Forestry ETS costs: Government announces independent review

Forestry Minister Todd McClay. Photo / Mark Mitchell

The Government has announced an independent review of forestry’s role in the Emissions Trading Scheme (ETS), to ensure it is efficient and cost-effective.

Forestry Minister Todd McClay, who announced the review yesterday, said owners had been raising concerns about “excessive costs”.

McClay said the review would 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.

“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.

“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.”

McClay said there were more than 560,000ha 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.”

He said the review was part of a pre-election commitment to rebuild confidence in the forestry sector.

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“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.”

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