Forestry Minister Welcomes Decision to Drop Judicial Review on ETS Fees

“The Judicial Review was initiated in response to the excessive fees imposed on the forestry sector by the previous Government,” Mr. McClay stated.

Minister of Forestry Todd McClay has welcomed the decision by forestry sector representatives to drop Judicial Review proceedings related to the Emissions Trading Scheme (ETS) fees, calling it a step towards greater collaboration and stability in the sector.

"The previous Labour government made several decisions that significantly increased the costs associated with the ETS Registry, placing an undue financial burden on forestry participants. They expected the sector to absorb these costs without consultation or justification."

Since coming into power, the National-led coalition Government has been focused on restoring confidence in the forestry sector, working closely with industry stakeholders to ensure fair and transparent regulatory settings.

"We have been engaging with forestry participants to implement cost-effective and sustainable reforms, ensuring that over 4,300 forestry participants in the ETS registry can operate with certainty and trust in the system," Mr. McClay said.

A key initiative introduced by the Government was the announcement last year of a 50% reduction in ETS registry participation costs for forest owners. Additionally, a Forestry Sector Reference Group was established to explore further cost-saving measures over the next year.

"This Government is committed to backing forestry as a critical pillar of our economy. The industry will play a vital role in achieving our ambitious goal of doubling exports by value within the next decade while also contributing significantly to New Zealand's climate change commitments," Mr. McClay emphasized.

He also highlighted that the Government is committed to reducing unnecessary regulatory barriers and ensuring that forestry businesses have the right incentives to invest and grow sustainably.

The forestry sector has welcomed these moves, with industry leaders acknowledging the importance of a cooperative approach in shaping policies that support growth and environmental responsibility.

"The decision to drop the Judicial Review marks a turning point where we can focus on practical solutions that benefit the industry and the country as a whole. By working together, we can create a robust and sustainable forestry sector that contributes to both economic prosperity and environmental stewardship," Mr. McClay concluded.