Wood Matters

New Zealand Emissions Trading Scheme January Update

Felix Brandt
Published on

The NZU spot price rollercoaster over the last year aptly reflects just how tumultuous 2023 was for the New Zealand Emissions Trading Scheme. The year ended with a judicial challenge to the new ETS fees regime (ongoing), a change of government, and all four NZU actions declined.

We have yet to see much in the way of concrete ETS-related policy from the new administration. Early indications are that the ETS will be allowed to settle, with National scrapping the ETS review initiated by the preceding government. One area of concern is the National Party’s proposed 15,000-hectare per annum afforestation limit, as this would be challenging to implement, curtail landowners’ options, and compromise New Zealand’s ability to meet its climate commitments.