Wanganui Regional Forestry ETS Meeting

15 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:

Concern the unit price might go too high for NZ.

Questions about liabilities of forestry processing companies.

Question about grey market carbon credits built up before 2008, and after.

Interest in what’s happening now re post-2012 international rules.

Query about leasing credits.

Interest in forest owners pooling resources.

Interest in the effects (figures) of the proposed measures on the residual government liability.

Post 1989 forests (voluntary participation in ETS):

Interest in carbon retained in harvested wood products.

Question about the 18 month time frame for opting in. Concern about price variables in this time.

Pre 1990 forests:

Questions about definitions: merchantable timber, pre 1990 forest, deforestation of indigenous forest/scrub.

Interest in replanting an area of land to offset liabilities on a different site.

Liabilities, risks and costs:

Concern about liabilities and insurance for fire and other forest (carbon) reduction through natural events (including landslips, windthrow).

Comment about the risks of unit price fluctuations.

Question about liabilities associated with non-normal forest management.

Interest in deforestation costs and risks.

Tax issues:

View that there is inequitable tax treatment between pre 1990 and post 1989 deforestation.

Methodologies for carbon measurement:

Concern about costs (and on-going costs) of carbon measurement.

Interest in costs of alternative species.

Suggestion of providing for a minimal compliance cost regime which defers audit until harvest.

Interest in the carbon volume estimates from conservative methods vs actual measurement.

Desire to provide input to development of methodologies.

Māori land/ forests:

Question about forest sink credits/liabilities with respect to settlement claims.

Concern about potential contingent liability of Māori Incorporations’ JV forests.

Farm forestry:

Desire for recognition of shelterbelts and riparian plantings on farms.

Indigenous forests:

Comment about the effect of global indigenous forests if they are included post-Kyoto Protocol rules.

Afforestation:

Need for advocacy of forestry.

Point that the nursery industry and forestry infrastructure needs reviving.

Afforestation Grant Scheme (AGS):

Interest in how open the AGS is to different species, co-benefits.

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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