NZ ETS on track says Government

New Zealand’s Emissions Trading Scheme (NZ ETS) is working well overall, says Climate Change Issues Minister Tim Groser.

Speaking at the opening of a carbon sink forest in Marlborough owned by NZ Carbon Farming, Mr Groser says that the NZ ETS was creating the desired shift towards renewable energy and investment in forestry. There were also early signs that business was factoring the scheme into its longer-term investment decisions.

“In the forestry sector, we have left behind the unprecedented levels of deforestation that occurred in the years up to the introduction of the NZ ETS, and are now seeing good net gains in afforestation,” says Mr Groser.

“While we lost 30,000 hectares between 2005 and 2009, we have seen a net increase of 6000 hectares in 2010 and an estimated 12,000 for 2011.

“Anyone familiar with the forestry sector, however, would know that this is small beer when measured against potential plantings.”

Submissions on the proposed changes to the NZ ETS close today, following an independent review of the scheme last year. The review, entitled “Doing Our Fair Share,” considered the operation and impact of the scheme in relation to New Zealand’s economic and environmental goals.

“These proposed changes will enable New Zealand to do its fair share while ensuring that the NZ ETS doesn’t impact unreasonably on business and households,” says Mr Groser.