Funding

It has been difficult to get an accurate picture of the total investment in research on agricultural greenhouse gases over the last five years. This is due in part to the way the research has been classified and funded and to the timing of funding. The National Science Strategy Committee on Climate Change calculated that the total investment in climate change research in the period 1999 to 2001 was $23,500,000 per year, 90% of which came from government. Of this, $9,000,000 (39%) was spent on inventory and abatement research, and a further $4,000,000 (18%) was spent looking at the potential impacts of climate change, including impacts on agriculture.

In 2002/03, FRST and MAF will spend $3,263,000 on agricultural greenhouse gas emissions research, with $2,000,000 on inventory research, $700,000 on fundamental research and $435,000 on abatement research. In 2003/04, total FRST and MAF investment will rise to $4,715,000, of which $2,480,000 (53%) will fund inventory research, $700,000 will fund basic studies, and $1,532,000 will fund abatement research. There has been an approximately 5.5-fold increase in government funding of agricultural greenhouse gases research since 1999.

The present emphasis on developing Tier 2 emission factors and models to estimate emissions is appropriate. As abatement technology is adopted in the future, the ability to revise emission estimates and to verify through direct measurement that the technologies do result in reduced emissions, will be critically important. The ability to make estimates and measurements at a farm level will emerge as a priority if a market based approach to emission accounting is contemplated in the future.

We recommend that the government continue its current (2003/04) investment in research. We consider that the reporting of the National Inventory is the government's role, and that the supporting research should continue to be government's responsibility. We draw attention to the future need to be able to verify the impact of the adoption of abatement technologies.

The level of expenditure on research on abatement of agricultural emissions has risen sharply since 1999. FRST will spend $1,500,000 in 2003/04. The level of investment in abatement research by other public and private sources has been low.

However the establishment of the Pastoral Greenhouse Gas Research Consortium (PGGRC) will significantly alter the level of private sector investment in abatement research. The partners in the Consortium are Fonterra Cooperative Group Ltd, Meat NZ, AgResearch Ltd, Wrightson Ltd and DEEResearch. Industry funds have been matched by FRST funding to create an initial funding level of approximately $1,500,000. We assume that the FRST funds are part of its total investment referred to above. Funding from both sources is expected to grow over the initial five-year term of the Consortium.

PGGRC's initial science strategy is based on a balanced portfolio of short, medium and long-term research on methane production in ruminants that can lead to practical on-farm methods of reducing emissions. Such methods need to be shown to be safe, leave no residues in meat or milk, be cost-effective and be applicable to grazing animals. The focus in the first three to four years will be on discovery and proof-of-concept research that is intended to uncover a range of abatement processes and products that can be further developed as practical abatement measures. The research portfolio includes studies of potential animal, plant and rumen microbial targets.

The six key science areas of investigation and a brief description are:

1. Rumen microbial strategies to lower methane emissions

Exploit rumen processes which influence methanogenesis and the survival of methanogens to provide novel on-farm strategies.

2. Forage and plant inhibitors to lower methane emissions

Identify and quantify inhibitory properties of forage inhibitors.

3. Genomics for identifying methanogen inhibition targets

Compare and contrast rumen and non-rumen methanogens in order to pin-point areas of archael/bacterial `weakness'.

4. Animal factors affecting methane emissions

Quantify the genetic and environmental components of between-animal variations.

5. Proof-of-function of possible methane-reducing technologies

Animal assessments to establish potential of possible on-farm technologies, safety, and acceptance to consumer.

6. On-farm testing

Acceptability at a farm systems level (to follow successful leads from above).

These areas of science investigation form interlinked strands that will inform, negate and encourage certain lines of ongoing research (the `go/no go' questions for the Science Advisory Group).

In recommending a level of future investment in a balanced programme of research, we believe that the principal determinant of the size and scope of a future programme will be the availability of appropriately trained scientists. Scientists with these skills are likely to be in demand around the world. For this reason, we have based our estimate of the costs of a research portfolio on the number of full-time scientist equivalents we believe to be needed to put in place the programme we have outlined above and in the following table.

Table 1: Estimated Number of Additional Scientists and their Associated Costs Needed to Mount the Recommended Research Programme

Research Area

Scientists

(full-time equivalents)

Investment per year

($000)1

 

Minimum

Optimum

Minimum

Optimum

Fundamental studies on rumen microbiology and physiology2

3

5

900

1,500

Studies on diet manipulation that includes animal and forage factors

4

7

1,200

2,100

Farming management/ systems

2

4

600

1,200

Soil/water/

manure management

1

3

300

900

Modeling
Resource accounting

3

5

900

1,500

Inventory/ verification

2

4

600

1,200

TOTAL

15

28

4,500

8,400

1 We have assumed that each scientist requires a dedicated technician and that the cost is $150,000 per full-time equivalent scientist or technician.

2 Some or all of this additional investment may be made by PGGRC.

If this additional investment were obtained, the total research programme would be of the order of $9,900,000 to $14,000,000 per year, with approximately one-third being invested in inventory and verification research and the balance on abatement studies.

We recommend that in addition to the current government investment (approximately $4,700,000 in 2003/04) and the investment by the Pastoral Greenhouse Gas Research Corporation ($800,000), an additional minimum 12 and optimum 23 full-time scientists will be needed to mount a comprehensive research programme. This is estimated to cost between $4,500,000 and $8,400,000 per year.

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