According to the New Zealand Institute of Forestry (NZIF) new forest planting is no excuse for polluters to delay reducing their emissions. NZIF agrees with the Climate Change Commission that the nation needs time in the quest to reduce carbon use. Source: Timberbiz
NZIF says that recent studies show planting new forests (exotic or native) helps to buy the valuable time needed to achieve real change planned for 2035 and 2050. It says that countless independent studies have all come to the same conclusion; we must have more tree planting because the need to soak up carbon and cool the planet is now very urgent.
Failure to have these new forests will result in NZ buying units from offshore, in other words the taxpayer will pay an overseas entity to plant trees or reduce carbon, rather than invest the money in NZ.
If Government suddenly becomes the sole purchaser of forestry units, as suggested by New Zealand’s Minister Shaw, this sends a very strong message to potential new forest investors they will only have a monopolistic market in which to sell.
Removing the free market mechanism for forestry units would slash investor confidence. A lack of investment would drive NZ towards a failure to meet the Climate Change Commission target: to plant an additional 380,000 hectares of exotic and 300,000 hectares of native forest estate.
Meeting international targets is a huge challenge for NZ. The NZIF is concerned Government tinkering with rules and policy changes creates additional uncertainty in the market. The changes required in business practices as well as land use are not tinkering at the margin.
NZIF said that Minister Shaw’s proposal to nationalise Forestry units is yet another signal to long-term investors the government is having a re-think about the ETS rules.
If the plan was to sow doubt and slow down planting, then it has probably achieved its aim.
