Whangarei Regional Forestry ETS Meeting
24 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:
• Interest in sources of supply of and demand for NZ Units (NZUs).
• Interest in whether NZUs may have a premium internationally, and the impact of Russian units.
• A view that the ETS is better than the policy options previously proposed by the Government.
• Post 1989 forests (voluntary participation in ETS):
• Clarification that there are no Kyoto units for carbon sequestered by forests between 1990 and 2008. There is however a market for such carbon [grey market] e.g. Landcare's Ebex21.
• Interest in who the ETS participant would be in cases of joint ventures, forestry rights and Māori land/ forest lease arrangements.
• Potential for overseas investment to plant forests in NZ for the credits.
• Interest in carbon sequestration rates of various species.
• Pre 1990 forests:
• Clarification of 'merchantable timber', e.g. pulp logs >10cm.
• Point that the 18 month application timeframe requires a decision before owners know the extent of their credits/liabilities.
• Point that 50ha exemption applications will be granted.
• Generic points:
• Interest in the Kyoto rules for carbon retained in harvested wood products vs carbon remaining in a harvested forest.
• Question about whether forest owners can pool into a Trust to trade credits.
• Clarification that orchards are not eligible to join the ETS.
• ETS doesn't encourage small plantings. [Afforestation Grant Scheme should].
• Value of credits/liabilities may exceed land value and effectively 'lock in' forestry.
• Concern about over-supply of wood resulting from increased planting. Alternatively, under-supply if carbon value exceeds timber value.
• Query about implications for councils' rates take based on reduced forest land value.
• Liabilities, costs and risks:
• Risks and advantages from NZU price changes rest with the ETS participant.
• Risk that the Kyoto Protocol rules may change post 2012.
• Concern that future governments might not guarantee to cover liabilities of non-ETS forests.
• Tax issues:
• Disagreement about taxing the value of carbon credits held, whether sold or not.
• Indigenous forests in the ETS:
• Clarification that scattered indigenous remnants <1ha would not be eligible. MAF will give more thought to whether scattered areas of >1ha can be pooled.
• Measurement and information needs:
• Desire for carbon measurement models soon, for valuing forests.
• On-going consultation and engagement:
• Suggestion of regional peak groups to encompass regional differences.
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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