Forest owners applaud ETS revisions
Forest owners hope proposed revisions to the Emissions Trading Scheme will boost efficiency and help New Zealand meet its greenhouse gas reduction targets.
Forest Owners Association president Peter Weir said to date the Emissions Trading Scheme (ETS) had been applied inconsistently and was ineffective in bringing emissions down.
The Te Uru Ra¯ kau discussion paper was the first significant document to be produced by the new forestry unit established within the Ministry for Primary Industry (MPI), he said.
‘‘The Ministry for the Environment states the ETS as being New Zealand’s main tool for reducing greenhouse gas emissions so it’s important it is a credible and wellfunctioning scheme that helps us meet our climate change targets,’’ Weir said. ‘‘One attractive element of the ETS revision is the option to include averaging. This is where a carbon price is set for forests which allow for the fact that they are in continuous production.’’
He said tailored adjustments to smooth the credits and liabilities and to lower risk were changes the association had pursued for some time and would make the ETS a more attractive option.
Farm Forestry Association president Neil Cullen believed it was important the ETS encouraged more trees to be planted, especially on farmland.
‘‘Farmers looking at planting trees are nervous about the prospects of the Government distorting the carbon market, as they have in the past. Farmers would like to know what the likely range of the carbon price will be over five-year periods.
‘‘They’d like smaller woodlots to be included in the ETS. They need a system which is inclusive of all forestry, and is straightforward and easy to understand before they will significantly commit to more trees on their farms.’’
The ‘‘soft’’ floor and ceiling mechanisms suggested in the discussion documents needed to be considered. Many potential woodlot owners would want more security than a government carbon
‘‘One attractive element of the ETS revision is the option to include averaging. This is where a carbon price is set for forests which allow for the fact that they are in continuous production.’’
Peter Weir
auction, he said.
Weir said the current scheme made no allowance for the fact carbon remained locked up in timber for longer than the life of the tree it was produced from. This was recognised internationally, but in New Zealand, it didn’t flow through for the benefit of forest growers or wood producers.