The Permanent Forest Sink Initiative (PFSI) is a government initiative to offset greenhouse gas emissions in New Zealand. It is part of New Zealand's climate change policy, intended to meet obligations to the Kyoto Protocol and other international treaties.

The scheme intends to encourage the establishment of permanent forests on land that has not previously been forest. Credits awarded to PFSI forests are AAUs which can be traded offshore. Many emitters believe credits issued under PFSI are more valuable as the forests are covenanted into permanent forest.

Eligibility is dependent on the forest being "direct human induced...". A covenant on the land title is registered against PFSI forests to ensure compliance with the PFSI, although some harvesting will be allowed.

Forest owners considering the PFSI, should also consider registering for the Emissions Trading Scheme (ETS).

Registration...