Forestry Minister announces ETS fee change

Friday 21 Jun 2024

Annual service charges paid by forest owners with trees in the Emissions Trading Scheme (ETS) will be cancelled for the 2023/24 year. 

Forestry Minister Hon Todd McClay announced the ETS change while outlining the Government’s vision to grow forestry as part of his address to the Fieldays Forestry Hub. Minister McClay said the government wanted to rebuild confidence in forestry, noting that the charges imposed on growers for administering the ETS felt excessive, with insufficient transparency around them.

“We want to ensure the ETS is cost-effective and efficient for participants,” said Minister McClay.

Participants will continue paying for specific services, but they won’t be charged the $30.25/hectare. 

New Zealand Forest Owners Association chief executive Dr Elizabeth Heeg welcomed the news removing the ETS charge and supported a more collaborative relationship with the Government to grow forestry in New Zealand.

“We look forward to working with officials to ensure that the setting of ETS charges is done with transparency, efficiency and reasonableness,” Elizabeth said. “It has been a challenging time for forest owners. The encouragement from government to add more value domestically and address the climate crisis will go a long way in helping the sector grow revenue and jobs for New Zealand. 

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Source: NZFOA

Climate Forestry Association's response to announcement

The Climate Forestry Association (CFA) has praised the Government’s recognition of the forestry sector’s potential to play a major role in meeting New Zealand’s climate commitments. Chief executive, Andrew Cushen, says the Government has shown a thorough understanding of the importance of the forestry sector.

Climate forestry is currently the most successful means we have of meeting our climate commitments at the scale we require, while also increasing the climate resilience of our landscapes, community and economy,” says Andrew Cushen.

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Source: Climate Forestry Association

Ekos's Response

Ekos is welcoming today’s statement by Forestry Minister Todd McClay on supporting the forest sector and the government’s removal of a service fee on all forests registered in the New Zealand Emissions Trading Scheme (NZETS).

“This is a good day for native forests. By removing this crazy service fee on native forests in the NZETS we can now restore more habitat with carbon funding”, Ekos CEO Sean Weaver said.

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Source: Ekos

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