No images? Click here New process and penalties for the Emissions Trading SchemeEmissions Trading Scheme (ETS) participants need to be aware of new provisions for forestry that came into effect on 1 January 2021. Incorrect emissions returns may take longer to amendETS participants are responsible for ensuring their emissions returns are correct before submitting them. Emissions returns will be processed within 20 working days if they are accurate and we do not need any more information. If an ETS participant submits an emissions return that isn’t accurate they may be charged penalties, and it may take longer to receive units they are entitled to. From 1 January 2021, any time a return is amended Te Uru Rākau must decide if a penalty applies. This happens even if the participant is entitled to units after the return has been amended. We will notify the participant if we are going to amend an incorrect return. Amending a return and considering whether a penalty applies may take longer than the previous process and we may request additional information. If we need to amend a return, it will probably not be amended within 20 working days of submission. Deadlines for any outstanding penalties or units owing from the return will be paused until the return is corrected. This may mean the participant’s unit entitlement or surrender liability is delayed. New penaltiesWhen we amend an emissions return, new penalties will apply if the participant didn’t take reasonable care preparing it. These will be 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 December’s Sustainable Forestry Bulletin or visit the Environmental Protection Authority website. Changes to transmissions of interestChanges relating to transmissions of interest in post-1989 forest land also came into effect on 1 January 2021. More information on these changes will be provided soon. In the meantime, executors and anyone who is party to a transmission of interest involving the registration of a forestry right or lease should contact the ETS Forestry Contact Centre for assistance – email climatechange@mpi.govt.nz or phone 0800 254 6283. 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. |