Gisborne Regional Forestry ETS Meeting
29 October 2007
Key Themes
Introduction: These key themes are a record of points raised by participants at the meeting – they are not the consensus of the participants.
• Emissions Trading Scheme (ETS) in general:
− Clarification that forest processing enters the ETS with the 'industrial processing sector' in 2010.
− Questions about how greenfields processing developments can estimate future costs of greenhouse gas (GHG) emissions and if there will be other potential future charges for carbon.
− Concerns about inequity between greenfields projects and existing plants. Desire for encouragement of new forest processing and co-generation.
− Desire for the development of ETS systems that ensure rural communities benefit.
− Concern that the Government has the maths right this time.
− A desire for reward for positive actions, e.g. for agriculture to reduce emissions prior to 2013.
− Questions about supply and price of NZ Units.
− A view that the ETS is irrelevant in terms of water vapour as a GHG. NZ should not be a 'lemming' regarding an ETS.
− Question about what reduction in emissions will result from the ETS.
• Post 1989 forests (voluntary participation in ETS):
− Clarification that Kyoto does not recognise credit for carbon sequestered since 1990 [starts at 2008]. [However 'grey market' can buy such carbon, e.g. Ebex21].
− Be careful - carbon credits need to be paid back.
− A view that credits are a 'right to harvest' and they should be grabbed.
• Pre 1990 forests:
− Questions about liability responsibilities for Crown forest land under Treaty claims.
• Generic points:
− Crop trees are not forests with liabilities.
− Agroforestry qualifies for ETS if it meets the Kyoto definition of 'forest'.
− Seems inequitable that harvesting is seen as an instant emission.
− All forest sequestration should be recognised, to encourage more planting.
• Liabilities, costs and risks:
− Credits come with liabilities. Risk that if you sell, you may incur a huge debt buying credits (units) back at a future higher price.
− Risk of fire destroying forest and having to pay back credits.
− A concern about effect on region/economy of deforestation liability for land use change.
• Indigenous forests in the ETS:
− Unfair if landowner does not get credits/compensation like exotic forest landowners do.
− A view that indigenous forests should get the same value for carbon sequestered as exotic forests.
− Clarification that harvest of indigenous forest under a sustainable forest plan has no liabilities.
• Afforestation Grant Scheme (AGS):
− Interest in value of the grant per ha.
• Tax issues:
− Concern about option of being taxed annually on basis of the value of credits (NZ Units) held.
− [Submissions on tax proposals have closed. Copy late submissions to bryan.smith@maf.govt.nz or climatechange@maf.govt.nz attention Bryan, and he will ensure it is passed on].
• Agriculture sector comments:
− Concern about effects of all the ETS costs on hill country farmers.
Contact for Enquiries
Sustainable Land Management and Climate Change
MAF
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 CLIMATE (254 628)
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