Submission on the NZ ETS review and redesign of the permanent forest category
The NZ Emissions Trading Scheme (NZ ETS) is currently under review by the Government to ensure its effectiveness. As part of this effort, the Ministry for the Environment | Manatū Mō Te Taiao is seeking input on the redesign of the permanent forest category, aiming to strike a balance between emissions reductions and support for removals.
Considering the current state of the NZ ETS, the importance on valuing long term environmental and social impacts, and the feedback of our partners and stakeholders, the Centre endorses the Government's proposed reform of the NZ ETS, including the redesign of the permanent forest category.
Key messages from the Centre:
The ETS is a critical component of a just and equitable climate transition, but it is also only one part. Ensuring it is part of a broader policy portfolio is crucial to achieve the desired outcomes.
The role of the ETS is to achieve gross emissions reductions, which requires a strong emissions price signal from the Government.
Maintaining investor and landowner certainty and confidence is crucial through any changes to the ETS.
Our preference is for options 3 & 4 from the review documentation, but more information on these should be provided before any changes to the ETS are finalised.