Compliance and Administrative Costs of a Carbon Trading Scheme
- "Depending on the trading environment created, there would be administration costs associated with verification and reporting of sequestered carbon. Whether the Crown or Crown-nominated entities carry out this role needs careful consideration, with the preferred expectation that it sought solely to only cover its costs."
- "Administrative issues introduce large cost implications for small forest owners."
- "The likely bureaucracy and ongoing costs will outweigh the income receive from sink credits."
- "If the Government decides to proceed with the current carbon sink and livestock tax proposals, we would request that consideration be given to methods of minimising the deadweight business costs associated with accounting for and monitoring the landuse type changes noted above."
- "Transaction costs will hamper growers from participating in claiming credits. Land would be devalued, especially for syndicates (for retirement schemes) etc, when forests are harvested. Why take on the reporting hassles. I suggest that you identify land areas currently marginal for pastoral use. Swap with better forest land that in future could be more suitable for other uses."
- "The impact of logging (even when subsequently replanting) requires detailed accounting to individual forest or woodlot level, and is not sensible, considering compliance costs and one-off nature of carbon gain (there is after all a maximum carbon density possible which sets the upper limit of credit that can be claimed, yet the accounting costs appear to be infinite. Suggestion - growers get no credit (best), or such a small credit (possibly all right - as long as credit is not going to be recouped). Responsibility for maintaining carbon stocks is then the responsibility of the Government entirely. The Government gets credits, and also debits. Overall, the Government, and New Zealand should be better off if land banks are available to serve as a buffer in the event of deforestation. Regeneration of indigenous forest could also play a role, if agreed. Profits to Govt would be awarded to energy use reduction schemes, improved public transport, etc."
- "Of particular concern to landowners involved in multiple land uses are the costs associated with having to account for each land use activity separately. For example, if a landowner decided to plant trees on existing pasture land (afforest) and increase his/her livestock intensity on the balance of the property, under the proposed climate change regime he/she would be involved in two accounting exercises with its attendant administrative and monitoring costs."
- "Provision should be made for accredited individuals/organisations to take responsibility for managing a collection of individually small forest lots, and reporting these as a unit of above the minimum size. This would minimise transaction costs."
- "Aerial or satellite imagery should be sufficient by itself. The trade-off between accuracy and cost is accepted."
Contact for Enquiries
MAF Information Services
Pastoral House
25 The Terrace
PO Box 2526
Wellington, NEW ZEALAND
Fax: +64 4 894 0721
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