The carbon emissions from New Zealand dairying are far greater than previously thought – with new research showing the use of palm kern oil emits far more carbon than previously thought.

An independent scientist hired by Greenpeace says the palm kernel imported to New Zealand this season released 8.9 million tonnes of greenhouse gas emissions.

Because palm kernel is planted on cleared peatlands and rainforest a huge amount of carbon is released in the process and Fonterra buys nearly a third of the world’s palm kern oil to feed its cows.

Greenpeace says there is nowhere left for Fonterra and the New Zealand dairy industry to hide.

The environmental body says palm kernel could be responsible for up to 12 percent of New Zealand’s total emissions – and this would make agriculture responsible for more than 60 percent of the country’s emissions.

However, Fonterra’s says it is leading the fight against climate change.