Farmers with tree blocks on their farms should register them in the Emissions Trading Scheme (ETS), whatever their plans for the trees, says a forestry consultant.
Doing nothing about the ETS was the option chosen by the ill- informed, forestry consultant Stuart Orme, of Masterton, told about 20 people at a field day at Purangi, east of Inglewood, last week.
"The least sensible action is to do nothing."
Mr Orme said there was insufficient discussion about the ETS and what it meant for forest owners.
"It's not necessary to make a decision today about what you do with the forest. The only decision you have to make is whether to register.
"You have to decide whether or not you'll apply. The Crown doesn't mind what you do.
"Whatever's not claimed will be used to offset New Zealand's emissions bill."
The primary objective of forestry was to grow good trees and the ETS established a supplementary value for trees grown for logs.
"It means that now, if the land use is better for vegetation, whether it's land that's reverting or that's being planted in trees, there's a cash flow to go with it.
"It's very much about what the best use is for the land."
Mr Orme said $1.1 billion in 55 million carbon credits was available for owners of pre-1990 forests.
"Those owners have already been caught by the legislation.
"It doesn't matter if you think the ETS is a crock. It's a matter of engaging with it."
Mr Orme said the no-risk option was for forest owners, whether they had pre-1990 or post-1989 forests, to register to claim compensation credits.
Compensation credits could be claimed for land where planting had changed from native to exotic trees, as long as it was registered before November 30. "Once it is registered, you can bank post-1989 credits safely in your New Zealand Emission Unit Register [NZEUR] account.
"If you have pre-1990 forest, since you are captured by the legislation anyway, claim your compensation credits and benefit from the tax-free value on offer."
Mr Orme said the most conservative and least risk-averse action was for forest owners to claim credits and leave them in their NZEUR accounts.
The credits could be claimed, in part or in full, and reinvested. People could also actively sell and buy credits and reinvest in forestry to gather more tradeable credits.
Under the scheme, returns had to be filed only every five years, so credits that had to be repaid because trees had been cut down could be offset by registering replacement plantings.
Purangi landowner Karen Schumacher said she and her husband, Bob, had registered 27.5 hectares of forest in the ETS and had already received 2300 carbon credits. The credits had been allocated to their NZEUR, but had not been cashed in.
A 2.3ha block of redwoods planted in 2002 had generated $14,000 in carbon credits, although the couple had not taken into account that carbon credits would be generated. Manuka was also now growing there.
They planted the redwoods because stock grazing in the area fell down the bank into the creek. "It's a good site for redwoods. We were brassed off at losing the stock in the creek, so we decided not to let them in and plant trees instead."
The money generated by the carbon credits would be used to fence the creek.
A 75ha block of mature forest on the property registered in the ETS and under a QE11 covenant was home to breeding kiwi, falcon and other native birds. Survey costs and half the fencing costs were paid for by the QE11 Trust.
The Taranaki Regional Council had also given the couple financial support for fencing and pest control on the block. The couple paid no rates on it.
Eucalypts had been planted in another area of the property, where access was poor and where there was no water. It had not yet been registered in the ETS.
Mrs Schumacher said the couple did not plan to harvest the trees, but Mr Orme suggested that the block could be logged by helicopter.
- Taranaki Daily News
Doing nothing about the ETS was the option chosen by the ill- informed, forestry consultant Stuart Orme, of Masterton, told about 20 people at a field day at Purangi, east of Inglewood, last week.
"The least sensible action is to do nothing."
Mr Orme said there was insufficient discussion about the ETS and what it meant for forest owners.
"It's not necessary to make a decision today about what you do with the forest. The only decision you have to make is whether to register.
"You have to decide whether or not you'll apply. The Crown doesn't mind what you do.
"Whatever's not claimed will be used to offset New Zealand's emissions bill."
The primary objective of forestry was to grow good trees and the ETS established a supplementary value for trees grown for logs.
"It means that now, if the land use is better for vegetation, whether it's land that's reverting or that's being planted in trees, there's a cash flow to go with it.
"It's very much about what the best use is for the land."
Mr Orme said $1.1 billion in 55 million carbon credits was available for owners of pre-1990 forests.
"Those owners have already been caught by the legislation.
"It doesn't matter if you think the ETS is a crock. It's a matter of engaging with it."
Mr Orme said the no-risk option was for forest owners, whether they had pre-1990 or post-1989 forests, to register to claim compensation credits.
Compensation credits could be claimed for land where planting had changed from native to exotic trees, as long as it was registered before November 30. "Once it is registered, you can bank post-1989 credits safely in your New Zealand Emission Unit Register [NZEUR] account.
"If you have pre-1990 forest, since you are captured by the legislation anyway, claim your compensation credits and benefit from the tax-free value on offer."
Mr Orme said the most conservative and least risk-averse action was for forest owners to claim credits and leave them in their NZEUR accounts.
The credits could be claimed, in part or in full, and reinvested. People could also actively sell and buy credits and reinvest in forestry to gather more tradeable credits.
Under the scheme, returns had to be filed only every five years, so credits that had to be repaid because trees had been cut down could be offset by registering replacement plantings.
Purangi landowner Karen Schumacher said she and her husband, Bob, had registered 27.5 hectares of forest in the ETS and had already received 2300 carbon credits. The credits had been allocated to their NZEUR, but had not been cashed in.
A 2.3ha block of redwoods planted in 2002 had generated $14,000 in carbon credits, although the couple had not taken into account that carbon credits would be generated. Manuka was also now growing there.
They planted the redwoods because stock grazing in the area fell down the bank into the creek. "It's a good site for redwoods. We were brassed off at losing the stock in the creek, so we decided not to let them in and plant trees instead."
The money generated by the carbon credits would be used to fence the creek.
A 75ha block of mature forest on the property registered in the ETS and under a QE11 covenant was home to breeding kiwi, falcon and other native birds. Survey costs and half the fencing costs were paid for by the QE11 Trust.
The Taranaki Regional Council had also given the couple financial support for fencing and pest control on the block. The couple paid no rates on it.
Eucalypts had been planted in another area of the property, where access was poor and where there was no water. It had not yet been registered in the ETS.
Mrs Schumacher said the couple did not plan to harvest the trees, but Mr Orme suggested that the block could be logged by helicopter.
- Taranaki Daily News
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