New Zealand - ETS will outlive Kyoto

Land owners planting carbon forests in New Zealand have been assured that the emission trading scheme (ETS) will survive when the Kyoto Protocol ends in 2012.

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Environment Minister Nick Smith, Agriculture Minister David Carter and Prime Minister John Key speaking at forest industry conferences last week emphasised the importance of new forest plantings to New Zealand’s future. They also went out of their way to reassure would-be tree planters about the future of the ETS.

“Forestry is a long-term investment and land owners need certainty about the ETS rules. The government has got that message,” said Dr Smith, who was the most explicit with his assurances. “The preference of the government is that there is a post-Kyoto agreement. But if it doesn’t happen you can have a high level of confidence that an ETS framework will remain in place, as will the treatment of forestry within it.”

He said he couldn’t speak for future governments, but emphasised the fact that all the major political parties support an ETS. “Any political debate will not be about the role of forestry in an ETS. It is going to be around how fast you bring in other sectors and how fast you phase out protection for emitters.” Dr Smith said it was hugely difficult to get a read on the long-term prospects for an international agreement to replace Kyoto. This may become clearer at the next round of United Nations climate change talks which are being convened in Cancun, Mexico, later this year.