Issue 4 - 2 September 2008
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Forestry in a New Zealand Emissions Trading Scheme
The legislation behind the New Zealand Emissions Trading Scheme - the Climate Change (Emissions Trading and Renewable Preferences) Amendment Bill - had its second reading last week with changes made to the Bill based on the recommendations of the select committee.
Next steps:
The Bill is now going through the Committee stages that will make it legislation. This will be followed by a third and final reading and royal assent making the Bill the Climate Change (Emissions Trading and Renewable Preferences) Amendment Act.
If enacted, we will distribute a special Sustainable Forestry Bulletin outlining the final details of the emissions trading scheme. At this time, we will also launch a website specific to the ETS and related sustainable forestry initiatives: www.maf.govt.nz/sustainable-forestry. This will include information for pre-1990 forests, post-1989 forests, fact sheets, FAQs, details of other sustainable forestry programmes and decision making tools for foresters interested in the various schemes.
Permanent Forest Sink Initiative
In August, the first approved covenant under the Permanent Forest Sink Initiative (PFSI) was registered. The covenant, signed between the Government and Ararewa Station Limited, covers 362 hectares of forest located in the Waitotara Valley, Wanganui. The forest comprises 320 hectares of eucalyptus and 42 hectares of radiata pine and was planted in 2007.
MAF has received a number of other expressions of interest that could total an area of approximately 60,000 hectares. The PFSI is one of the Government's sustainable forestry programmes. It enables the devolution of carbon credits to landowners who planted permanent forests on previously unforested land. 0800 CLIMATE (254 628)
Entry into the PFSI is by way of covenant between the Government and the landowner. The scheme is complementary to the Afforestation Grant Scheme, East Coast Forestry Project and proposed emissions trading scheme. For more information please visit www.maf.govt.nz/forestry/pfsi.
PFSI regulations
When the PFSI became operational, there were still some elements under development (including the processes for applying for units for carbon stock increases and for assessing carbon). Accordingly, MAF is intending to amend the PFSI regulations and, at the same time, align them with similar aspects of forestry in the proposed emissions trading scheme. Amending the PFSI regulations will entail a public consultation process, to be advised in a later issue of this Bulletin. In the interim, MAF is liaising with PFSI participants and interested parties about a way forward before the regulations are amended.
Afforestation Grant Scheme
MAF has granted nearly $1 million in the first Public Pool Tender Round of the Afforestation Grants Scheme to establish new forest on Kyoto-compliant land (that is, land that was not forested as at 31 December 1989).
Overall, 13 applications were received of which nine will receive funding - totalling $927,000 in funding over the next two years. These projects will create 447 hectares of new forest in 2008 and 2009 at an average price of $1829 per hectare. It is expected 124 hectares will be planted this year.
Applications are now being sought for the second public pool tender. These close 31 October 2008. For more information, please visit www.maf.govt.nz/climatechange/forestry/initiatives/ags.
Under the AGS, grant recipients own the new forests and earn income from the timber, while the Crown retains the carbon credits generated under the Kyoto Protocol, and takes responsibility for meeting all Kyoto harvesting and deforestation liabilities.
The AGS offers an alternative to the proposed emissions trading scheme as a way to encourage greater levels of greenhouse gas absorption by increasing the area of Kyoto-compliant new forest in New Zealand. It is expected that these forests will have other benefits such as reducing soil erosion, nutrient leaching and flood peaks.
East Coast Forestry Project
MAF is currently assessing the 25 applications received in the 2008 application round and expects to be able to notify applicants shortly on the outcome of their applications. The applications cover more than 2500 hectares of eroding hill country in the Gisborne District.
Sustainable Farming Bulletin
MAF is introducing a "sister publication" to the Sustainable Forestry Bulletin focused on agriculture. The Sustainable Farming Bulletin will provide information on agriculture in the emissions trading scheme and related initiatives including the Sustainable Farming Fund. It will be published periodically on the MAF website (www.maf.govt.nz) and distributed by email to subscribers.
If you would like to subscribe to this new e-bulletin please email sustainablefarmingbulletin@maf.govt.nz with Subscribe: Sustainable Farming Bulletin in the subject line and your contact details in the body of the email.
Help us to keep you informed
The Sustainable Forestry Bulletin is about keeping you and others with an interest in forestry informed. So please feel free to forward it on to others who might be interested.
To subscribe to the Bulletin, please email: sustainableforestrybulletin@maf.govt.nz with Subscribe: Sustainable Forestry Bulletin in the subject line and your contact details in the body of the email.
If you have any questions relating to anything in this Bulletin or other forestry matters, please email your enquiries to: climatechange@maf.govt.nz or ring 0800 CLIMATE (254 628). If your questions are about details of the New Zealand Emissions Trading Scheme for forestry, please bear in mind there are aspects of the scheme still to be determined by Parliament, so we do not have all of the answers at this time. We will keep you up-to-date as decisions are made and information becomes available.
To unsubscribe from the Bulletin, please email sustainableforestrybulletin@maf.govt.nz with Unsubscribe: Sustainable Forestry Bulletin in the subject line.
