Forestry and the Emissions Trading Scheme

Domestic News

We are entering the final few months of Reporting Period 2 for forestry participants in the NZ Emissions Trading Scheme. Timeframes to meet deadlines are approaching, so if you are considering any of the following, and would like PF Olsen to assist you, please be in touch to discuss your options as soon as possible:

  • New Post-1989 ETS registrations

  • Re-registrations

  • Adding or removing land from an existing participation

  • Transferring your participation (selling registered forests/land)

We would like to be able to provide MPI with forecasts of upcoming workload, so they can adequately resource their processing teams.

If you file your application too late MPI may not have enough time to process before the end of the year! Applications to register land or add extra land must be approved prior to the 31st December in order to be able to claim credits back to the start of 2013 (or planting date if after 2013). Processing of applications by MPI can take months if complex.

Price Update

The month of February saw a flurry of activity, with good volumes being traded and prices rising almost a dollar in the space of a week at one point. The $18 mark was exceeded for a short period of time, before a slight check. Activity in the market seems to have slowed as we move into March, as many emitters are assumed to have the majority of their surrender requirements sorted for the current reporting period.

The figure below shows the recent carbon credit prices for EUAs, CERs, NZUs and ERUs. Note that from 1st June 2015 only NZUs or New Zealand AAUs are valid units in the NZ ETS. EUAs are valid units for trading within the European Union.

Figure 1: Recent Carbon Prices - NZ$/t CO2e – Real (CPI adjusted)