What is the Emissions Trading Scheme?
‘Emissions trading’ is a financial market-based approach for reducing emissions of greenhouse gases. Emission units – sometimes called ‘carbon credits’ – are traded between participants in the scheme.
The New Zealand Emissions Trading Scheme (ETS) is the system in which New Zealand Units (NZUs) are traded. Effectively, one NZU is the right to emit one tonne of carbon dioxide, or the equivalent amount of certain other greenhouse gases.
Forestry was the first sector to enter the ETS because of forestry’s potential to remove and store carbon emissions from other sectors.
What are the key functions of the Forestry Emission Unit Trust (FEUT)?
The purpose of the FEUT is to
- apply for allocations of New Zealand Units (NZUs) in respect of eligible Crown Forest Licensed (CFL) land;
- hold the allocated Units on trust for the beneficiaries of the eligible CFL land, and
- distribute the Units to the beneficiaries of the eligible CFL land as prescribed in a Treaty of Waitangi Settlement.