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Gisborne, Aug 5 NZPA - Forest owner Ernslaw One Ltd is selling the carbon credits from 7941ha of forests on the East Coast, to offset pollution generated in Europe.
“We are delighted to have been able to conclude this deal,” said managing director Thomas Song.
It demonstrated there was significant interest internationally in Assigned Amount Units (AAUs) — sovereign emmissions units traded internationally by governments — from New Zealand.
“We look forward to managing these forests for the benefit of the global environment,” he said.
The 520,000 AAUs owned by Ernslaw One have been sold to a European buyer through Hamilton-based company carbon advisory, brokerage and trading firm, Carbon Market Solutions.
The Government said in April that it was allocating up to one million emissions permits to forestry owners, a fraction of the 8 million set aside for issue this year to the sector.
Forestry is the only sector that has gone ahead in the otherwise stalled emissions trading scheme, and each emission permit — called New Zealand units (NZUs) represented a tonne of carbon dioxide-equivalent.
The Treasury in January estimated the price of carbon to be around $NZ25/tonne.
Neither the Ernslaw nor its broker company would give details about the price, or buyer, but an industry commentator said the units sold at around 10 euros ($NZ22), making the deal worth more than $11 million.
The sale did not affect the company’s future harvest from its total plantations of more than 27,720ha, as the credits will be covered by future growth of the forests.
“People tend to think the carbon market is all talk but this deal shows there is real money there,” said Carbon Solutions managing director John O’Brien.
The deal is being hailed as an industry breakthrough because it recognised the carbon sequestering value of New Zealand’s plantation forests.
Mr Song said the sale would improve the viability of forestry in Gisborne.
Further sales were possible for 2009 to 2012 but only when credits enter their register and if the Government allows free international credit trades, and does not cap the price, said Mr Song.
Mr O’Brien said the deal demonstrated that the New Zealand ETS provided a transparent and accountable system for forestry projects, with long-term commitments and liabilities for the forest owners, which helps to ensure the environmental integrity of the AAUs.
Ernslaw One is one of the largest owners of private Kyoto-compliant forests in New Zealand.
All forests owned by Ernslaw One are certified by the Forest Stewardship Council (FSC) and independently audited.
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{ 1 comment… read it below or add one }
Trees grow. They would grow without you. Why should you have credits? When the sea level rises how much of New Zealand will be there? Most of the rest of the world will be OK. Move to high land. P.S. I like NZ lamb, but too expensive. Buy British!
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