Forestry
The forestry sector is the first sector to enter the emissions trading scheme.
The Climate Change Response (Emissions Trading Forestry Sector) Amendment Act has made a number of changes which have adjusted the dates of compliance for forestry. The final form of the overall Emissions Trading Scheme will not be known until the Select Committee completes its review of the Scheme.
Forestry plays a critical role in managing New Zealand’s carbon footprint and helping the country adapt to climate change by reducing erosion and flooding. Trees soak up carbon dioxide while they grow - but much of that carbon is released when the trees are cut down. If the land is converted to another use, this is called deforestation. Deforestation is a major source of greenhouse gas emissions globally and in New Zealand.
The emissions trading scheme has been designed to encourage new planting and better management of our forest estate. Persons who register post-1989 forest land in the emissions trading scheme and owners of pre-1990 forest land, are entitled to receive New Zealand Units (NZUs). These NZUs may be retained (to meet any future deforestation liabilities) or sold on the market. Under the government's new partnership programme with the agriculture and forestry sectors (called the Sustainable Land Management and Climate Change Plan of Action) there will also be the option of cash grants to encourage new planting by land owners. Other initiatives will complement the Emissions Trading Scheme, and include more research, technology transfer, encouraging more use of wood products, and bioenergy.
Last updated: 22 September 2009
