NEW ZEALAND — Let’s not sugar coat it: this year was a tough year for forestry in the New Zealand Emissions Trading Scheme (ETS). It’s especially frustrating as we had begun to believe the government’s promise, made just after it took power in late 2023, to “restore credibility in the ETS”. Indeed, this promise looked plausible up until quite recently. After all, the LUC restrictions, while unpopular among forestry companies and investors, had been clearly communicated long before the 2023 election. So no surprises there – except for a pleasant surprise in August, when the government announced it would not adopt the Climate Change Commission’s somewhat perplexing recommendation to reinject about 14 million of unsold auction NZUs from 2028 to 2030. The positive streak finally ended in October when the government began a staccato of policy tweaks that have cumulatively undermined confidence in the government’s commitment to climate change mitigation and, by extension, the ETS.