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.

Speaking at Fieldays in Hamilton this morning, Minister of Forestry Todd McClay announced the Government would be introducing a package of initiatives during the course of this parliamentary term to support industry growth and to deliver positive outcomes across the forestry and wood processing value chain.

Minister McClay says the Government is also considering how to get the balance right for New Zealand’s wider forestry system.

“It is important to ensure there is sufficient pipeline of logs to support domestic wood processing as well as encouraging the planting of new trees on suitable land to meet our international climate change commitments,” says Mr McClay.

Climate Forestry Association 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.

“Both removing carbon and reducing our emissions have a vital part to play in meeting our international climate targets. And while new technologies may play a bigger role in the future, effective climate forestry – based on the right tree in the right place – will always have a part to play, because of the host of other benefits, from diversifying farm incomes and creating jobs, to improving our landscapes and waterways, which it provides.”

Andrew Cushen says that in order for the sector to successfully meet New Zealand’s targets, it needs the right regulatory settings and a stable, dependable carbon market.

“That’s why the Minister should be congratulated for recognising the importance of the ETS as our most effective tool in combatting the impacts of climate change and meeting our international climate commitments.” says Andrew Cushen.

“By building back confidence in the sector and certainty in the market, the Government’s approach will support a greater level of local investment in both emissions reduction and carbon sequestration, which together form the basis for New Zealand’s climate action.”

Mr Cushen said the Association’s members also welcomed the results of the Government’s review of the ETS service fees proposed by Te Uru Rākau.

Today, Minister McClay announced the Government is cancelling annual service charges for the ETS for 2023/24 as a result of an independent review of the forestry component of the ETS register. The Government will now work with the sector to rectify issues the review identified, with a revised annual charge in place for the 2024/25 year that is ‘fair and reasonable’.

“Forestry plays an important role in helping New Zealand meet its emissions reductions obligations. This review is the government’s first step on halting Labour’s attack on forestry through increased costs and regulations,” Mr McClay says.

“Again, the Government should be recognised for engaging with the industry and establishing a basis for the sector to fairly contribute to the scheme’s operational cost,” says Andrew Cushen.

“Overall, the approach the Government is taking will support the efficient, long-term functioning of the ETS, increase New Zealand’s climate action and encourage significant investment in meeting our domestic targets in a way that reduces the major potential costs and impacts for Kiwi taxpayers.”

About the Climate Forestry Association:

The Climate Forestry Association is made up of foresters, ecologists, Māori and non-Māori landowners, community organisations, consultants, and investors who all recognise that we are in a climate emergency and that forestry and forest management has a crucial role in combating climate change.

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