Isra-Mart srl : Forest owners quick to take up ETS offer

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Isra-Mart srl news:

Owners of Nelson forest blocks planted before 1990 have been among the quickest to apply for carbon credits or seek exemptions from deforestation rules under the Emissions Trading Scheme (ETS).

With time running out to make a decision that could make or cost them thousands of dollars per hectare, the owners of 71 per cent of the pre-1990 plantation forests in the Nelson region have so far opted for either one of two options.

There are an estimated 4000 blocks of pre-1990 forest in the region, which make up 91 per cent of the 97,000 hectares of plantation forest there.

Ben Doherty, MAF's sustainable programmes adviser for Nelson and Marlborough, said that with most forestry land in the top of the south suitable for no other land use, most owners had decided to apply for a one-off allocation of carbon credits.

With such credits currently trading at $20 a unit, owners were in line to receive a "not insignificant" windfall, he said.

For example, the owner of a 20ha block would receive credits worth more than $9000 at current market rates, with the likelihood of even more after 2013.

Those who owned less than 50ha and believed there was a possibility they might want to change the land use, such as converting it into grazing, horticulture or a lifestyle block, were opting to apply for an exemption from the ETS, he said. These were people who typically owned smaller forestry blocks of under 20ha on flatter, better-quality land.

By opting for an exemption, they were saving themselves from potential liabilities of $20,000 to $25,000 per hectare if they later changed their land use.

Mr Doherty said he was pleased with the Nelson response, which was among the best in the country, and compared with just a 30 to 40 per cent uptake in quake-hit Canterbury. With deadlines looming, he was keen to see all owners given enough information to make a decision.

Owners have until September 30 to apply to MAF for their carbon credit allocation, and until November 30 to apply for an exemption.

There were pockets of pastoral farmers who had plantations or absentee owners who relied on managers who were not up to speed with the scheme, Mr Doherty said.

MAF is holding a series of meetings from next week at the following venues:

Takaka, Monday, May 23, 6pm, Golden Bay Senior Citizens Hall.Murchison, Tuesday, May 24, 6pm, Murchison RSA Hall.Rai Valley, Wednesday, May 25, 6pm, Rai Valley Area School.Tapawera, Tuesday, May 31, 6pm, Tapawera Memorial Hall.