Monday, April 22, 2024

Review of forestry’s ETS duties begins

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National keeping election promise to sector, McClay says.
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The government has announced an independent review into the forestry component of the Emissions Trading Scheme register to ensure it is efficient and cost-effective.

Forestry Minister Todd McClay said forestry owners have been raising concerns about the excessive costs imposed upon them by the previous government.

“We have identified 22 fixed service fees including a $30 per hectare annual fee for participants into the forestry ETS register that forest owners are expected to pay,” he said.

McClay said the review will inform future decisions on funding the ETS regime for forestry services, including the current revenue model. 

“We are looking for assurance that the scheme’s operational costs are appropriate.

“There are more than 560,000 hectares of post-1989 forest land in the ETS and over 4000 forestry participants. They deserve to have confidence in the system the government has set up to manage their ETS obligations.”

McClay said this is part of a pre-election commitment to rebuild confidence in the forestry sector. 

The review starts next month and is expected to report back by the end of April. 

“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 excessive costs and regulations,” McClay said. 

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