New Zealand Forestry Minister Todd McClay announced the establishment of a Forestry Sector Reference Group to drive better outcomes from the Forestry Emissions Trading Scheme (ETS) Registry. Source: Timberbiz
“We are committed to working with the forestry sector to provide greater transparency and engagement on the forestry ETS registry as we work to reduce costs.
“This group will help the Government to restore confidence and certainty for Forestry”, Mr McClay said.
The establishment of the Reference Group follows an independent review of the operational costs of the forestry ETS Register announced earlier this year.
“Forest owners have raised concerns about the excessive costs that had been imposed upon them by the previous Labour government who put a NZ$30.25 per hectare annual levy for participation in the Registry.
“I agree with the sector that this cost is unreasonable – the Reference Group is part of our response to reduce costs and drive greater efficiency.
“In response, the Government has cancelled the 2023/24 annual charge that forest owners were required to pay to participate in the ETS Registry.
“Today I am releasing the independent report that outlines where the current system fell short of the Coalition Government and sector’s expectations.
“The 4,000 plus forestry participants deserve to have confidence in the system designed to manage their ETS obligations. There is a cost to the register, but they shouldn’t have to pay for the last government’s mistakes,” Mr McClay said.
“Any of the issues identified in the report have now been addressed, and the Reference Group will help prioritise work that can reduce the cost and unnecessary regulatory duplication in the ETS Registry. The Government will shortly consult on a new Forestry ETS Registry Levy for the 2024/2025 financial year.
“Forestry plays an important role in helping New Zealand meet its emissions reductions obligations and grow our economy.”
