Permanent Exotic Forest in the ETS

A government proposal to keep permanent exotic forests out of the ETS appears to have been reversed. The government had proposed, on advice from the Climate Change Commission that exotic trees in permanent forests would not be eligible to claim credits for the entire duration of their life from 2023. However, amid opposition from forestry bodies and Māori landowners, a letter from the Forestry and Climate Change ministers has said the government will “take more time to fully consider options”. This likely means that the permanent category in the ETS will remain open to exotics in 2023, although the government have not ruled out closing that category in future.