Permanent Forest Sink Initiative Guidelines
Introduction
The Permanent Forest Sink Initiative (PFSI) is one of the Government’s sustainable forestry programmes. It enables private landowners to receive Kyoto-compliant carbon units from the establishment of new permanent forests. Entry into the PFSI is by way of a covenant between the Government and the landowner.
Forests play a vital role in the management of New Zealand’s carbon footprint by converting carbon dioxide from the atmosphere into carbon stored in wood. They may also assist with reducing the likely impacts of climate change. For example, forests can reduce erosion, nutrient leaching and flood peaks.
The PFSI is complementary to the Afforestation Grants Scheme (AGS) and the proposed New Zealand Emissions Trading Scheme as it applies to forestry. (See Relationship with other legislation and schemes section). These schemes are part of a range of initiatives introduced by Government for tackling climate change.
Key differences between the PFSI and other forestry programmes are outlined in this guide along with a flow chart to assist landowners in deciding which forestry initiative best suits their circumstances.
You may be interested in participating in the PFSI if you are:
• A landowner who, since 1 January 1990, has established exotic or indigenous forest on land that was non-forest land on 31 December 1989.
• A landowner with reverting forest which has resulted from active land use change – e.g. retiring farmland from grazing, provided the land was non-forest land on 31 December 1989.
• An investor interested in growing permanent forests to earn Kyoto-compliant carbon units.
The PFSI creates a business opportunity for landowners and investors who will receive carbon units for the increases in carbon stored in the forest. Restricted harvesting is permitted in addition to earning units, but participants should be aware that they are liable for any net loss of carbon stored in the forest resulting from harvesting or any other cause up to the limit of units received on any area of land.
Under the Kyoto Protocol, forests established since 1 January 1990 on land that was not forest land as at 31 December 1989 generate carbon credits. These units can be used by companies to offset their carbon emissions under the proposed Emission Trading Scheme or may be sold to companies who wish to voluntarily offset their emissions.
Potential investors in the PFSI should seek independent professional advice on market prospects for trading carbon 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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