Forestry in a New Zealand Emissions Trading Scheme
Forestry in an Emissions Trading Scheme
Summary of the key features of forestry in the ETS
Deforestation: pre-1990 forests
From 1 January 2008, New Zealand will be liable for any deforestation on land that was forested on 31 December 1989. New Zealand will not earn carbon credits for increases in the carbon stored in its pre-1990 forests over the first commitment period of the Kyoto Protocol. It will not be liable for temporary reductions in the carbon stored in these forests, such as those resulting from harvest, fire or storm damage, as long as the forest is replanted or allowed to regenerate into forest.
The Government has agreed in principle that owners of pre-1990 exotic forest who decide to deforest (that is, convert to another land use) after 1 January 2008 will be liable for the carbon emitted as a result of deforestation. In this way, the potential economic benefits of deforestation will be weighed up against the environmental and economic cost to New Zealand of the resulting liability.
The Government is seeking feedback on whether or not to also include deforestation of pre-1990 indigenous forest in the ETS.
Timing of entry
Pre-1990 forests will come into the ETS from 1 January 2008.
Core obligations
The core obligations of those deforesting pre-1990 forest land will be to:
- report annually3 to the administering agency about any area deforested;
- calculate, using specified methodology, the emissions associated with this deforestation;
- surrender a number of New Zealand Units (NZUs) or other acceptable units equal to the calculated emissions.
The Government will provide assistance through the free allocation of NZUs to owners of pre-1990 forests who are affected by deforestation requirements. The total amount of assistance to owners of pre-1990 exotic forest during the first commitment period of the Kyoto Protocol (2008–12) will be 21 million units, which is equal to the previously announced deforestation cap. A further 34 million units will be available to owners of pre-1990 exotic forest over the period 2013–20. No further allocations are proposed.
If pre-1990 indigenous forests were to be included in the ETS, an additional 3.1 million units would be available to owners of indigenous forest land in the period 2008–12. A further five million units would be available between 2013-20. No further allocations have been proposed. Crown-owned indigenous forest would be included in the ETS but would not receive any units.
Table 2: Finite overall level of assistance to owners of pre-1990 forest
There will be some exemptions from the deforestation requirements. The cost of some of these will be deducted from the number of available units outlined in Table 2 before actual allocations are made to landowners
(see ‘Exemptions from deforestation liabilities’).
Landowners will be able to meet their liabilities by transferring a sufficient number of NZUs, Kyoto-Assigned Amount Units (AAUs) or other approved Kyoto units to the administering agency.4 Landowners will be able to obtain these units:
- by being gifted an allocation of NZUs (in the case of pre-1990 forests);
- through carbon sequestration (in post-1989 forests in the ETS and the PFSI); or
- by purchasing NZUs or Kyoto Protocol compliant units in domestic or international markets.
Defining deforestation
Deforestation will be defined as: “The conversion of forested land to non-forest uses, such as farmland, roads, or housing developments”.
While in no way limiting this general definition, deforestation will be deemed to have taken place if, four years after harvest, harvested land is not protected from stock and other threats, and either:
- it has not been replanted in forest species; or
- it has not naturally established a significant covering of seedlings of forest species that are capable of regenerating into forest of at least five metres in height and 30 percent crown cover (for example, because of the presence of livestock).
Land will also be deemed to be deforested if, 10 years after harvest, the forest species growing on it have not reached at least 30 percent crown cover and five metres in height.
In cases where evidence of deforestation is less decisive, the forest land will be subject to audit, under which evidence of conversion post-harvest will be assessed on the basis of:
- removal of forest residues from the site or mulching of forest residues;
- investment in non-forest vegetation such as pastoral species;
- permanent fencing within the boundary of the harvested area;
- the presence of stock at densities consistent with agricultural activities;
- establishment of farming infrastructure such as dairy sheds, houses, water treatment plants, irrigation etc.
Any two of these will be treated as proof that deforestation has occurred.
Assessing deforestation prior to 2008
Where deforestation began with the harvest of trees during or before 2007, the deforestation will be treated as if it was completed prior to the first commitment period if, by 1 January 2008:
- there were no trees standing, live or dead, on the land;5
- all merchantable timber was removed before 1 January 2008.
If both of these conditions exist, deforestation will be deemed to have taken place prior to 1 January 2008 and, no liabilities will be imposed on landowners in respect of such land.
Participants with deforestation liabilities
Participants with deforestation liabilities will be, by default, landowners, who will generally have the ultimate decision to deforest. However, there are agreements in which land and forest ownership are separated, such as leases, forestry rights and Crown Forestry Licences. These occupation rights might, on rare occasions, allow the land to be converted to non-forest uses. If a landowner can prove that a land use decision has been legally delegated to another party and he or she no longer has any choice as to whether or not deforestation proceeds, the landowner will be able to apply to the administering agency to have the obligation transferred to that third party for the duration of the legal agreement.
Landowners required to deforest to make way for a public utility (such as a road or transmission lines) will be fully compensated by the utility.
Related parties
Landowners operating as a group of companies under company or tax law will be treated as a single landowner for determining the participant(s) with deforestation liabilities and for applying the threshold exemption
(see ‘Threshold exemption’ below).
Exemptions from deforestation liabilities
Threshold exemption
To help ensure that the compliance and administration costs of the regime are not out of proportion to the environmental benefits, landowners with less than 50 hectares of pre-1990 forest across all of their landholdings on 1 September 2007 will be able to apply to the administering agency for an exemption from the deforestation requirements of the ETS. The exemption will apply to their pre-1990 forest land as at that date, and will attach to that land whether it is retained or sold. A fixed date will be necessary to avoid unlimited exemptions through subdivision and sale. Pre-1990 forest land that has been granted an exemption will not be eligible for a free allocation of units.
To avoid difficulties in verifying claims for an exemption based on historical ownership, the person who owns the land on 1 September 2007 will need to apply for such an exemption within 18 months from the passing of legislation.
All owners of pre-1990 forest will automatically be in the ETS, but can apply to the administering agency to be exempted from it. If a pre-1990 forest is less than 50 hectares and the forest owner would like to participate in the ETS (because he or she has no intention to deforest), the landowner will be able to apply to the administering agency for an allocation of units. If the owner receives an allocation of units, that pre-1990 forest will be in the ETS.
An owner of deforested land that was pre-1990 forest on 1 January 2008, and who receives an exemption, may one day wish to return the land to forestry and participate in the ETS. To participate in the ETS, such an owner will first need to meet the liability the Government incurred as a result of deforestation.
It is expected that 9.4 Mt CO2 will be emitted from exotic forests deforested under this exemption.6 Before allocations are made to landowners with pre-1990 exotic forest, these expected emissions will be deducted from the total 55 million units available.
General exemption for deforesting small areas
To further reduce compliance and administration costs, anyone who deforests less than two hectares of their total pre-1990 forest land holding during the 2008–12 period will be automatically exempted from the ETS and will not have to report this deforestation to the administering agency. This exemption will be available post-2012. Where deforestation exceeds two hectares, all the relevant deforestation will incur a liability (unless otherwise exempted).
It is expected that 1.3 Mt CO2 will be emitted from exotic forests deforested under this exemption. Before allocations are made to landowners with pre-1990 exotic forests, these expected emissions will also be deducted from the overall 55 million units available.
Weed control exemption
Action on climate change is part of environmental sustainability and requires consideration of other environmental issues. The spread of wilding conifers and other weed trees threatens more than 600,000 hectares of public and private land. Most control of weed trees does not constitute deforestation because it is carried out on scattered trees that do not meet the definition of a forest. However, removal of weed trees is expected to result in the deforestation of approximately 1250 hectares of pre-1990 forest during the 2008–12 period.
The Government believes the environmental benefit of high-priority weed control outweighs the economic cost to the Crown of deforestation liabilities. Landowners (including government agencies) wishing to carry out deforestation of pre-1990 weed trees will be able to apply to the administering agency to have the resulting liability met by the Government. A fixed budget for the 2008–12 period and an application process will help manage the Government’s liabilities and ensure that the highest-priority areas benefit the most.
The budget for weed control for the 2008–12 period of the ETS is 0.8 million units, reflecting the expected emissions from the deforestation of 1250 hectares of pre-1990 forest. The 0.8 million units for weed control will not be deducted from the units allocated to landowners.
Possible criteria for the assessment of weed control applications are that:
- the forest species is defined as a weed in the relevant Regional Pest Management Strategy;
- the forest comprises one of the tree species most frequently encountered as wildings or weeds;
- the forest area has regenerated naturally;
- the forest is located in one of the areas known for a weed tree problem;
- the forest site is susceptible to local conditions that promote weed tree spread;
- the net benefits to New Zealand outweigh the net costs.
Possible papakainga (housing) exemption
A balance is needed between the environmental and economic costs of deforestation and consideration of the unique current and historical constraints faced in the use and transfer of Māori freehold land. In consultations, Māori have expressed concerns about this issue. Many of the affected communities are economically vulnerable, and housing is a particular area of concern.
The Government intends to consult Māori on a possible specific provision for pre-1990 forest on Māori freehold land subject to Te Ture Whenua Māori Act 1993 that is deforested for the purposes of papakainga.
The Government would like to find out more about the likely areas of forest land that may be deforested for papakainga; whether an allocation of units would be adequate to cover this and whether there are particular circumstances relevant to Māori that would require a specific provision.
Allocation of units for pre-1990 forests
An assistance package to the amount of 55 million units will be available to the owners of pre-1990 exotic forest to offset some of the economic impact of the deforestation requirements under the ETS. A further 8.1 million units would be available to owners of pre-1990 indigenous forest if, following engagement with stakeholders and Māori, these forests were brought under the ETS.
Assistance will be provided through both the allocation of units and exemptions from the scheme. During earlier consultation, the forestry sector emphasised that requiring owners to take account of the climate change effects of deforestation would reduce their opportunities to profitably introduce new land uses. It might also have significant impact on land value in some circumstances. The allocation level proposed reflects the fact that a finite area of land (approximately 1.2 million hectares) is covered in pre-1990 exotic forest and, that in the 10 years prior to the announcement of the deforestation cap, long-term deforestation averages have been less than five percent.
For some landowners, particularly those with larger holdings, deforestation liabilities will be balanced by the opportunity to gain credits from post-1989 forest. A number of landowners have taken the opportunity to deforest without liability in the five years since the Government indicated the possibility of constraining this activity. Most, however, will face some economic loss from the deforestation requirements, particularly those who lose the ability to profitably convert from forestry to another land use.
How to allocate
The allocation of units is a challenging problem. A ‘first in, first served’ approach would not be efficient or equitable. A subsidised auction of NZUs would not function effectively because these units could be re-sold at the market price. A form of free allocation is therefore required.
A pro rata allocation would see the available units divided equally across all affected, non-exempt pre-1990 forest on the basis of area as at 1 January 2008. This would be relatively straightforward to implement. It would under-compensate where the land was suited to alternative uses and possibly over-compensate some other land.
A targeted approach based on the land’s suitability for alternative uses would in principle be more equitable than a pro rata allocation, providing more compensation to those facing the largest economic impacts.7 However, it would also have disadvantages. Targeting based on flexible, accurate rules would attract litigation. Targeting based on firmly legislated rules would be less open to litigation, but also less likely than a flexible approach to accurately reflect the economic loss relating to each parcel of land. In both cases, particularly the former, allocation might be complex and potentially very time consuming.
The Government has agreed in principle to a pro rata approach, which will provide both transparency and relative simplicity. (See example below.)
Example of pro rata approach for allocation of units
This example assumes:
- an overall allocation of 55 million units spread across pre-1990 exotic forests;
- minus units nominally allocated for the 50-hectare exemption for pre-1990 exotic forests;
- minus units nominally allocated for the two-hectare exemption;
- a deforestation rate of 20 percent of the exempt area;
- a carbon price of $15 per tonne of CO2.
This will give landowners with pre-1990 exotic forest an allocation of approximately 39 units per hectare, worth approximately $585 per hectare (39 units x $15 per tonne; 1 unit = 1 tonne of CO2).
For example:
A landowner with 65 hectares of pre-1990 exotic forest would receive an allocation of 2535 units (65 hectares x 39 units per hectare). Based on a carbon price of $15 per tonne, this would be worth $38,025. For a landowner who has no intention to deforest, these units could be sold without incurring future deforestation liabilities.
When to allocate
In the 2008–12 period, the Government will provide assistance equivalent to 21 million units (including units for exemptions) for pre-1990 exotic forests and 3.1 million units for pre-1990 indigenous forest, if included. The remaining units will be post-dated to be available for use from 2013 onwards.
Because many pre-1990 forests are immature, and deforestation is generally done immediately after harvest, many landowners would not be expected to deforest in the 2008–12 period, even in the absence of deforestation liabilities. This makes it appropriate to spread the cost of the allocation across the 2008–20 period by reference to the age of each stand of trees, with priority being given to trees nearing maturity.
Post-dating will allow the allocation to be completed in a single process and will match the value of each unit to the expected date of harvest of each forest. Because units will be uniquely identifiable, they will still be able to be traded prior to becoming ‘effective’ in order to meet liabilities under the ETS. The future use of the post-dated units will be made conditional on the ETS continuing to include deforestation after 2012.
To provide the administering agency with the information needed for allocating units, and to ensure that only the agreed overall level of units is allocated, landowners will need to apply to the administering agency within 18 months of the passing of the ETS legislation for their allocation of units.
Pre-1990 forest on Crown land
There are two main types of Crown-owned land under pre-1990 forest: Crown forest land subject to a Crown Forest Licence (CFL), of which there is approximately 400,000 hectares, and land administered by public authorities, of which there is approximately 20,000 hectares.
In general, public authorities that directly own pre-1990 forest land do not intend to deforest. If a public authority does wish to deforest, it will need to decide if the cost incurred under the ETS should be part of its normal budget process or, where relevant, be covered through an application to the weed control budget.
Most land subject to a CFL is likely to be under pre-1990 forest. In practical terms, land under a CFL cannot be deforested until the relevant licence has expired. However, a notional allocation to these forests is needed to provide options in the event of the land being subject to a Treaty claim or being used as part of a Treaty settlement. This is because any future owners will not be in a position to apply for an allocation of units on their own account.
The Crown will notionally allocate units for all CFL land. Future successful claimants can then be offered a choice between accepting the units notionally allocated to the relevant forest land, or not taking the units. Forest valuations would reflect whether or not claimants had chosen to accept the units. Deforestation liabilities will reduce the value of land and allow claimants a larger area of land (and associated accumulated rentals) for a given settlement amount. This approach will give claimants options as to how they wish to use the total amount of their settlement.
Monitoring, reporting and verification
Owners of pre-1990 forest will be required to report annually any area that has been deforested. When deforestation occurs, the emissions will be assessed based on New Zealand’s international deforestation obligations. The forest owner would be obliged to surrender units to cover this emission. Methodologies for assessing emissions from deforestation will be provided by the administering agency.
Options include:
- standardised tables based on species, region and age;
- specific modelling based on pre-harvest inventory;
- verifiable harvest data.
Work has begun on these options and will include the role of Registered Carbon Certifiers in assessing deforestation emissions (see ‘Registered Carbon Certifier’).
In order to protect New Zealand’s environmental credibility and integrity, there will be strict rules around what constitutes deforestation. These will include measures to prevent any perverse interpretation of the rules.
Where re-established trees are deforested before they reach the age of eight, the administering agency will determine that the onset of deforestation occurred immediately prior to the last harvest of the mature forest.
Devolution of credits and liabilities: post-1989 forests
The Government has decided in principle to give owners of post-1989 forest land the choice to enter the ETS and receive all of the credits and associated liabilities associated with this forest land. Owners who enter the scheme will be obliged to take responsibility for the ongoing net changes in the carbon stocks of their forests. They will receive NZUs if those stocks increase as a result of tree growth and will be required to surrender NZUs if those stocks decrease as a result of activities or events such as harvesting or fire. The Government will retain responsibility for changes in the carbon stocks of post-1989 forests that have not entered the ETS, keeping any credits earned and remaining responsible for any future liabilities.
This option reflects the biological basis of the carbon cycle as it applies to forests. Trees remove carbon as they grow and release it when harvested. There is a natural balance between removals and emissions that is absent from other activities, which nearly always involve emissions.
Owners of post-1989 forest will need to weigh up the costs and benefits to them in deciding whether to enter the scheme.
Eligibility
To be eligible to join the ETS, post-1989 forest land can be:
- land that was not forest land as at 31 December 1989;
- forest land that was deforested between 1 January 1990 and 1 January 2008;
- forest land that was deforested after 1 January 2008 and for which any liabilities incurred by the Crown have been remitted to the Crown.
Acceptable evidence to assist in determining post-1989 forest eligibility could include aerial photographs from around 1990, land management records or an acceptable demonstration of forest establishment dates.
Timing of entry
Post-1989 forests will have the opportunity to come into the ETS from 1 January 2008.
Core opportunities and obligations
Owners of post-1989 forests can voluntarily participate in the ETS. Those who opt to join the ETS will have core rights and/or obligations to:
- receive credits as NZUs for the increasing carbon stored in their forests (sequestration), along with associated liabilities should the carbon stored in their forests decrease (for example, through harvesting);
- report to the administering agency the relevant carbon stock changes in post-1989 forest areas that are under the ETS. Reports must be submitted at intervals of not less than one year and, at a minimum, at the end of the 2008–12 period;
- calculate the increased stock of carbon removed from the atmosphere and/or decrease in carbon emissions associated with the forest, using methodologies approved in regulations;
- receive a number of NZUs equal to the calculated sequestration; or
- surrender a number of NZUs or other acceptable units equal to the calculated emission liabilities, should emissions exceed sequestration;8
- pay direct costs associated with administration of the scheme.
Entering and exiting the ETS
Entry into the ETS will be voluntary for all owners of post-1989 forest. This recognises the fact that participation in the scheme may not be attractive to all forest owners because of factors like:
- uncertainty surrounding the evolving carbon market;
- the difficulties that may be faced by the owners in managing harvesting liabilities, especially those who own single age-class forests;
- monitoring, reporting, verification and administration costs.
A time frame is needed to enter the scheme, in order to:
- provide certainty for the marketplace as to how many credits will be available for sale and purchase; and
- give forest owners time to weigh up the benefits and to set up systems and administration arrangements.
Owners of post-1989 forest will have 18 months from the passing of the ETS legislation to decide to join the ETS.
Forest owners wishing to join the ETS after this date will have to wait until after 2012 to join.
Where post-1989 forest is not owned solely by the landowner, that forest land will still be able to be entered into the ETS. However, if the participant is not the landowner then he or she must hold a registered forestry right or registered lease.
Previously deforested land will be able to enter the ETS and receive NZUs, provided all the relevant liabilities have been remitted. Similarly, forest owners or registered forestry right holders can leave the ETS as long as all the units received for their post-1989 forest have been repaid.
Participants
Where the land and post-1989 forest are owned by the same person, the landowner will be responsible for both credits and liabilities. Where the post-1989 forest is not owned by the landowner but is held through a registered forestry right or registered lease, the holder of that forestry right or lessee will be the participant. In such a case, the holder/lessee and landowner will need to provide written confirmation to the administering agency that both parties agree to the forest entering the ETS.
This arrangement will provide an opportunity for the landowner and the holder/lessee to reach an agreement on the sharing of the credits and liabilities. When a registered forestry right or registered lease is terminated or expires, the point of obligation will automatically revert to the landowner, who will then take on the obligations and rights.
Parties who do not currently have a registered forestry right or registered lease will be able to establish either of these and become eligible to enter the ETS.
Sale or transfer of post-1989 forest (including land)
When a scheme participant transfers or sells his or her interest in a post-1989 forest, the new owner becomes the new participant. All future liabilities will become the responsibility of the new owner. Any NZUs issued prior to the transfer and any actual liabilities that existed prior to the transfer will remain with the original owner(s).
It will be important for potential vendors and purchasers of post-1989 forests to be able to determine the status of different parcels of land to ascertain whether any future potential liabilities are attached to that forest land. The ETS legislation will give any person the ability to request from the administering agency information on the designation and potential liabilities of a specific piece of land. This information will be held in a comprehensive database of forested land held by MAF.
There will be an onus on the existing participant or vendor to notify the administering agency upon any sale or transfer of that forest land and/or forestry right. There will be an onus on the transferee/purchaser to notify the administering agency of the change in ownership in order to be eligible to receive NZUs. Prior to the date of transfer of the land, it will be necessary for a final carbon stock assessment to be submitted to the administering agency.
Monitoring, reporting and verification
Participants with post-1989 forest will be required to submit a carbon stock assessment at the end of the 2008–12 period, but may elect to report more frequently at intervals of not less than one year. In accordance with Kyoto rules for the first commitment period, liabilities for decreases in carbon stocks will be limited to the number of NZUs previously received for that forest.
The carbon stock changes will be assessed from 1 January 2008.9
The number of NZUs issued in respect of a particular area of forest will be conservative and reflect the particular uncertainties of the chosen estimation method.
The options for carbon estimation methodologies will be provided by the administering agency. They will range from relatively simple to more accurate and sophisticated methods. The number of units issued will be representative of the sampling methodology chosen, that is, the more accurate and therefore expensive the methodology, the higher the potential allocation of units. The landowner will have a choice in the sampling approach, including the sample method and number of plots used, but these factors will determine the sampling error and hence the carbon units that can be claimed.
Examples of post-1989 forests whose owners opt to join the ETS
Example 1: 560 hectare radiata pine forest, comprising 20 hectares of Kyoto-compliant land planted each year for 28 years (20 hectares x 28 years).
When each age-class or 20 hectare stand reaches maturity (28 years), it is harvested and replanted. The graph shows that the total forest carbon increases over the first 28 years (the development phase of the forest), then remains relatively constant as the carbon sequestered by forest growth in the other stands is offset by the carbon emitted from harvesting in the mature stand. This means, in effect, that the liability from harvesting the trees at year 28 can be offset by forest growth in all the other stands. If each area was not replanted, the carbon stocks would fall and the landowners would start to incur liabilities.
The arrow illustrates the NZUs that could be claimed over the development phase of the forest.
Example 2: 60 hectare radiata pine forest planted on Kyoto-compliant land in 1993, 1994 and 1995.
When each of these stands reaches 28 years, it is harvested and replanted. The graph below shows that the total forest carbon increases over the first 28 years (the development phase of the forest), then decreases sharply as the three stands are harvested. However, the total forest carbon does not reach zero if the forest is replanted. In this example, it is assumed that 85 percent of the stemwood carbon is emitted on harvest and the remainder of the first-rotation carbon is emitted over several years as the stumps and roots decay. The second rotation begins to sequester carbon, so the total forest carbon remains positive. Credits would be earned while carbon stocks increased. Liabilities would be incurred as carbon stocks fell.
The arrows illustrate the NZUs that would be sequestered in the first and second rotation. The dip in the graph illustrates the associated liability from harvesting the trees. The emissions from harvesting are limited to the level of units previously earned from sequestration.
Examples of carbon sequestration under two different scenarios in post-1989 forest
Scenario 1: 20 hectares of Kyoto-compliant land planted in 1990.
Scenario 2: 20 hectares of Kyoto-compliant land planted in 2008.
* These figures have not been adjusted for precision of estimate.
- The difference in the amount of CO2 sequestered between 2008–12 reflects the age of the forest.
- One metric tonne of CO2 is equal to one NZU.
- In this example, the carbon sequestration is based on a radiata pine national average carbon yield table.
- In practice, the number of NZUs issued will be at the lower end of the specified confidence for the carbon assessment methodology used by the landowner.
- When the stands are harvested, NZUs will have to be surrendered to reflect the decrease in carbon stock resulting from harvesting.
- Changes in carbon stock will have to be verified by a Registered Carbon Certifier.
- Participants will be required to report at the end of the 2008–12 period or at more frequent intervals, but not less than annually.
Entitlement to units
Entitlement to units will be based on a carbon stock assessment certified by a Registered Carbon Certifier (see ‘Registered Carbon Certifier’). This assessment will need to use the carbon accounting methodology, or methodologies specified in the regulations.10
A participant will be entitled to receive one emission unit (NZU) for each tonne of carbon dioxide sequestered in his or her forest, or for subsequent carbon stock assessments. NZUs will be issued for carbon in excess of the previously verified carbon stock.
Units will be transferred into the landowner’s nominated account or accounts in the New Zealand ETS Registry. Changes in nominated accounts will need to be advised to the administering agency. Further information on the New Zealand ETS Registry can be found in The Framework for a New Zealand Emissions Trading Scheme.
It is important to note that as well as receiving units for sequestered carbon, participants will also be liable if there is a net decrease in carbon stock, such as from fire, storm damage or harvesting.11 In this instance, the participant will be required to transfer the appropriate number of units to the Crown.
3 During the start-up phase of the ETS it is proposed that forest owners would not need to surrender units until the end of the second year of the ETS (2009).
4 The identity and location within government of the administering agency is still under discussion and will be resolved following engagement.
5 Except where trees have been left for protection of a riparian strip.
6 This assumes that around 3000 owners will seek this exemption and that 20 percent of the exempt area will be deforested when the trees are mature.
7 For most landowners, the impact will be an opportunity cost of much less than the value of the potential liability.
8 In the first commitment period, the emissions from any given hectare of post-1989 forest are limited to the level of units previously earned from sequestration. This is referred to as the ‘fast-growing forest fix’.
9 The Kyoto Protocol does not provide credits for any carbon stock change in forests prior to 1 January 2008.
10 This methodology is currently being developed by MAF and may need to be updated over time.
11 The emissions from any given hectare of post-1989 forest are limited to the level of units previously earned from sequestration.
Contact for Enquiries
Sustainable Land Management and Climate Change
MAF
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 CLIMATE (254 628)
Contact this person
