Govt Eyes More ETS Cost Cuts for Forest Owners
Forestry Minister Todd McClay has today announced additional reductions to costs for forest owners in the Emissions Trading Scheme Registry (ETS), saying that all forest owners will benefit from this decision.
“The last Labour Government wanted forest owners to pay an excessive $30.25 per hectare per year, forcing the sector to take legal action. We’re lowering that, for a second time, to $10.25,” Mr McClay says.
“This represents a 66 per cent reduction in the annual charge since the National-led Government took office.”
Consultation opens today and is the result of a second review into operational costs of the scheme. Mr McClay requested the first independent review in 2024, which resulted in an initial reduction to $14.90 per hectare.
Key proposed changes include:
“The changes aim to ensure cost recovery reflects the true costs of administering forestry in the ETS while upholding high service standards” Mr McClay says.
The consultation also seeks feedback on an alternative reduced annual charge option for forests that no longer need to report carbon stock changes, to apply for a limited period.
“Today’s announcement delivers on the Government’s promise to rebuild confidence in the forestry sector and support its role in achieving New Zealand’s exporting and emissions targets,” Mr McClay says.
Updated settings are expected to take effect from mid-2026.
Details on the consultation are available here: https://www.mpi.govt.nz/review-of-forestry-in-the-emissions-trading-scheme-cost-recovery-settings
https://www.beehive.govt.nz/release/government-proposes-further-ets-cost-reductions-forest-owners
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