Changing penalties for small forestry ETS participants
Friday 5 Aug 2022New Zealand’s Ministry for Primary Industries and the Ministry for the Environment are consulting on two options to change the penalty for small foresters in the New Zealand Emissions Trading Scheme (NZ ETS) that fail to surrender or repay units to the Crown by the due date.
The surrender/repayment penalty was introduced in 2021, replacing the excess emissions penalty which previously applied when participants fail to surrender or repay units by the due date. The surrender/repayment penalty was intended to apply to all NZ ETS participants. However, its introduction was deferred for small forestry participants – those with net liabilities of under 25,000 units per year – until 2023.
This was because of concerns the penalty could significantly impact small forestry participants, causing serious hardship in some cases. Two alternatives have been developed to the surrender/repayment penalty which are more appropriate for small forestry participants. These options will ensure the impact of the penalty is proportionate to the offence, while also encouraging participants to meet their obligations.
Feedback is being sought on these options to ensure the penalty will work in practice. Submissions close on Tuesday 30 August 2022.
Find out more about the consultation including webinars to discuss the options and have your say.
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