Post-Quake Farming Field day Adrian Loo Date: October 2019 - - PowerPoint PPT Presentation

Post-Quake Farming Field day

Adrian Loo Date: October 2019

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Introduction

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One Billion Trees

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One Billion Trees Programme (1BT)

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1BT - Direct landowner grants

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1BT – Application process

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1BT Criteria

Right to plant: you must be the owner of the land,

• r

you must have the right to plant on the land. Planting on forest land. The land must:

• not be 'forest land' at the time of

application

• not have been forest land for the

last 5 years Right tree, right place, right purpose Maximum planted area: 300 hectares in one year. Minimum canopy width: Plantings/establishment must have an average minimum canopy width of 30 meters. Minimum size: Indigenous mix = 1 ha Mānuka/kanuka, regeneration and Exotic = 5 ha

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1BT farm eligibility

Mapping is important!

Emissions Trading Scheme (ETS)

The Emissions Trading Scheme is a national response to climate change

• Earn or pay for carbon credits (NZUS)
• Purpose to reduce our emissions
• 30% below 2005 levels by 2030

When NZU’s are awarded – they go into their NZEUR

• account. They sit in this ‘bank account’ with no value until

the are sold to market.

Emitters buy NZU’s to surrender to the Government

• Industrial Processes (Iron, Lime, Glass, Gold) - EMITTERS
• Liquid Fossil Fuels (Petrol, oils, diesels, etc) - EMITTERS
• Stationary Energy (Electricity generation) - EMITTERS
• Waste (Landfills) - EMITTERS
• Processing, exporting animals) - EMITTERS

Emissions Trading Scheme (ETS)

NZUs are sold/brought on trading platforms

• Usually large parcels
• Can buy/sell at SPOT pricing or forward sell/buy

NZU price has been historically volatile

• Recently stabilised close to the $25 cap
• Future projections have been positive for NZU prices

ETS – Land classification

▪ Pre90 is land that was in trees before 1st Jan 1990 ▪ Pre90 was given a one-off payment of carbon credits ▪ Have to replant Pre90 area, if not liable for a fine Post-89 is land that was not in trees after 31st December 1989 ▪ Have a choice to enter the ETS ▪ Not entering = zero risk = zero reward

Forest Land is either

“Pre90”

• r

“Post-89”

2019 2019 1989 1989

Under 100 ha

Measuring Carbon

Over 100 ha

The new ETS – “Averaging”

Will you be in the new or old scheme?

• All forests planted in 2021 will be in this

scheme by default

• Any forest planted 2019/2020 will have the
• ption to stay under the existing or transition

What will the average age be? ▪ Depend on species and harvest age ▪ Year 18 suggested for harvesting 25-35 year old radiata ▪ The longer you leave trees standing the higher the average Due to the complexities and hesitance to sell NZUs – the ETS for forestry is changing….

• One-off allocation of NZUs
• Each year up to age 18-20

Averaging – Advantages/Disadvantages

Advantages ▪ No requirement to pay back any loss of credits ▪ E.g. harvesting, fire, wind requires no pay back ▪ Only required to replant ▪ NZUs sit in the owners account and can be sold when it suits ▪ Reduced costs/complexity for Owners and Managers ▪ More likely to sell them Disadvantages ▪ Only receive carbon for part of 1 forest rotation ▪ Second rotation is a timber only investment

Confidence in the ETS

Paris Agreement Ratified Zero Carbon Act when passed $25 Fixed Price Option to be removed 2020, when auctioning begins, no later than end of 2022 Introducing a Price Floor Productivity Report (300+ page report with projections) Forestry NZ’s ‘only easy fix’ 2 for 1 deal no longer

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Thank You