Introduction

 

What is the Emission Trading Scheme (ETS)

 

The New Zealand Emissions Trading Scheme (ETS) is a government program to reduce greenhouse gas emissions by establishing a market for carbon credits known as New Zealand Units (NZUs). Farmers can earn additional revenue by planting and managing qualified forests. In addition to financial advantages, participation in the ETS can help increase land sustainability and future-proof farms against climate-related concerns.

 

Why consider entering the ETS? As the agricultural sector faces increased environmental and economic challenges, many farmers seek ways to diversify their income while improving land management. The ETS provides a feasible option for landowners with marginal or erosion-prone land by offering financial incentives for establishing forests that contribute to New Zealand's climate goals. Understanding the benefits of the ETS can assist farmers in making more educated decisions about land use and business strategy.

 

Table 1: Pros and cons of joining the Emission Trading Scheme (ETS)​​

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