Government douses its proposal to limit exotic forests – صحيفة الصوت

A Government proposal to limit permanent exotic forests has been left to rot, according to a letter from the Climate Change Minister.

Earlier this year, the Government proposed that exotic trees in permanent forests would not be eligible to earn and sell carbon units.

Rural communities and the Climate Change Commission are key opponents of exotic planting. But because planting pine could be hugely profitable, foresters and landowners – including Māori leaders – vehemently opposed the suggestion.

A letter from Climate Change Minister James Shaw indicates the latter group has been, at least partially, successful. From next year, owners of permanent exotic forest are likely to be able to sell the carbon absorbed by their trees under the Emissions Trading Scheme (or ETS).

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Support for the pine tree is a recent development. Rural communities protested against farm-to-pine conversions, driven by the increasing profits that can be made from the ETS.

In addition, the Climate Change Commission has repeatedly warned against a climate strategy that relies too heavily on planting exotic trees to mop up emissions. Instead, the Government should focus on driving down the sources of greenhouse pollution, and encourage native trees to absorb any lingering greenhouse gas, the commission stressed.

However, the design of the ETS works against the commission’s desired approach.

Under the rules, polluters must surrender one NZ Unit for every tonne of emissions they produce. Some units are gifted at no charge by the Government, others can be bought at auction. Finally, polluters can purchase NZ Units from forest owners, matching the tonnes of carbon their trees absorbed.

These were typically from harvested forests, which earned units up to a set number of years (evening up the growth and logging cycles).

In 2018, the first-term coalition Government suggested permanent forests should also be able to earn NZ Units, for their whole lifespan. The Government didn’t distinguish between native forests and exotics such as pine, redwood or eucalyptus.

This opportunity will begin from January next year. With exotic species such as pine and redwoods growing quickly and the market price of a NZ Unit rising above $70, landowners and investors foresaw large profits. Natives are comparatively less profitable.

Then – after the commission came out strongly against exotic species – the Government in March proposed the permanent category would only be open to native forests.

There was some support for the idea from rural groups such as 50 Shades of Green and indigenous forest proponents.

But there was comparatively loud opposition from forestry bodies and Māori landowners.

Today, submitters to the ministry consultation on the proposal received a letter from Shaw, which indicated the Government had changed its mind.

The letter, co-signed by Forestry Minister Stuart Nash, said the Government will “take more time to fully consider options” for the ETS.

“While all decisions are ultimately for Cabinet, this means it is unlikely that we will propose closing the permanent category to exotics on 1 January 2023.”

In the letter, the ministers said they were “very heartened” by the progress made on an industry code of practice.

Shaw and Nash remained committed to ensuring forests are well-managed and have “positive long-term outcomes” – and that ETS prices remain stable. The Government wants to manage the risks to rural communities, they wrote.

Stuff contacted both ministers’ offices to confirm the accuracy of the information in the letter. Shaw was not available for an interview before publication. Nash was also unavailable, as he was overseas and about to get on a plane, his office said.

A day earlier, the Climate Change Commission repeated its views that the ETS should not incentivise the mass planting of exotic forests. The comments were made by chair Rod Carr, as he advised the Government to give the price of NZ Units sold at auction a longer rein.

“The NZ ETS currently does not distinguish between carbon removals by trees or reducing emissions. Unless this is addressed, the NZ ETS is likely to deliver mostly new plantation forestry rather than gross emission reductions,” Carr said in a statement. “This would ultimately put our economy at a competitive disadvantage relative to a decarbonised global economy and shift cost burdens on to future generations.”

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