Young pine saplings grow next to a block of mature forest Photo: RNZ / Kate Newton
The government wants the public's input on possible changes to forestry carbon farming, including imposing restrictions about pine trees.
The redesign proposal has been released, at the same time as a related review into the Emissions Trading Scheme (ETS).
The plan covers the permanent forestry category - trees planted to earn money from the ETS. Currently, exotic or indigenous forests can be registered in the permanent forest category so long as they meet certain conditions.
Options floated would tighten it up significantly, including only allowing indigenous forests and what are called transition forests (more on that below) into the permanent category.
Another option suggested included only allowing exotic forests in limited circumstances. For example: Long-lived exotics like redwoods, pine that is on Māori owned land, or small scale exotic forests planted on farms.
Transition forests are exotic forests that are actively managed to transition to an indigenous forest over time. Essentially, natives planted under the pine canopy are then helped to grow and eventually displace the exotics.
The redesign asks whether these forests should have their own separate carbon account methods. It also asks whether permanent forests should be subject to new, specific oversight, compliance and monitoring regimes.
It comes after larger than forecast increases in pine planting for carbon farming caused an outcry in rural communities. Some see it as gobbling up land that could be used to farm or grow food, and especially displaces sheep and beef farmers.
It is also currently cheaper for firms to buy carbon credits than invest to make cuts to actual emissions.
Māori are major plantation forest owners - owning about a third of plantation forestry, which will tip to over 40 percent as more Treaty of Waitangi settlements are completed - and make up about 40 percent of the forestry workforce.
Their holdings were often all that was left after more desirable land was confiscated, or what was returned to them as part of the Treaty process. It was often marginal, scattered and difficult to monetise, and some Māori see the opportunity to make revenue by selling units on the ETS.
"Forests are hugely significant to our economy, rural communities, and to Māori, both culturally and economically," Forestry Minister Peeni Henare said.
"But encouraging afforestation should not replace or delay gross emissions reductions. We need to consider how the NZ ETS can provide the necessary price for both gross emissions reductions while continuing to incentivise the planting of trees.
"Last year, the government consulted on proposals to restrict permanent exotic forests in the NZ ETS in response to concerns about the impacts on the environment and rural communities from these forests. The proposals generated wide interest, prompting the government to look further into the permanent forest category."
The announcement ensured the government would work alongside valued communities, iwi Māori, local government and the forestry sector to redesign the permanent forestry category, he said.
"Government has heard that more urgent climate action is required, with Māori communities disproportionately vulnerable and already facing the impacts of climate change. Many have voiced that more ambitious action on climate change is needed.
"For some of our Māori landowners, having exotic forestry in the NZ ETS is important."
The three key design choices that guide the redesign of the permanent forest category are:
- What forests should be allowed in the permanent forest category
- How transition forests should be managed to best ensure a successful transition
- What rules will best maximise the benefits of permanent forests in the category?
Consultation will run until 11 August 2023, and changes could be implemented by early 2025.