Permanent Forest Sink Initiative Guidelines

Transfer and sale of units

Transfer of units from the Crown

A landowner may, after 1 January 2009, submit a request to the Programmes Directorate, MAF Policy to receive units. One request may be made per calendar year. To receive units in relation to the first commitment period, a landowner must submit a request to the Programmes Directorate by 31 March 2013.

Transfer of units to the Crown

Every unit generated creates an equal contingent liability which would crystallise if and when an assessment shows that the carbon stored in the forest has decreased below the level of units issued. This may be as a result of a natural event destroying or damaging a PFSI forest or a human-induced loss such as thinning to waste or harvesting. If this occurs, any such liabilities will have to be covered by the landowner through ‘replacing’ units equal to the assessed carbon stock change. The landowner is not liable to surrender more units than the number earned and transferred to the landowner’s account for any given forest sink area.

Account at New Zealand’s Emission Unit Register

The landowner must nominate an account at New Zealand’s Emission Unit Register (NZEUR) for units to be transferred. MAF must be keep informed or any changes in nominated accounts.

Further details about the NZEUR are available from the Ministry of Economic Development at: www.nzeur.govt.nz and www.eur.govt.nz.

Type of unit transferred

Landowners will have Assigned Amount Units (AAUs) transferred to their nominated registry account subject to the terms of the covenant for the period 2008-2012.

Selling of units

MAF does not facilitate the sale of units. Participants should seek their own advice on this issue.

Nothing in the covenant legally prevents participants from forward selling units. This would be a private matter between the participant and a third party purchaser of the units.

Contact for Enquiries

Sustainable Programmes
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 3040
NEW ZEALAND

Tel: 64 7 921 3400
Fax: 64 7 921 3402

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