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Mood of the Boardroom: NZ dairy exports forecast strong returns as Fonterra eyes trade deals
NNew Zealand

Climate change: Government to lower 2050 methane reduction target, orders 2040 review

  • October 12, 2025

Agriculture Minister Todd McClay announcedg the changes in Te Pahu, near Hamilton, at midday, alongside Climate Change Minister Simon Watts and Biosecurity Minister Andrew Hoggard.

In a statement, McClay said the change to the target range was informed by the the independent Methane Science Review, released in 2024.

“We’ve accepted a range of advice and worked closely with industry to agree a practical target that protects food production whilst substantially reducing New Zealand’s farm emissions.”

The ministers also confirmed they would investigate a “split-gas approach” to New Zealand’s climate change obligations, in recognition of the different lifespans of methane and carbon.

They also reiterated agriculture would not be brought into the Emissions Trading Scheme, claiming it would risk “closing down farms and send jobs and production overseas”.

“Reductions in methane to meet the targets will be achieved in partnership and through industry leadership and processor incentives following the lead of companies like Fonterra and Silver Fern Farms,” McClay said.

More to come …

Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.

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