Media release from Climate Change Minister James Shaw and Forestry Minister Shane Jones:
A third set of fixes to the ETS has been made as the Government continues its work with industry to reach our climate change goals, Climate Change Minister James Shaw and Forestry Minister Shane Jones said.
The latest changes to the New Zealand Emissions Trading Scheme will give certainty, flexibility and incentives to participants in the ETS as the Government progresses its plan to tackle the long-term challenge of climate change.
Sensible improvements include allowing foresters using averaging accounting, to move their plantations to more suitable parts of their property and recover from storm or fire damage, without being financially penalised.
They also provide the long-sought-after detail on how to gradually reduce free allocation to major industrial emitters, which was envisaged at the creation of the ETS in 2008. This will not affect the 95 per cent free allocation to the agricultural sector.