Forestry plays a central role in many measures to address climate change.
The proposed Emissions Trading Scheme is under review by the Government, but the Afforestation Grant Scheme (AGS) and the Permanent Forest Sink Initiative (PFSI) are under way, and may offer new options and opportunities for land users in the hillcountry.
Afforestation Grant Scheme
This scheme 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 NZ.
$40 million has been split into two pools, one for public tender and one administered by Regional Councils. The Government retains the carbon credits for the carbon sequestered for the first 10 years. After 10 years, the land owner may enter the ETS or PFSI and claim carbon credits.
Regional Councils will allocate funds and implement their afforestation programmes directly. Successful applications will also have preferred co-benefits such as soil conservation and flood risk management, improved water quality and improved biodiversity (typically on LUC class 6e and 7e). Forestry establishment is split into two categories: 70% of the funds will be allocated to forests with high sequestration rates and 30% to forests with slow sequestration rates.
The latter includes native species or assisted reversion. A minimum area of 5 ha (can be multiples of 1 ha) is required. Shelterbelts or riparian strips less than 30 metres wide are not eligible, although margins 15 metres wide on both sides of a river will be (width of river excluded).
Land Management Officers are currently assisting with applications and seek further interest.
Permanent Forest Sink Initiative
The Permanent Forest Sink Initiative (PFSI) promotes the establishment of permanent forests on previously unforested land. It sits outside the ETS legislation and has its own legislation, so should not be affected in the current review.
The scheme trades in AAUs, or Assigned Amount Units (carbon credits), which are traded internationally and not reliant on the New Zealand ETS.