Information document: New Zealand Emissions Trading Scheme Draft Forestry Allocation Plan and Deforestation Exemption Policies for Pre-1990 Forest Land
Executive Summary
This document provides information about the pre-1990 forest land allocation policy and the pre-1990 forest exemption policies under the New Zealand Emissions Trading Scheme (NZ ETS). It is designed to help pre-1990 forest landowners decide whether to apply for either an allocation of New Zealand Units1 (NZUs) or an exemption from the NZ ETS. It elaborates on the information in the Draft Forestry Allocation Plan (which is attached and is being consulted on).
The Kyoto Protocol creates a distinction between forests established before and after 1 January 1990. The NZ ETS maintains that distinction and therefore includes different rules for pre-1990 and post-1989 forest land.
Deforestation of more than 2 ha of pre-1990 forest land during 2008-2012 (and any subsequent 5 year period) is automatically included in the NZ ETS, unless an exemption is obtained. To offset some of the impact of these deforestation requirements, 55 million NZUs will be allocated to pre-1990 forest landowners.
Post-1989 forest land does not have the same deforestation requirements, and landowners can choose whether or not to join the NZ ETS. Thus, they do not receive an allocation of NZUs free of charge. If they join, they are able to earn NZUs (credits) for additional carbon sequestered, and are liable for reductions in forest carbon stock.
The definition of pre-1990 forest land under the Climate Change Response Act 2002 (the Act) refers only to exotic forest species. Indigenous forests do not receive an allocation as they are not subject to the deforestation provisions of the NZ ETS. Therefore this information document and attached Draft Forestry Allocation Plan do not apply to owners of pre-1990 indigenous forest land.
If you are an owner of exotic pre-1990 forest land, one of the key decisions you need to make in the first half of 2009, is whether to:
• apply for an allocation of NZUs free of charge; or
• if you are eligible, apply to have your land permanently exempt from the NZ ETS (under the ”50 ha threshold exemption’ or the ‘tree weed exemption”).
The deadline for submissions on the Draft Forestry Allocation Plan is 28 February 2009.
If you would like more in-depth background information relating to the forestry elements of the Kyoto Protocol, or the NZ ETS, please refer to the following website www.maf.govt.nz/sustainable-forestry. It is recommended that you also refer to a supplementary guidance document – titled Forestry in the Emissions Trading Scheme Guide – available from the above website.
1 The primary unit of trade for the New Zealand ETS is the New Zealand Unit (NZU), which is the unit created and distributed by the Government. One NZU is equivalent to one tonne of carbon dioxide equivalent emissions.
Contact for Enquiries
Emissions Trading Scheme
Ministry of Agriculture and Forestry
PO Box 1127
Wellington
Or call us on 0800 CLIMATE (254 628)
