EBEX21® Newsletter Issue 16, April 2011

In this issue:

• EBEX® sells Kyoto Compliant-Credits
  
• Policy Update
  
• Farewell to Melissa
  
• EBEX credits - What makes them special?
  
• Afforestation Grant Scheme
• Call for new sites

EBEX® sells Kyoto Compliant-Credits

We have been working closely with a group of property owners and the Ministry of Agriculture and Forestry (MAF) over the last year. Most of these properties have now completed the Permanent Forest Sink Initiative (PFSI) application process and have PFSI covenants registered on their land. From these properties we have already traded over 6000 Kyoto compliant credits (AAUs). We have also completed a number of Preliminary Assessments which are designed to inform landowners about the potential size of their carbon asset without committing landowners to participation (see our website for an example of a Preliminary Assessment).

Policy Update

Default rates for carbon sequestration

There has been a change in MAF’s default rates for carbon sequestration. From the 1st of October new look up table values, which are based on the age of the forest, replaced the existing default rate of 3 tonnes/hectare. EBEX considers that the values from the table for indigenous forests are too high in most instances and landowners therefore need to take steps to mitigate potential liabilities that may occur at the time of site audit for sites larger than 100 hectares. If during future measurement the forest has not sequestered as much carbon as MAF’s table suggests, the landowner will be liable to repay the extra credits.

Field Measurement Approach (FMA)

MAF is making progress with implementing a new Field Measurement Approach. The FMA determines how sites will be measured where the forest sink area is greater than 100 hectares. Consultation occurred in late 2010 and MAF expects the FMA to be in use from the middle of 2011. EBEX made a submission with the following key requests.

• That the FMA caters for the unique characteristics of regenerating indigenous forest (the current proposal does not);
• That liability for an over-optimistic default indigenous sequestration rate is removed from participants through adoption of a more conservative default rate (currently participants with holdings > 100ha will be liable for claiming excessive credits through use of the default rate before a measurement is made);
• That public consultation occurs on all the missing detail of the FMA, such as verification of line-work used to delineate forest sink area, exactly what is to be measured on plots and how, and the quality assurance processes around participant-specific look-up tables.

Review of all afforestation schemes

MAF is also currently undertaking a review of all forestry schemes concerned with the allocation of carbon credits. EBEX made a submission on the PFSI only, which is summarised below. We have also appeared in person before the MAF Review team to speak to our submission. (If you wish to see the full submission please contact us).

The PFSI leads the international arena for forest carbon credit allocation. It should be viewed as the flagship of New Zealand’s forestry solutions because of its credibility in both the voluntary and regulatory markets. Minor changes to its operation would enable realisation of the conversion of at least 1 Million ha of marginal land to new indigenous forests. We outlined a suite of measures that shift the emphasis of the PFSI to that where fewer credits are devolved with more credibility and with significantly less risk for landowners.

Farewell to Melissa

Recently we have farewelled Melissa Brignall-Theyer as part of the EBEX team. She was a highly valued member and will be missed. We wish Melissa all the best for her future endeavours– for now Melissa wants to concentrate on her family including the newest addition!

A final comment from Melissa: I have really enjoyed working for EBEX over the last few years. I have had a lot of great conversations with many landowners, and working with them to allow their land to regenerate naturally has brought me great pleasure. I will miss the relationships we have developed. Good luck to you all and Happy carbon farming!

EBEX credits - What makes them special?

Our credits are:

Kyoto compliant		The Government uses the PFSI to issue credits (AAUs), an internationally recognised credit unit.
Permanent		The PFSI requires a covenant be placed on the forest sink area.
Additional		Under the PFSI all forests must be additional (i.e. must have established since 1990).
Monitored		All sites are monitored once every five‑ten years.
Increasing biodiversity		The EBEX monitoring includes a measure of biodiversity.
Controlling erosion		Natural regeneration permanently stabilises land as it will never be cut down.
Improving water quality		Natural regeneration reduces runoff into water catchments, which improves the water quality.
Not harvested		No harvesting is allowed under our contracts with landowners.
Sustainable		As previously described these credits provide multiple and national benefits. They have multiple environmental benefits, while providing an income stream.
NZ made		Buying our credits supports local landowners while reducing the effects of climate change and increasing native forests in New Zealand.

How do they compare to other carbon credits?

Because we don’t plant trees, there are no emissions associated with the establishment of our forests. The land is simply allowed to revert back to native forest.

Below is a table comparing EBEX credits with other NZ forestry credits.

Quality components	EBEX credits	Other PFSI credits	ETS credits
Kyoto compliant	Yes	Yes	Not necessarily
Permanence	Yes	Yes	No
Additionality	Yes	Yes	Not necessarily
Monitoring	Yes	Not necessarily	Not necessarily
Biodiversity measure	Yes	No	No
Erosion control	Yes	Yes	Until harvest
Improved water quality	Yes	Partly	Until harvest
No Harvesting	Harvesting not allowed	Harvesting allowed	Harvesting allowed
Units cancelled	Yes	No	No

Afforestation Grant Scheme 

The next tender closes 30th April 2011 for afforestation projects commencing in 2012.

Call for new sites

Over the years many landowners have contacted EBEX and expressed their intention to allow some of their land to regenerate into native forest in perpetuity and gain some income from it by selling carbon credits. The time has come to review your site and see if EBEX may work for you. If you are interested and believe your land is eligible, or if you are already registered and wish to proceed with an estimate of how much of your land is eligible, please contact us (see our website for eligibility criteria, or if you don’t have internet access phone us). Please leave a message on our answer machine or email us and we will contact you within a few days (see contact details below).

Enquiries:

Please contact Elise Arnst, 03 321 9654, or email ebex21@landcareresearch.co.nz

ISSN 1178-9190