The Emissions Trading Scheme (ETS)

The Emissions Trading Scheme (ETS) is the New Zealand Government's key tool for meeting international and domestic climate change targets. The scheme aims to encourage New Zealanders to grow trees to offset and reduce greenhouse gas emissions.

Through the ETS, carbon sequestration from forestry planted on eligable land can add a significant income stream to traditional forestry as more and more industries are required to offset their emissions by purchasing carbon credits.

For those operating farms that emit greenhouse gases apportioning part of their farmland and planting a woodlot means they can potentially reduce their livestock biological emissions by sequestering carbon from trees.

Although the ETS might seem like a straightforward opportunity to increase your forestry returns or offset emissions, there are a number of aspects that need to be understood and managed to participate in the ETS.

Morice can assist in a variety of areas when it comes to the ETS including:

Under the current accounting approach, surrender of units may be required upon forest harvest. The carbon surrender equation can become complex based on the enduring and residual carbon, and the age of the trees. Morice can help you understand your carbon profile so you can sell to a safe level and know your liabilities well in advance.

As well as having your land mapped and analysed for forestry suitability it is also highly recommended you have a feasibility report produced to determine the business case. This will put numbers around: preparation and planting costs, ongoing maintenance, carbon cash flows, harvest / yield returns, and other economic factors that contribute to the overall investment.

When it comes to complying with the ETS and MPI obligations on an ongoing basis, there is a lot to consider. Every year between January and June emissions returns are filed to claim carbon credits in a forest or woodlot for the previous year(s). Morice can take care of filing this return and the administration duties that go with it.

To have your land eligible for income generation through carbon sequestration, you first need to have your property mapped and analysed to ascertain its suitability for forestry.

Morice can assist with direct landowner grants from the One Billion Trees Fund and regional council.  We have the necessary knowledge to make MPI applications and assist the landowner.

Registering a post-1989 forest or woodlot with the Emissions Trading Scheme (ETS) is voluntary and allows the  forest owners to generate carbon credits and sell them to emitters.

The sale and purchase of carbon credits requires a degree of management and administration. In short, the forest owner (sequester) holds an NZU account with MPI and annual returns are filed to claim credits. Credits can then be held or on sold to a willing buyer. Morice can assist with the sale of units. 

Call Morice

Call Morice to get all your bases covered when it comes to the ETS and your farm or forest.