Afforestation Grant Scheme Guidelines

Other Sustainable Forestry Legislation and Policies

New Zealand Emission Trading Scheme (NZ ETS)

Under the legislation as currently proposed, owners of forests established before 1990 - pre-1990 forests - would enter the scheme compulsorily unless they met criteria for exemption. Owners of forests first established after 1989 (post-1989 forest land) would have the choice of entering the NZ ETS and receiving all of the credits and associated liabilities associated with this forest land.

NZ ETS Pre-1990 Forest (does not currently include indigenous forests)

  • Obligation to surrender NZUs if deforesting more than 2ha of non-exempt pre-1990 forest over the period 2008-2012.
  • No obligations to surrender NZUs if harvesting and replanting or allowing forest to regenerate.
  • Opportunity to apply for one-off free allocation of NZUs.
  • No NZUs earned for carbon sequestration/tree growth.
  • Opportunity to apply for exemption from NZ ETS if less than 50ha total pre-1990 forest holdings on 1 September 2007.
  • Exemption runs with land.
  • Opportunity to apply for exemption from NZ ETS obligations if deforesting weed trees.

Owners of post-1989 forests who chose to enter the NZ ETS would take responsibility for the ongoing net changes in the carbon stocks of their forests. They would receive carbon credits called New Zealand Emission Units (NZUs) if those stocks increased as a result of tree growth and will be required to surrender NZUs if those stocks decreased as a result of activities or events such as harvesting or fire.

The Government would retain responsibility for changes in the carbon stocks of post-1989 forests that had not entered the NZ ETS, keeping any credits earned and remaining responsible for any future liabilities.

A post-1989 forest participating in the NZ ETS would not be eligible for an allocation under the AGS.

NZ ETS Post-1989 Forest (exotic and indigenous forests)

  • NZUs earned for forest growth from 2008.
  • No NZUs for forest growth from 1990 - 2008.
  • Can exit NZ ETS at any time if NZUs are repaid.
  • Eligible for ECFP at reduced grant rate.
  • If not in NZ ETS - no liability for harvesting or deforestation.
  • Participation will transfer with the sale of the land or forestry right.

Permanent Forest Sink Initiative (PFSI)

The PFSI provides an opportunity for landowners to establish permanent forest sinks and obtain tradable Kyoto Protocol compliant emission units in proportion to the carbon sequestered in their forests. To be eligible for this initiative, the land must not have been covered in forest as at 31 December 1989 and some form of active management must have been required in establishing the forest. Limited harvesting of the forests established under this initiative is allowed on a continuous canopy cover basis, so clear-fell plantation forests are not included in this Initiative.

PFSI (Permanent Forest Sink Initiative)

  • Can earn Kyoto Protocol assigned amount units (AAUs).
  • Covenant registered against land title.
  • Limited harvesting allowed.
  • Liabilities for deforestation.
  • Option to exit after 50 years provided units repaid.
  • Eligible for ECFP (grant rate not reduced)
  • Can transfer to NZ ETS as post-1989 forest within 18 months of NZ ETS legislation becoming law.

Forests planted under the AGS are not eligible for the PFSI.

East Coast Forestry Project (ECFP)

The ECFP is an afforestation encouragement and erosion control scheme specifically targeted at the land on the East Coast of the North Island.

The AGS cannot be used on land that receives funding under the ECFP.

For more information about all of these sustainable forestry schemes, please visit: www.maf.govt.nz/climatechange

ECFP (East Coast Forestry Project)

  • Government grant for soil conservation on North Island East Coast region only.
  • ECFP grant recipients may participate in the PFSI with no change in their grant.
  • ECFP grant recipients may participate in the NZ ETS but the grant will be adjusted.
  • 50 year covenants registered against title.

Contact for Enquiries

Sustainable Land Management and Climate Change
MAF
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 CLIMATE (254 628)
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