New rules proposed for carbon farming of exotic forests in future

“Climate change is a challenge we cannot postpone. The government wants to encourage afforestation to help meet our climate change targets, offset carbon emissions, and also help farmers, landowners and investors diversify their income streams,” says Nash.

He says that, under current rules, from 2023 a new permanent forest category of the Emission Trading Scheme (ETS) would allow both exotic and indigenous forests to be registered in the ETS and earn New Zealand Units (NZU).

“We are now proposing to exclude exotic species from the permanent forest category.

“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.

“Increased plantings of exotic forests are being driven by rising carbon prices as landowners and investors seek higher returns. The NZU price has more than doubled over the past year, from around $35 in late 2020 to over $80 in February 2022.

“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 well-managed mixed indigenous forests,” Nash says.

He adds that later in 2022, the Government will consult on proposals which could give local council more powers to decide under the Resource Management Act (RMA) where exotic forests are planted in their areas.

Climate Change Minister James Shaw says planting more trees can help New Zealand meet its climate goals, but it is 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,” says Shaw.

“In its advice to Government, the Climate Change Commission said we need to increase both indigenous and exotic tree planting to meet our emissions targets. But they also warned we need to reduce our overall reliance on forestry offsets, and better manage the impacts of afforestation.

“For example, a proliferation of permanent exotic forestry could result in lower long-term carbon prices and potentially limit investment in low-carbon technologies. At the same time, an increase in native forestry will require additional management efforts to eliminate pests that feed on native trees.

This consultation is an opportunity for anyone with an interest in the future of forestry to have their say. We particularly want to hear from Māori landowners. Iwi-Māori have significant interests in permanent forestry and we want ensure they are not unfairly impacted.”

“The decisions we take now will be felt decades into the future, so it’s really important we get this right,” says Shaw.

ACT Party rural spokesperson Mark Cameron says the discussion document is welcome and an overdue opening to the concerns of rural New Zealand.

“For too long, rural New Zealand has not been listened to, in fact we’ve been treated with contempt by the urban political left. We’ve said for years that carbon farming is destroying communities and creating environmental problems for years to come,” Cameron says.

“The document considers whether planting even more pine trees should be rewarded by the ETS. An environmental policy that subsidised environmental harm is bad news. ACT says environmental policy is supposed to prevent harm to the environment, not subsidise it.”

“It’s a welcome development that the Government is listening to rural New Zealanders about a long held concern,” says Cameron.