Wood Matters

New annual charge for forestry ETS participants

Following a forestry industry-led legal challenge and an independent review, the government has now proposed to reduce the envisaged annual charge from $30.25 to $14.90 per hectare. Under the new proposal, the reduced charge would be levied as of the 2024–25 financial year (ending 30 June 2025). Submissions on the proposed charge are open till 5 pm 13 November 2024.

Relevant links:

“Resetting the ETS annual charge for forestry participants” discussion paper

Registration for 7 November webinar on the proposed annual charge

Online submission

Offline submission template (email completed form to etsforestrychanges@mpi.govt.nz)

Final NZU auction of the year on December 4

The fourth and final NZU auction of 2024 will be held on December 4. Just over 11 million NZUs will be on offer, not including the cost containment reserve. In recent months, the NZU spot price has inched up closer and closer to this year’s auction floor price of $64. At the time of writing on 5 November, the last sales price recorded on Jarden Commtrade was $63.70. Should NZUs trade very close to or just over the $64 floor price on the morning of the auction, there is a good chance that the auction will at least partially clear as the floor price will increase to $68 in 2025.

The government’s quarterly NZU auctions are open to anyone with a NZ Emissions Trading Register holding account.

Relevant links:

Subscribe to auction updates

Register as an auction participant