Plantation forestry in Tasmania is set to benefit from greater opportunities for carbon funding for forestry projects thanks to changes to the Emissions Reduction Fund made by the Australian Government. Source: Timberbiz
Assistant Minister for Forestry and Fisheries Jonno Duniam said the new ERF Plantation Forestry Method would boost the plantation forestry sector and the jobs and communities it supports in Tasmania and around the country.
“The Australian Government continues to make it easier for plantations to generate carbon credits under the ERF and access the $2 billion Climate Solutions Fund,” Senator Duniam said.
“Improved access to carbon credits for the plantation forestry will enable further growth of Australia’s plantation area and future wood supply and provide more carbon credits for businesses to offset their emissions and generate revenue.
“Sustainable forestry is an important source of offsets for the decades ahead, contributing to Australia meeting and beating its emissions reduction targets while growing a strong economy.”
New Forico Chief Executive Officer Ange Albertini said greater access to carbon credits for Australia’s plantation forests builds the business case for establishing new plantations.
“Carbon sequestered by forests and stored in wood and wood products, plays an important role in the Australian economy,” Mr Albertini said.
“Last year our natural capital report reported Forico was a net absorber of 1.4 million tonnes of CO2 equivalent in 2020-2021.
“The new methodology will enable the industry to continue planting much needed trees in areas which may have been converted to other uses.
“Carbon funding for forestry projects recognises the positive contribution of sustainably man-aged production forestry.”
Tasmanian Forest Products Association CEO Nick Steel said, “this outcome is a result of professional forestry experts working with the federal government to create positive changes that will help tree planting companies earn Australian Carbon Credit Units (ACCUs)”.
The new method was developed by the Clean Energy Regulator, through a co-design pro-cess with industry and stakeholders, and comes into effect today, 31 January 2022.
One ACCU is equivalent to one tonne of carbon removed from or avoided in the atmosphere and can be sold by companies to generate income, either to the government through reverse auction or in the secondary market.
“Forest industries are key to Australia meeting its net zero by 2050 commitment,” Mr Steel said.
“Trees sequester carbon whilst growing, the carbon continues to be stored in timber products and the cycle recommences with the replanting of some 11 million trees each year in Tasmania.
“Promoting more production tree planting is a win, win, win for Tasmania and the environment because not only will it help us meet our climate goals, it also provides a number of co-benefit outcomes such as helping to generate new income for landowners and increasing biodiversity and habitat for wildlife. All whilst helping to supply the vitally needed timber which our builders so desperately need”
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