Emissions Trading Scheme reviews

Between 2015 and 2019, the Government conducted a Review of the Emissions Trading Scheme (ETS) and then consulted with New Zealanders on potential changes and improvements to the scheme. A wide range of changes are being introduced, which will apply from 2021. Find out about what's changing.

Update - May to July 2019

Decisions to provide more detail on averaging and further improve the ETS

The Government has announced a third set of decisions to further improve the ETS.

The decisions include:

  • forests registered in the ETS before 2019 cannot transition to averaging accounting. This decision will be revisited in 2021. (All forests registered from 1 January 2021 will have to use averaging accounting, and forests registered in 2019 and 2020 will have the option to use it)
  • foresters using averaging accounting can offset their liabilities by planting an equivalent forest elsewhere
  • foresters using averaging accounting won’t have to pay back NZUs after adverse events
  • having a number of ways that Permanent Forest Sink Initiative members could transition to the ETS
  • other minor and technical changes.

While these details of averaging accounting have been decided, the specifics of how they will work will be set in regulations, which will be consulted on, later this year (2019).

The Government also is investigating ways to incentivise the processing sector to produce more long-lived wood products.

Government media release: ETS fixes drive climate action – Beehive website

Find out more

Read Cabinet papers related to the decision

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