On 21 September 2023, the New Zealand Government announced its final decision on the proposed cost recovery charges for the second phase of the Forestry Emissions Trading Scheme (ETS) services.
Despite strong and largely unanimous opposition from industry, including PF Olsen, the government decided to implement its original proposals almost unchanged. The only concession it made was to waive the new annual fee of $30.25 per hectare for native forests less than six years old.
This new annual fee alone represents a significant increase in the annual cost of ETS participation. Particularly serious are ETS participations (both now and in the future) that are already on the verge of financial viability, such as stock-change production forests and permanent native forests with little or no marketable carbon.
ETS participants wishing to avoid the annual fee must apply by October 18, 2023 to remove all of their post-89 forestland from the ETS and repay the full balance of carbon credits issued to their forestland, including possible Any carbon credits that have been generated. Sold or retained by previous owner.