Afforestation Grant Scheme
If carbon credits, emission trading and Permanent Forest Sink Initiatives appear confusing and a compliance nightmare, the Afforestation Grant Scheme (AGS) may be more suitable.
Two separate funding pools exist - one administered through MAF and the other through regional councils. Grants are paid to landowners upon planting in exchange for the Crown owning the associated carbon credits for 10 years.
The landowner owns and manages the forest and after the 10-year contract expires, reclaims full rights - including the ability to harvest without penalty, join whatever emissions trading scheme exists at the time and sell carbon credits generated after the initial 10-years, or use the credits to offset on-farm emissions.
Of course, certain criteria apply:
- the land must be have been 'not in forest' as at 31 December 1989 (or Kyoto compliant);
- the species planted must be approved by MAF (so they can measure carbon sequestration rates);
- the forest must be planted at a minimum of 750 stems per hectare;
- at least five hectares must be planted, though this can be in multiple one-hectare blocks or along a waterway;
Half of the fund is administered through MAF, half ($2.5M in 2010) by regional councils who have extra emphasis on altering land use to sustainable practices. Soil conservation, flood risk, water quality and biodiversity are taken into consideration.
Regional Council grants vary depending on the species planted - low sequestration species (natives) receive $1000 per hectare, while exotics can qualify for $2400 /ha. There are two funding rounds per year – applications close 31 October and 31 April.
And, the crown accepts the risk on the carbon credits of fire or acts of god.
For further information contact your regional council or see www.maf.govt.nz/climatechange.
TreeCropper Issue 59 September 2009
