New Zealand Tuesday proposed plans to price agricultural emissions in an effort to reduce greenhouse gas emissions across the country. According to the plan, over half of New Zealand’s total emissions stem from the agricultural sector. The plan would establish a legal responsibility for qualified farmers and growers to pay an annual emissions fee.

Under the plan, agricultural business owners would be responsible for reporting and paying for emissions depending on the type of emission. For example, the plan proposes a separate levy price to be set for long-lived gasses and biogenic methane. The prices would then be adjusted regularly based on progress towards the proposed goals. The funds gathered under the plan would then be used to fund research and develop tools and technology to further reduce agricultural emissions. The plan also contains provisions incentivizing agricultural emissions reductions. As it stands now, the plan estimates that the introduction of agricultural emissions pricing will reduce biogenic methane emissions to 10 percent below their 2017 levels as soon as 2030.

The plan’s greatest impact is likely to be felt in the sheep and beef sector, which are most susceptible to changes from regular land use to low-emissions land use. The plan also warns of potential economic impact, as New Zealand is a major exporter of dairy and meat products. The Māori community is likely to be disproportionately impacted, as major owners in the sheep and beef sector.

The plan originates with an 2019 agreement between New Zealand’s government, farming leaders and Māori known as the He Waka Eke Noa–Primary Sector Climate Action Partnership. The ultimate goal of the partnership is to reduce agricultural emissions. In May, the partnership introduced a series of recommendations, including pricing agricultural emissions. The same year the partnership formed, New Zealand approved the Zero Carbon Bill, with a goal of reducing the country’s non-biogenic greenhouse emissions to zero by 2050.

Public consultation on the plan is open until November 18. After the government considers input on the plan, the final proposals are projected to go to ministers for approval as soon as early 2023.