Permanent Forest Sink Initiative Guidelines
Relationship with other legislation and schemes
Relationship with Resource Management Act 1991
Permanent Forest Sinks must comply with local planning rules and regulations.
Relationship with Part 3A of the Forests Act 1949
Land subject to a Forest Sink Covenant is not covered by Part 3A of the Forests Act 1949. However, there should be no limitations (other than the standard eligibility requirements) on a qualifying forest under Part 3A entering into a Forest Sink Covenant under Part 3B.
Relationship with the Emissions Trading Scheme (Forestry)
The PFSI operates in a similar manner to the proposed Emissions Trading Scheme (Forestry) but with a clear focus on establishing a permanent forest for storing carbon.
Under the proposed scheme, owners of forests first established after 1989 (post-1989 forest land) would have the choice of entering either the Emissions Trading Scheme (Forestry) or the PFSI and receiving all of the units and associated liabilities associated with this forest land since 1 January 2008. Owners who enter either scheme would be obliged to take responsibility for the ongoing net changes in the carbon stocks of their forests. They would receive carbon units if those stocks increase as a result of tree growth and would be required to surrender units if those stocks decrease as a result of activities or events such as harvesting or fire. The Government would retain responsibility for changes in the carbon stocks of post-1989 forests that have not entered either scheme, keeping any units earned and remaining responsible for any future liabilities.
Key differences between the PFSI and the Emissions Trading Scheme (Forestry) would be:
• PFSI creates a permanent forest sink with harvesting restrictions and limits on when a landowner can exit from the scheme.
• The PFSI requires a covenant to be registered on the land for at least 50 years.
• The Emissions Trading Scheme (Forestry) would have no harvesting restrictions, and landowners could enter and leave at anytime provided they pay back any units received.
• Emissions Trading Scheme (Forestry) participants with post-1989 forests would earn New Zealand Units (NZUs) while PFSI participants will receive Assigned Amount Units (AAUs - an international carbon credit issued under the Kyoto Protocol).
A post-1989 forest in the Emissions Trading Scheme (Forestry) could not also participate in the PFSI. However, PFSI participants would have the option of switching from the PFSI to the Emissions Trading Scheme (Forestry) up to 1 January 2010. To do so they would need to give up all rights under the PFSI and take on all obligations under the Emissions Trading Scheme (Forestry).
Relationship with the Afforestation Grant Scheme
The Afforestation Grant Scheme aims to encourage the planting of new forests on Kyoto compliant land to generate carbon credits and other environmental benefits, such as flood protection and reducing erosion. Half of the funding is available to the public via application by public tender annually; the other half is administered by Regional Councils. For both aspects of the scheme, certain criteria apply.
No harvesting restrictions are placed on the landowner. Participants own the new forests and earn income from the timber, while the Crown retains the carbon credits and meets Kyoto harvesting and deforestation liabilities. Landowners can apply for an afforestation grant to establish new forests on Kyoto-compliant land.
Land under this scheme is not eligible for the PFSI, Emissions Trading Scheme (Forestry) or the East Coast Forestry Project.
Relationship with the East Coast Forestry Project
Landowners wishing to utilise the Permanent Forest Sink Initiative also have the ability to apply for grants under the East Coast Forestry Project, which is specific to the Gisborne/East Coast district and is aimed primarily at erosion control on marginal lands. Approved activities include plantation foresty, indigenous reversion and on-farm pole planting.
Sustainable Forestry schemes decision-making flowchart
This decision-making flowchart is designed to show the relationship and assist landowners and investors choose between the Sustainable Forestry schemes outlined
Contact for Enquiries
Indigenous Forestry Unit
Ministry of Agriculture and Forestry
14 Sir William Pickering Drive
PO Box 20 280
Bishopdale
Christchurch 8053
NEW ZEALAND
Tel: 64 3 943 3700
Fax: 64 3 943 3701
Te Papa Tipu Innovation Park
99 Sala Street
PO Box 1340
Rotorua
NEW ZEALAND
Tel: 64 7 921 3400
Fax: 64 7 921 3402
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