No images? Click here Penalties for forestry participants in the Emissions Trading Scheme (ETS)Te Uru Rākau – New Zealand Forest Service has made its policy on penalties for failing to correctly report on emissions and removals for forestry participants in the ETS available. This policy sets out how we will exercise statutory powers under sections 134A and 134C of the Climate Change Response Act 2002, which came into effect on 1 January 2021. These sections apply to emissions returns that cover emissions or removals occurring from 1 January 2021, and they relate to penalties for incorrect reporting. Under the new penalty regime, Te Uru Rākau – New Zealand Forest Service has less discretion for applying penalties to participants for non-compliance. Penalties are based on:
The carbon price used for calculating penalties under the new penalty regime in the 2021 calendar year is $25.60. If the participant's error meant they received too few units or surrendered too many units, the penalty is capped at $1,000. For more information on the new penalty regime that came into effect in 1 January 2021, see:
Changes to participant succession for transmissions of interest in post-1989 forest landNew requirements came into effect on 23 June 2020 for transferring ETS registered post-1989 forest land where participant succession has occurred. When an ETS participant dies and the ETS registered post-1989 forest land is part of their estate, their executor or administrator becomes the deceased participant’s representative. This no longer constitutes a transmission of interest, and the executor or administrator does not need to become a participant in the ETS. When the ETS registered post-1989 forest land is then transferred to the successor (this could be incorporated or unincorporated bodies, individuals, or any type of legal purchaser of the deceased’s estate) this is a transmission of interest. Within 20 working days of the transmission of interest, the executor or administrator and the successor must submit a Transmission of interest - participant succession form. This notifies Te Uru Rākau – New Zealand Forest Service of the transmission of interest. The successor must also submit a Mandatory emissions return (transmission) – participant succession form within the same 20 working days. Both parties (the executor or administrator, and the successor) should be aware of their obligations. Penalties may apply if either party does not meet these obligations. For more information:
ETS intentions survey findingsIn August, Te Uru Rākau – New Zealand Forest Service ran a survey for people considering registering in the ETS. This was to help us understand and plan for the volume of applications to register post-1989 forest land by 31 December 2022 (the end of the current Mandatory Emissions Return Period). The survey indicated that a number of people are planning on submitting their applications to register after June 2022. Te Uru Rākau – New Zealand Forest Service strongly recommends that these applications are submitted sooner, if possible. For applications that cannot be submitted sooner (for example, applications to register new plantings), please ensure that you provide good quality information with your application, such as photos and videos that show the current and historical land use. Providing this information when your application is first submitted will help streamline processing. This guidance document outlines what kind of information you should supply with your application. If applications to register land are not approved by Te Uru Rākau – New Zealand Forest Service before 31 December 2022, applicants:
The survey also indicated that a high proportion of respondents are unsure whether they are going to switch to averaging accounting when it is introduced on 1 January 2023. For forests registered in the ETS between 1 January 2019 and 31 December 2022, you can choose to remain with stock change accounting or switch to averaging accounting. Forests registered after 1 January 2023 must use averaging accounting (unless they are registered in the permanent post-1989 forest category). More information about averaging accounting can be found on the Te Uru Rākau – New Zealand Forest Service website. The regulatory settings for averaging accounting will released in the coming weeks. Detailed information will be put on the website once decisions are published. Publication of report on transitioning exotic plantations to native forestTe Uru Rākau – New Zealand Forest Service commissioned a report on transitioning exotic forest plantations to native forest covering the practical considerations of successfully establishing native forest and key areas for further research, including how long this transition might take, how much native forest regeneration is needed for the forest to establish, the limits of native seed dispersal, and the impacts of introduced herbivores like possums and deer. Transitioning Exotic Plantations to Native Forest: A Report on the State of Knowledge This information is guidance only and is not a substitute for, or in any way an alteration to, New Zealand law, or other official requirements. It does not constitute legal advice, and users should seek advice from qualified professionals before taking any action based on this information. |