The government reduces forestry charge for environmental scheme.
Forestry Minister Todd McClay has announced a 50 per cent reduction in the annual charge for forest owners participating in the Forestry Emissions Trading Scheme (ETS). The proposed new per-hectare annual charge would be $14.90, down from Labour's previous charge of $30.25 per hectare.
The decision follows an independent review and comes after the Ministry for Primary Industries worked to find efficiencies and drive down costs over the last 10 months. Mr McClay says Cabinet agreed that the forestry sector should not bear the brunt of Labour's previous decisions, which drove up the cost of the Registry.
Consultation on the new annual charge starts today (23 October 2024) and runs for three weeks. The proposal is part of the Government's promise to rebuild confidence in the forestry sector and support its role in achieving New Zealand's exporting and emissions targets. After consultation, Cabinet will finalize the regulations, providing participants with clarity and certainty on charges.
The new annual charge would begin in the 2024/25 financial year and stay in place until a full review is conducted after the current emissions reporting period. The Government has also formed a Forestry Sector Reference Group to further improve outcomes for the ETS Registry and find greater cost savings over the next year.