Forestry Minister Announces ETS Fee Change And A Renewed Vision For Forestry

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 today.

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.

The introduction of a series of initiatives supporting forestry and wood processing's growth was also announced by the Minister during his address, including four key priorities to drive more positive outcomes across the supply chain.

These included encouragement of economic growth through forestry and wood processing jobs and exports, delivering low emission solutions and products, supporting land use resilience, adaptation, biodiversity and social benefits; and providing carbon removals to support climate goals.

"This government will drive investment to unlock the industry’s economic potential for growth," Minister McClay said.

The Minister said we need to set our sights high for forestry. Reiterating that our goals can be achieved only by close collaboration between Government and the sector to find solutions to the challenges.

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.

“New Zealand’s forests – plantation, native or otherwise – are the only tangible means we have at present for mitigating climate change and meeting our 2050 emissions target.

“Amendment to the administrative costs forest owners face for forests entered into the ETS will ensure forestry continues to be part of the solution to reducing our nation’s emissions.

“We agree with the Government that transparency and collaboration is key and we look forward to helping them deliver their priorities.”

The Minister referred to the event as ‘Forestry Day’, noting the importance of this collaboration and the value of forestry to communities.

“The sector’s success is critical to rebuilding New Zealand’s economy, boosting our Gross Domestic Product and providing regional jobs in a highly productive sector,” Minister McClay said noting that forestry has a permanent place in the New Zealand economy.

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