A reset of the Emissions Trading Scheme is a step in the right direction; however, more is needed to restore confidence in forestry, according to the New Zealand Forest Owners Association.<\/p>\n\n\n\n
When the Government tightened Emissions Trading Scheme (ETS) settings late last year, the unit price for carbon dropped from $88 per unit to $33.<\/p>\n\n\n\n
As reported by RNZ<\/a>, the NZ Government has accepted advice from the Climate Change Commission<\/a> to raise the price reserve; from December, the bottom price will lift from $33 to $60.<\/p>\n\n\n\n In updating the scheme’s settings, Minister of Climate Change James Shaw said the ETS is a crucial tool for New Zealand to meet its climate change obligations.<\/p>\n\n\n\n “The Government has made its annual decision on unit limits and price control settings for the New Zealand Emissions Trading Scheme for 2023 – 2028, to drive stronger action on emissions reduction target.”<\/p>\n\n\n\n “Annual reviews of the unit settings and price control limits provide an important opportunity to ensure the settings are fit for purpose.”<\/p>\n\n\n\n As reported on Tuesday<\/a>, the NZ Government will introduce a ‘two-tier cost containment reserve trigger price.’ <\/p>\n\n\n\n Under the NZ ETS, activities generating carbon emissions, like mining coal, must surrender an emissions unit for every tonne of pollution that results. <\/p>\n\n\n\n “They can buy these units through Government auctions or on the secondary market,” according to the NZ Department of Environment. <\/a> <\/p>\n\n\n\n Under the auction settings, “price controls comprise the reserve price (lower price control) and the trigger price (upper price control).”<\/p>\n\n\n\n If reached in an auction, the trigger price releases a volume of emission units held in the cost containment reserve. <\/p>\n\n\n\n Under the reforms, the Tier 1 trigger price will increase from $82 to $173 in the December NZ ETS auction.<\/p>\n\n\n\n