Government slashes forestry ETS charges by 50%
The Government has confirmed a significant reduction to the annual charge for forest owners participating in the Forestry Emissions Trading Scheme (ETS). As of January 2025, the charge will be halved from $30.25 per hectare per year to $14.90.
Forestry Minister Todd McClay announced the decision, stating it delivers on the Government's promise to rebuild confidence in the forestry sector and support its role in achieving New Zealand's exporting and emissions targets. The move follows consultation on amendments to the Climate Change (Forestry) Regulations 2022.
The new charge aims to ensure forestry participants pay their fair share of costs while not bearing the brunt of previous Labour government decisions, which drove up costs for the ETS registry. The Government has established a reference group to increase transparency and is undertaking a wider review of cost recovery settings due to be completed in 2026.
The revised regulations will come into effect in January 2025, with invoicing set to begin in February 2025.