Fonterra says their emissions reduction scheme will work for the benefit of its farmers.

The dairying giant plans to slash on-farm greenhouse gases 30 percent by 2030 through new tech, farming practices and carbon removal.

There's no punishment for farmers not complying- the company instead hopes demand from customers to go green will be incentive enough.

Director of Sustainability Charlotte Rutherford says it's about productivity and efficiency.

"It's generally a good thing for farmers- it can make them more profitable and can certainly make them more resilient into the future."

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