Home NZ Emissions Trading Post 1989 Forestry Post 1989 issues

Post 1989 :: Issues relating to the Credits

Entry into the ETS will be voluntary for all owners of post-1989 forest. This recognises the fact that participation in the scheme may not be attractive to all forest owners because of factors like:

• uncertainty surrounding the evolving carbon market;
• the difficulties that may be faced by the owners in managing harvesting liabilities, especially those who own single age-class forests;
• monitoring, reporting, verification and administration costs.
• If the owner of a post-1989 forest decides not to enter the ETS, the credits and future liabilities associated with that forest will default to the Government.
• A time frame is needed to enter the scheme, in order to:
• provide certainty for the marketplace as to how many credits will be available for sale and purchase; and
• give forest owners time to weigh up the benefits and to set up systems and administration arrangements.

Owners of post-1989 forest will have 18 months from the passing of the ETS legislation to decide to join the ETS.

Forest owners wishing to join the ETS after this date will have to wait until after 2012 to join.