A Fonterra Guide to Climate Change

ContentA: Climate Change and New Zealand Page 2What is climate change?What could climate change mean to New Zealand?What is the New Zealand Government doing about climate change?B: Emissions Trading Scheme PAGE 5How does the Emissions Trading Scheme work?How will agricultural emissions be calculated and charged under the Emissions Trading Scheme?Where does the money raised by the Emissions Trading Scheme go?What will the Emissions Trading Scheme cost on the farm?How is Fonterra’s supply chain likely to be impacted by the Emissions Trading Scheme?Are there any other parts of the climate change policy that may affect my farm or Fonterra?What actions can be used to offset emissions or generate emissions units?C: Climate Change Policy Overseas PAGE 10Are any of our overseas competitors facing an emissions cost?What international agreements are in place after Kyoto?D: Fonterra and Climate Change PAGE 11What has Fonterra been doing within its business to lower emissions?E: Climate Change and the Farm PAGE 12How do animal emissions occur?What work has been done to develop tools to reduce animal emissions?What is the Global Research Alliance on Agricultural Greenhouse Gases?What factors cause animal emissions to fluctuate?What is the status of research into the use of nitrification inhibitors?Fonterra has said that improving animal productivity can reduce methane emissions for a setvolume of milk. How does this work?If the dairy system is carbon in (pasture) and carbon out (milk), shouldn’t it be carbon neutral?What about the carbon stored in my soil?Why doesn’t the carbon absorbed by pasture plants on dairy farms count as part of the farmemissions balance?Can planting trees in small areas and along riparian margins be counted to offset emissions?What is Fonterra doing to support shareholders?What can dairy farmers do to reduce emissions?