New Zealand has scrapped its plan to price agricultural emissions, bowing to farmer pressure fearing profitability loss.

The Kiwi government will instead establish a pastoral sector group to explore alternative methods for reducing biogenic methane.

Previously, a scheme to charge farmers for emissions starting in 2025 was proposed by the former government, but it has now been abandoned.

Agriculture contributes nearly half of the country's greenhouse gas emissions, primarily methane.

 The government has pledged NZ$400 million ($371.2 million) over four years to fast-track the development of emission reduction tools and technologies for farms.