Government progressing with restricting the classes of land that can enter the ETS

Posted: 20 Mar 2024

The first carbon auction of the year sold the right to emit just under three million tonnes of greenhouse gas, earning the government $190 million, money it previously said would help fund tax cuts.

Emitters paid $64 a tonne, the legal minimum the government can sell at, ending a run of failed auctions when no permits sold.

The climate commission has warned there is a broader issue of oversupply.

Contact Energy's chief financial officer said last month the carbon price needed to rise to around $130 to make it worthwhile for companies to switch to clean energy.

National and ACT's coalition deal promised to bring in different forestry restrictions, limiting the classes of land (and soil productiveness) that can be used for carbon forestry.

Asked how the move was progressing, Climate Change Minister Simon Watts wrote through a spokesperson: "The government is progressing with restricting the classes of land that can enter the (Emissions Trading Scheme) for forests".

"The government is awaiting advice coming to ministers this week on these options, one of which will include the possibility of bringing a Bill."

Read more on RNZ News.