MEDIA RELEASE

Friday, July 15, 2011

Money can grow on trees

Poplars, pines, willows, woodlots and other farm plantings all have the potential to earn landowners money through the Emissions Trading Scheme.

Landowners with forests established before 1990 have a one-off opportunity to grab some carbon credits and Horizons Regional Council is encouraging them to do so.

To qualify for this free credit hand-out, applications must be received before 31 September 2011.

Carbon credits are a new type of agribusiness currency where one credit equals one metric tonne of carbon dioxide. These credits can be 'banked' into a personal credit account or transferred to buyers and sold for cash.

For those pre 1990 forests that qualify, up to 60 tax free credits per ha can be earned, and at the moment one credit is worth just over $15.

The Government scheme has been in place for a while now, but landowners may not be aware that the free credits can also apply to space planted poplars and willows, which are plants traditionally used for soil conservation.

They need to meet the criteria for a forest set out in the ETS rules and landowners must apply before the 31 of September this year, Horizons Land Environmental Manager Grant Cooper says time is running out for landowners to cash in on these credits.

"We encourage landowners with pre-1990 forestlands, be they pines, poplars or other types, to take action before September this year so they don't miss out on their carbon credit entitlement.

"Those large, old poplars are causing landowners some headaches as they start to break or topple over, this scheme offers a perfect opportunity for landowners to utilise their credit money to manage these old poplars and replant with new varieties.

"This is a unique opportunity to help improve their property for the future and I encourage them to take that opening." says Mr Cooper.

However, a catch-22 situation has been established by the Government which in short says a landowner will be fixed by the Crown's legislation, whether or not they apply for their credits.

If the land is deforested in the future the owner will be liable for all the carbon deemed to have been lost from that area.

This system means owners of pre-1990 forestland are entitled to credits as compensation for locking that into a permanent forest, whereas the owners who do undertake to remove pre-1990 forest land will be liable for a penalty if they log more than two hectares of land in any five year period.

Forestry Consultant Stu Orme says, "If those trees come down and are then not replanted or if the land use changes some time in the future, then the landowner will have to pay a pricey deforestation liability."

Mr Orme cannot stress the importance to landowners to get onto their credit claiming early. "It can take longer than anticipated to complete an application so do not wait or it may be to late and you could miss out."

Landowners wanting more information should contact MAF on 0800 CLIMATE, a forestry consultant or their local Horizons Land Manager.

Upcoming close off dates: * Applications for exemptions to deforest land close on 30 September 2011 * Applications for allocation of the pre-1990 forest credits close 30 November 2011

ENDS

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