Service charges in forestry ETS to be cancelled for 2023/24

"The sector has consistently raised concerns about the financial burden imposed by the previous government's annual service charges, and I concur with their assessment," McClay remarked.

Forestry Minister Todd McClay has announced the cancellation of annual service charges within the Forestry Emissions Trading Scheme (ETS) for the upcoming financial year 2023/24. This decision, McClay stated, responds to feedback from the forestry sector citing excessive and unjustified costs imposed by previous administrations.

"The sector has consistently raised concerns about the financial burden imposed by the previous government's annual service charges, and I concur with their assessment," McClay remarked. "There was a clear lack of transparency, communication, and consultation during the introduction of these charges, which significantly undermined sector confidence."

McClay assured stakeholders of the government's commitment to clarity and fairness in cost recovery, emphasizing the removal of the $30.25 per hectare annual charge for the next fiscal year. He highlighted the outcomes of an independent review aimed at improving the efficiency and cost-effectiveness of the ETS register, which identified several shortcomings in the previous administration's approach.

"In collaboration with forestry participants, we are striving to instill confidence in the operational framework and financial aspects of the Forestry ETS," McClay affirmed. "This move not only aligns with our pledge to rebuild trust within the forestry sector but also supports New Zealand's efforts to meet its emissions reduction targets."

The Forestry ETS encompasses over 590,000 hectares of post-1989 forest land and involves approximately 4,200 participants. McClay expressed his commitment to working closely with stakeholders to implement a revised annual charge structure for the following financial year, one that is equitable and reflective of actual service requirements.

"This decision underscores our pre-election promise to restore trust and streamline regulatory burdens on forestry, which is integral to our national climate goals," McClay concluded. "We are halting the previous administration's policies that imposed unwarranted costs and regulatory burdens on this vital sector."

The announcement marks a pivotal step in McClay's efforts to foster a more supportive environment for forestry in New Zealand, ensuring its continued contribution to the country's climate agenda while addressing industry concerns over financial obligations within the ETS.