Forestry

The forestry sector will be the first sector to be involved in the emissions trading 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 trees are not replanted or 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. All forest owners entering the emissions trading scheme will receive emissions units which they will be able to sell through the emissions trading scheme trading arrangements. 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 under the Plan of Action will complement the emissions trading scheme, and include more research, technology transfer, encouraging more use of wood products, and bioenergy.

For more information see http://www.maf.govt.nz/mafnet/index.htm