Tree Land in the Emissions Trading Scheme
Important Questions for Tree Growing Land Owners:
- Were blocks of your trees planted before 1990?
- Do these trees have the potential to reach a minimum height of 5 metres?
- Is the canopy or crown cover more than 30%?
- Is the planted area more than 2 hectares?
- And in blocks or strips more than 30 metres wide?
If you answered yes to all these questions, expect your land to be automatically included in the NZ ETS (Emissions Trading Scheme), as part of NZ's forest carbon sink.
You'll notice that the type of tree is not considered. Orchard, woodland, arboretum, super-GM rhubarb — if it grows as described above, it's probably “pre-1990 Forest” in the ETS.
If your tall-tree canopy looks like forest when viewed from a satellite or any other survey method, expect it to be marked so on your land survey records in the government’s database (GIS).
But the NZ legislation has not yet been passed. We have had verbal indications that the NZ legislators would prefer orchard land to be excluded, as being mostly small areas of little carbon (see Sheryn Clothier's interview with Larry Burrows). As drafting of the legislation progresses we should watch carefully, and with optimism.
Meanwhile, forests planted pre-1990 (that have not been granted an exemption, below) are to be subject to emission liabilities if they are deforested...
‘Landowners with less than 50ha of pre-1990 forest on 1 September 2007 can apply to be exempt from the ETS.’
Whew. That is a choice for many tree croppers wanting to retain the right to deforest without penalty, especially if hoping to sell for their retirement or convert to a more profitable land use in the future.
But:
‘From 1 January 2008, the person who owns the forest land on 1 September 2007 will have to apply for an exemption within 18 months of the legislation being passed.’
There are some considerations for weed trees, indigenous trees and maori land.
‘The owners of pre-1990 forests will not have to meet any application or administration costs.’
We hope we won't have to confront carbon assessment costs either. But we would consider setting up a system to co-ordinate assessments to minimise travel costs etc., for any Registered Carbon Certifiers working with our members if this proves necessary – perhaps worthwhile for post-1989 participants?
The government hopes to pass this legislation in early 2008. Emissions trading is scheduled to begin on 1 January 2008.
Lots of questions? We've barely scratched the bark. [See the links below.]
What we really want to get across is a warning to owners of larger older big-tree orchards, woodlands, arboretums, about the existance of this legislation.
If you know of any landowners who may miss out on our TreeCropper magazine notice or not see the web site notice, please try to make them aware of possible liabilities. While the present carbon assessment penalty for deforesting pre-1990 forest is not huge, it could rise dramatically in a short time. We would be loathe for some of our senior most accomplished tree growers to receive a rude shock should they eventually decide to clear their old orchard land for more lucrative uses.
Pre? Post?
‘In line with the provisions of the Kyoto Protocol, ETS rules will vary according to when a particular forest was planted.’
Change? – of Government?
The Protocol has been established by international consensus but that may not discourage governmental about-faces—as recently demonstrated by Canada.
Post-1989 Forest:
ETS participation, by contrast, is voluntary - if you do nothing, then you're not in the ETS.
‘The direct costs associated with administering the voluntary participation of the post-1989 forests will be recovered from their owners.’ And you have to arrange annual carbon stock assessments among other things.
For example, will the profits from the oil-men banging on your door to buy your credits and other carbon trading sufficiently exceed these costs?
One forester urged all forest owners to join and take their credits to hold for the future. He pointed out that even though the present government has said that foresters who choose not to join the ETS will have no liabilities at harvest or deforestation, the rules may change in the future so having the credits “in the bank” will ensure that liabilities at harvest can be covered.
Do your homework well.
ETS Summarised:
We have taken a relatively narrow look at the ETS here, trying to anticipate which aspects will affect tree croppers the most. Please tell us if you perceive other concerns. We have attended MAF meetings, with answers to our questions summarised on our web site below. If you are participating, do your homework diligently. The amount of documentation is too vast to cover here, is sometimes vague, and has yet to been finalised! Be careful.
Web page of more information for tree croppers regarding carbon change issues:
www.treecrops.org.nz/cchange
A special thanks to those who helped interpret the local form this international legislation. The list includes our diligent national presidential team John and Heather Dean, North Island vice-president Murray Redpath, Dr Heather North and Larry Burrows for their learned perseverance, and our editor Sheryn Clothier and Gail Newcomb for their patience and support. I wonder how much this legislation will change in months to come.
Les Gruebner, October 2007
Disclaimer: The views expressed within these web pages do not necessarily represent the policy of the New Zealand Tree Crops Association Incorporated, nor the web site management. Any advice offered does not imply warranty of any kind.