Carbon Credits
What is a Carbon Credit?
Carbon credits are a taonga and essentially intangible – that is, you can’t touch it or feel it like pounamu but they can be traded on the carbon markets like an ordinary share on the stock market.
How do I know how many Carbon Credits I have?
Basically - the more trees you have the more credits you can potentially apply for. The amount of credits you have is measured depending on; the age of the forest, the region the forest is located and the type of tree variety you have. Once this info is known a carbon value is calculated. This value is then confirmed by the NZ government, registered in their database and allocated to the owner.
How is the ETS related to Carbon Credits?
The ETS or the ‘Emissions Trading Scheme’ was enacted in NZ in 2008 and it sets out how different industries like Transport, Energy, Industrial Processes, Forestry and Agriculture should be treated when it involves either emissions or the granting of carbon credits.
How is the ETS related to Forestry?
Forestry in the ETS covers two main areas. Pre-1990 forests and post 1989 forests. No mature indigenous forests pre-1990 are eligible for carbon credits, but indigenous forests growing after 1990 are eligible. Pre-1990 exotic forests are eligible and credits are allocated based on date of ownership. Post 1989 forests are eligible and are allocated based on tree age, region and species.
How is the ETS related to Agriculture?
Agriculture enters the scheme in 2015. The Processing component of agriculture will be responsible for any obligations under the ETS. This means that any credits that will need to be purchased to off-set emissions will be completed by the Processor. Ultimately these costs will be passed on to the end consumer.
What is the Difference in Pre 1990 and Post 1989 Exotic Forests?
The key difference is pre-1990 exotic forests are a one-off allocation of carbon credits that you do not have to pay back. That is, you only receive credits once for your pre-1990 forest, even if you replant. Post 1989 forests accumulate credits annually and must be paid back at harvesting if they have been sold.Post 89 forest owners can however replant and gain more credits.
What happens if I cut down the trees?
If you have a pre-1990 forest then there will be no liability if you replant or allow the forest to naturally re-generate. If you change the land-use i.e. from forest to farm then liabilities will arise.
How much is each credit worth?
The carbon credit market in NZ is currentlybetween $15 and $20.
What is the Māori Carbon Brand?
The Māori Carbon Brand is being developed by Jason Fox and Taine Randell of Tipu Green and is designed to bring a greater premium for Māori carbon credit holders.
Where do I go to get further info?
Visit these sites:
