Due to farmer concerns about potential profitability losses, New Zealand dropped its proposal to levy a charge on agricultural emissions, such as methane emitted by sheep and cattle, on Tuesday.

The conservative government announced that it will create a Pastoral Sector Group with members from the agricultural industry to find more ways to reduce biogenic methane. It is necessary to draft and approve the group's terms of reference.

By the end of 2025, the former administration declared its intention to begin charging farmers for greenhouse gas emissions. In New Zealand, which has a population of 5 million, there are around 10 million cattle and 26 million sheep. Methane, which makes up the majority of the country's greenhouse gas emissions, is produced by agriculture.

New Zealand's commitment to halting global warming included plans to include agriculture in the carbon trading scheme. Though the current administration pledged to scrap the plan if elected, it proved controversial in many rural areas. Todd McClay, New Zealand's Minister of Agriculture, believes that a fresh approach is necessary to collaborate with farmers and processors on the issue of biogenic methane. He said that the administration was determined to fulfill its commitments related to climate change.

The government's announcement of a NZ$50.5 million increase in funding for the New Zealand Agricultural Greenhouse Gas Research Centre over the next five years demonstrates a strong commitment to addressing environmental issues. Furthermore, the allocation of NZ$400 million over the next four years to accelerate the commercialization of emission-reducing tools and technology underscores the government's dedication to mitigating on-farm emissions.