Forestry and the Emissions Trading Scheme

Climate Change Response (Emissions Trading Reform) Amendment Bill

At the start of May, the Environment Select Committee reported back on proposed changes to the Climate Change Response Act 2002. The committees report proposes numerous amendments and totals almost 400 pages… anyone wanting a little light reading can find it here. The first 20 pages summarise the recommendations.

Key forestry-related recommendations include:

  • Changing the commencement timing of many of the forestry-related policy changes
  • Extending the timeframe for participants to opt in to averaging accounting (before it becomes mandatory).
  • Improving the design of the pre-1990 offsetting regime.

 The bill now goes to the Committee of the whole House ahead of its third reading.

Price update

Prices recovered from a recent low of just over $22.00 in late March, now trading right on $25.00 as we approach the 31 May deadline for surrenders. Activity has been reasonable, with many emitters willing to purchase at just below the Fixed Price Option level rather than pay $25.00.

If past years are an indication, we may see prices ease slightly once the end of May passes and emitters have another 12 months to accumulate units for next year.