Consultation: Permanent forests Public Information Sessions 31 - - PowerPoint PPT Presentation

Public Information Sessions 31 August to 14 September 2018

ETS Forestry Package Consultation: Permanent forests

ETS treatment of permanent forests

Overview:

• Why do we need permanent forests
• Does the Permanent Forest Sink Initiative (PFSI) meet this need
• Key design features for the new policy to be determined

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Permanent forests: long term mitigation

• Different forest species

have different sequestration rates and total carbon stock

• The graph is an example
• nly

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• Erosion control
• Regulating water flows
• Biodiversity
• Adaptation for climate events

Non-carbon benefits from permanent forest

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• Introduced in 2007 using the Forest Act 1949, before the ETS
• Land owners can reconsider participation after 50 years
• Each uses a unique covenant on the land title:
• Describes the forest that can get carbon credits
• Details how the carbon stock change is calculated
• Discusses what can be done on the land and to the forest
• Units issued to a PFSI forest can be tracked back to that forest
• Land owner can harvest 20% basal area

Current Policy: PFSI

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Does the PFSI encourage permanent forest?

• The cost of registering land in

the PFSI is around $5000 higher than the same area in the ETS.

• Two previous consultations on

PFSI: both supportive of the permanent forests moving into the ETS.

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Detailed design decisions

• Discussion document presents 11 detailed design questions.
• Today we will focus on:
• How units will be earned, and how permanent post-1989 forest will be treated in

the ETS (design questions 1 -2)

• Whether a covenant is needed (design question 5)
• The restrictions on harvest: how we define this, and how can it work (design

question 3-4)

• Moving post-1989 (P89) forest into permanent post-1989 (PP89) (design

question 9-11)

• What happens after the restrictions end (design question 7)

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Earning units and treatment in the ETS

• Majority of ETS treatment

the same as P89, inc FMA.

• Two options for earning

units:

• Averaging or
• Stock change (preferred)
• We recognise the need to

reconsider the default yield tables.

Pine Average

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Whether a covenant is needed?

• No clear view from previous consultations: some support for an optional

covenant or did not support one

• Covenants significantly increase administrative complexity and cost for land owners

and the Crown.

• As covenants endure so does the administrative complexity, and may act as a

barrier to land owner flexibility.

• 50% of PFSI land is covenanted with another organisation

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The restrictions on harvest

• Key difference between P89 and PP89 is PP89 will not be able to be

clear fell harvested for 50 years

• The participant must maintain the land in forest and forest species for the 50

years i.e. 30% canopy cover and 5m tall

• Will allow ability to remove some trees either to promote forest

growth/management and/or use of the trees

• Controls remain in place while forest is a permanent post-1989 forest in the ETS
• Please note we are also asking for views on the 50 year period
• 50 years is the current term for the PFSI
• Simplifies access for Māori land

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Moving into permanent post-1989

• Outside the ETS:
• The participant earn units back to the start of the MERP the forest is

registered in

• If first rotation and registered in the ETS:
• The participant earn units back to the start of the MERP the forest is

registered in (and does not need to repay any units earned as P89)

• If second rotation (or later) and registered in the ETS
• Policy decision if carbon stock is between the minimum and the average:
• Repay units between current stock and average (preferred)
• Do not earn units until the average is reached

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What happens after restrictions end?

Area of forest

• utside

ETS Register as PP89 Register as P89 Area of forest

• utside

the ETS After the 50 years

P89 may register as PP89

Prior to registering Change to a P89 PP89 forest

Repay down to the average

Sign up again Repay all units 50 years

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