Forest Management Group has been heavily involved in working with the Emissions Trading Scheme (ETS) since forestry became a participant in 2008.
Understanding the ETS
The ETS 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 Paris Agreement and other international treaties.
Carbon in forestry adds a significant new income stream to traditional forest investment.
The carbon market holds huge potential for forest owners as further industries are required to offset their emissions.
Forestry bridges the gap by providing a means for emitting industries to offset their emissions by purchasing carbon units from forest owners while changes are made to reduce emissions longer term.
The carbon sequestered by forests planted on land clear at 1990 can be claimed as carbon credits. These can then be sold to emitters both here and internationally. There are also new rules for forests planted pre 1990 which owners need to be aware of.
In short, carbon offers a new and potentially lucrative income stream for forest owners. Forest Management Group can undertake work in a variety of areas including:
- Registering post 1990 forests into the ETS
- Managing carbon flows to understand repayment obligations
- Planning and managing new planting projects
- Establishment of joint ventures
- Preparing Afforestation Grant Scheme (AGS) applications
- Sale of carbon credits