Fonterra has warned the emissions trading scheme will cost
it $25 million next year for activities such as
transporting milk. Photos from ODT files.
The emissions trading scheme will cost it $25 million in
the first year of introduction from July 1, despite having
dramatically cut energy use and waste, Fonterra, the country's
largest company, says.
Chief executive Andrew Ferrier said yesterday from July 1
Fonterra would have to account for its fuel use,
manufacturing emissions and processing activities by either
not using fuel or generating greenhouse gases or buying
carbon credits to offset those emissions.
The first year would cost the company $25 million and
increase each year thereafter, he said in a press conference.
In the past five years Fonterra had reduced by 34% the energy
used per tonne of dairy product produced, Mr Ferrier said.
The savings equated to the energy used by a city the size of
Hamilton.
Carbon dioxide production was 300,000 tonnes lower, due
largely to transportation efficiencies, and 90% of waste was
now recycled.
On-farm productivity had improved 1% a year for each of the
past 20 years, he said.
Mr Ferrier said inland store hubs at Hamilton and Mosgiel
would further improve transport efficiency.
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