MPI response to Hughes and Molloy on the ETS for small-scale forest owners

Authors: Peter Lough, Simon Petrie
Publication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2017, Issue N.Z.J.For. 62(3) 2017, pp 21-23, Nov 2017
Publisher: New Zealand Institute of Forestry

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Abstract: This is a response by the Ministry for Primary Industries (MPI) to a professional paper by Robert Hughes and Paul Molloy in the New Zealand Journal of Forestry, 61(4):33-36 entitled ‘Is the ETS worth the carbon it is written on for small-scale forest owners?’ Abstract MPI responds to a recent professional paper in the New Zealand Journal of Forestry, which posed the question - is the ETS worth the carbon it is written on for small-scale forest owners? This paper discusses and clarifies the key points raised by Robert Hughes and Paul Molloy. It explains the liabilities foresters face when trees are harvested and clarifies the costs, benefits and risks of participating in the New Zealand Emissions Trading Scheme (NZ ETS). There is no compulsion to enter post-1989 forest land in the ETS. Post-1989 forestry participation in the NZ ETS is a business decision, like any other, which requires informed decision-making and sound advice based on a participant’s specific situation. In addition, work emerging from the recently concluded review of the NZ ETS is likely to result in changes to the scheme that will reduce complexity and improve incentives for all post-1989 forestry participants.

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