Updating the new zealand emissions trading scheme
These proposals will take time to shape up as feedback is being sought on the exact approach the Government will take.
Averaging - One aspect of ETS under discussion is to introduce an averaging approach to the volume of NZUs in a forest.
Compliance is established by comparing actual emissions with permits surrendered including any permits traded within the cap.
There is, however, no scientific consensus over how to share the costs and benefits of reducing future climate change (mitigation of climate change), or the costs and benefits of adapting to any future climate change (see also economics of global warming).
Further decisions are expected in 2019 and an update will be made available on our website in early 2019.
The New Zealand Emissions Trading Scheme (NZ ETS) is a partial-coverage all-free allocation uncapped highly internationally linked emissions trading scheme.
This would allow a forest owner to make a decision to sell NZUs received knowing they will not be needed at harvest time.
International Units opening up NZ to international markets again but limiting the units that may come in to the NZ market.
The NZ ETS was first legislated in the Climate Change Response (Emissions Trading) Amendment Act 2008 in September 2008 under the Fifth Labour Government of New Zealand by the Fifth National Government of New Zealand.
The NZ ETS covers forestry (a net sink), energy (42% of total 2012 emissions), industry (7% of total 2012 emissions) and waste (5% of total 2012 emissions) but not pastoral agriculture (46% of 2012 total emissions).
Recap: Forestry planted after 1 January 1990 on land that was previously not in forest is eligible to be registered as post-1989 forest and to receive carbon credits (New Zealand Units or NZUs) for each year of growth and the carbon stored.
It potentially offers a financial incentive to afforestation as the trees can earn NZUs which can then be sold.