Under the New Zealand Emissions Trading Scheme (ETS), forests that were planted before 1990 will incur a large “deforestation liability” if they are harvested and not replanted, or if the forest is converted to another land use. CNI Iwi Holdings Ltd is therefore due to receive an allocation of 3 million New Zealand Units (also known as NZUs or carbon credits) under the ETS, which can be sold for cash on New Zealand and international carbon markets. Since the signing of the settlement there has been a change of Government, and the new Government has decided to review the ETS policy and legislation. The Collective has been making submissions relating to this review, as part of the Iwi Leadership Group.
At this stage, it seems likely that the legislation will still go ahead in some form, although there may be changes to it. Assuming that the legislation does go ahead, the Collective’s 3 million NZUs will be transferred into CNI Iwi Holdings Ltd.