ETS proposal to exclude exotic forests

The Government is proposing to exclude exotic forests such as radiata pine from the New Zealand Emissions Trading Scheme (ETS) to better manage carbon farming and is asking for community feedback.

The new permanent forest category of the ETS, which comes into force on January 1 next year, currently permits exotic species and indigenous forestry to be registered in the scheme, but the Government found there was a risk that the category paired with high NZU (emission unit) prices could increase the establishment of exotic forests.

To manage this risk, it proposed changes to forestry settings in the ETS such as whether to adjust how carbon accounting applies to forests on remote and marginal to harvest land, restricting exotic forests from registering in the scheme and including opportunities for improving incentives for indigenous afforestation.

Forestry Minister Stuart Nash said it was about finding a balance.

“We want to encourage the right tree, in the right place, for the right reason. We intend to balance the need for afforestation with wider needs of local communities, regional economies, and the environment.”

He said landowners and investors have increasingly planted exotic forests as they seek higher returns as carbon prices continue to rise, but permanent exotic forests like radiata pine have potential environmental and ecological risks.

“These include pests, fire, damaged habitats for native species, biodiversity threats, and a relatively short lifespan compared to wellmanaged mixed indigenous forests.”

Waikato Federated Farmers president Jaqui Hahn said the group was supporting the proposal to exclude exotic trees such as pines from the ETS, but they would have liked it to happen sooner.

“We have so many environmental restrictions as it is. Pines are bigger than natives and have a shallow root system, so they reduce how much land we have available for other use and we need space for food.”

She said the national body of Federated Farmers made a submission to the Government regarding the proposal, so the Waikato group would not make a separate one.

Climate Change Minister James Shaw said planting more trees can help meet climate goals, but it was important to make sure all types of afforestation are well managed through the ETS and the planning process.

“Aotearoa was once blanketed with native forests, home to indigenous birds, insects and other wildlife. Today much of those ancient forests are gone, but what remains is still a vital carbon sink.”

Public submissions are open until April 22.