NZETS Gaming prohibited

May 22, 2014

The New Zealand Government budget delivered May 15 prohibits forest owners from exiting the NZETS by surrendering non NZU units. Designed to prevent arbitrage by forest owners selling NZU for $3 then surrendering ERU or CER thereby taking a significant margin and existing the scheme the legislation gave no warning to stamp out a practice that is becoming more widespread.

You can still use Kyoto units (including Emission Reduction Units) for harvesting and deforestation of forest land registered in the NZ
ETS; and for repaying over-allocated units until 31 May 2015. You can also resell them to industrial emitters and pre-1990 foresters who are deforesting until 31 May 2015, or sell them to overseas buyers.

for more information refer to the Sustainable forestry bulletin #50

http://www.mpi.govt.nz/Default.aspx?TabId=126&id=2260

Advertisements