Home NZ Emissions Trading Why Post 1989 Forest Owners should Opt In to the NZETS

Should Post 1989 Kyoto Forest Owners Opt In to the NZETS?

The question of opting in is one that post 1989 foresters are asking themselves and given the lack of understanding of the liabilities many will not. That’s a mistake made in the past by those who had the right to fishing quotas and then did not bother and ended up losing them. We have mentioned this many times before in our Carbon Monitor[1] publication and our view is you MUST OPT IN.

If you opt out or more correctly do not opt in the Government manages your credits in return for meeting your future harvest liabilities. For those who are to harvest in 10-20 years who is to say what the Government will do? When asked officials agree that current governments cannot bind future governments. Forest owners must opt in to at least preserve your rights to harvest! It’s easy to foresee at harvest time (like the pre 1990 foresters) the Government won’t be writing foresters $40,000[2] per ha cheques to take off a net $16-20k[3] per ha in timber revenue.

The measurement process for carbon returns is as simple as a MAF approved look up table so the costs of compliance for opting in is minimal for the peace of mind at harvest.

And if you don’t trade the credits you have no risk under the current Legislation.

 


[1] www.eitg.co.nz

[2] 800 tonnes CO2e per ha at $50NZ per tonne

[3] using a 350 stem per ha 600m3 per ha unpruned stand at June 2008 MAF export log prices