotourism and sustainable tourism by actively engaging visitors in restoring resources to their natural state.

We open with the announcement of a $370M financial package aimed at helping NZ farmers reduce greenhouse gas emissions. It will see a system introduced to measure and price emissions at a farm level – with mandatory reporting to begin in 2024.This is to better position farmers to meet the changing requirements of our export markets, such as posed by Nestle who as Fonterra’s biggest customer, has committed to a 50% reduction of emissions by 2030.And many more companies have similar targets. Read more...

Staying with agriculture, we examine the European Union’s new soil monitoring law. Over the past couple of decades, soil has been steadily degraded and this legislation aims to address this. The law requires that member states monitor the health of soils, fertilizer use and erosion and to make sustainable soil management the norm. The Soil Monitoring Law is part of the EU Soil Strategy for 2030 which sets out a framework and measures to protect and restore soils and ensure that these soils are used sustainably. Read more....

The US$2 billion voluntary carbon market has faced major reputational issues this year following media reports that questioned the effectiveness of carbon projects at removing greenhouse gases from the atmosphere, prompting some observers to question whether the voluntary carbon market has a viable future. A new benchmark, the Core Carbon Principles Assessment Framework aims to bring more clarity to the definition of a high-quality carbon credit and more transparency to how carbon offsetting contributes to global climate goals. Read more....

As the voluntary carbon market seeks to restore trust, Charles Bedford of Carbon Growth Partners, an investment manager who still believes in rainforest credits, shares his due diligence checklist. Charles talks about the importance of this market, why they are still buying credits, how they evaluate individual projects and where they are focusing their efforts. Read more....

Deforestation in the Brazilian Amazon plummeted by at least 60% in July compared to last year, heralding positive change ahead of the Amazon summit in Belém. Under President Lula da Silva's new administration, measures against land grabbers, illegal miners, and expanded conservation efforts yielded this sharp decline. However, environment minister Marina Silva has cautioned that a single month of progress does not represent a trend and has emphasised the need for real action at the summit to combat the climate crisis. Read more....

Nepal's forests flourish with female leaders. During the last 15 years since women took over leadership of the community forests, they had planted trees, stopped grazing and encroachment, fenced forests and educated villagers about land preservation. As a result, forest health improved significantly. Female-managed forests display greater biodiversity and healthier tree growth, promoting sustainable environmental practices. This article highlights the crucial role of women in nurturing nature and fostering thriving ecosystems. Read more....

Solar is a hot topic in New Zealand as electricity demand begins to ramp up. In 2020, energy regulator Transpower forecast demand growth of 60-80 per cent by 2050. Transpower says three quarters of applications in its pipeline are for photovoltaics projects, some 66 proposals. Genesis Energy is planning to become the solar powerhouse with three new projects that it hopes to bring online from 2026. Read more....

Deep-sea mining companies promise to deliver a green future built on metals that studies show the seabed simply won’t provide. Advocacy groups and financial institutions, however, have lambasted this claim stating that ocean floor drilling will likely do more harm than good. At least 20 countries have come out against deep-sea mining, most advocating for either a moratorium or an outright ban. Read more....

An unlikely partnership may be arising to meet soaring global demand for lithium: the Taliban and Chinese. Afghanistan has substantial lithium stores which could be vital to meeting demand increases that have resulted from the EV boom. The difficulty is establishing a supply chain out of the very mountainous and remote areas that the lithium is located in, and working with the Taliban, who have been internationally shunned since they took over the country in 2021. Read more....

In response to climate change, tourists are seeking experiences that support conservation and healing for endangered destinations. Regenerative tourism, as it’s known, goes beyond ecotourism and sustainable tourism by actively engaging visitors in restoring resources to their natural state. It involves immersive activities like staying in local homes, contributing to community development, and participating in environmental restoration projects. By valuing various forms of capital, including social, natural, cultural, and experiential, regenerative tourism fosters deeper connections between travellers and the destinations they visit. Read more....