Government announced on Thursday that it had given the agricultural sector a five-year lifeline to get its act together before it was brought into the emissions pricing scheme (ETS).
In terms of the deal, farming leaders have committed to improving their tools for benchmarking emissions on farm, to more research and to implement farm planning including a climate module.
The agreement could however, fold agriculture into the ETS by default by 2025, or as early as 2022, if the government of the day feels the sector has not made enough progress.
In a statement, the Petroleum Exploration and Production Association of NZ (Pepanz) said while the plan was a step in the right direction, it was "fairer" for all sectors to share the burden.
"As a global and all-of-economy problem, we believe it is fair for all sectors and gases to be liable under the ETS.
"We accept that methane may require some flexibility, due to the importance of New Zealand's contribution to global food security, but that flexibility should not compromise New Zealand's energy and fuel affordability by forcing other sectors to carry more than their share of emission reductions.
"Emissions trading schemes operate at their most efficient when their coverage is at its broadest, as they incentivise innovation and allow the cheapest emissions reductions to be found, wherever they are," it said.
• The association has announced the appointment of John Carnegie as its new CEO, following the departure of Cameron Madgwick earlier this month.
He is the current executive director of the Business NZ Energy Council, has held roles with the NZ Treasury, the Ministry for Economic Development and the electricity market operator.
