New Zealand faces two enormous challenges if it is to meet its international climate change commitments under the Paris Agreement: biogenic methane emissions from agriculture, and carbon emissions from industry and transport. For now, there seems little prospect of significantly reducing agricultural emissions, short of reducing actual livestock numbers, because the technology is currently not available. The same can’t be said for decarbonising industry and transport. The question is, how best to do that. Carbon emissions are currently priced by the emissions trading scheme (ETS), but in its present form this can’t provide the financial incentives to decarbonise within the timeframe recommended by the Climate Change Commission.