NZ Government announces review of forestry ETS costs

March 1, 2024
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New Zealand Forestry Minister Todd McClay has announced an independent review into the forestry component of the Emissions Trading Scheme (ETS) Register to ensure it is efficient and cost-effective.

“Up and down the country forestry owners have been raising concerns about the excessive costs that have been imposed upon them by the previous government,” Mr McClay says.

“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.

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

“We are looking for assurance that the scheme’s operational costs are appropriate,” Mr McClay says.

“There are more than 560,000 hectares of post-1989 forest land in the ETS and over 4,000 forestry participants. They deserve to have confidence in the system the government has set up to manage their ETS obligations.”

Mr McClay says 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,” Mr McClay says. 

The Terms of Reference for the review is available here

In response to the announcement, the New Zealand Forest Owners Association says the review of the Emissions Trading Scheme (ETS) fees is a relief for foresters facing excessive costs and loss of climate change action. Read more >>

Source:, Forest Owners Association