Ebex21 News

EBEX21® Newsletter Issue 17, November 2011

Field assessmentIn this issue:

EBEX Update

Since our last newsletter in April, we have three properties that have successfully sold AAUs. We have also completed a number of Preliminary Assessments which are designed to inform landowners about the potential size of their carbon asset (see our website for an example of a Preliminary Assessment).

Field Measurement Approach

The new Field Measurement Approach (FMA) is in force as of 1 September 2011. The FMA is a tool to determine the change in carbon stocks in a forest by creating participant-specific look-up tables.

The key features of the FMA are:

For more information on the FMA and the full guide see the MAF website: http://www.maf.govt.nz/forestry/forestry-in-the-ets/post-1989-forest-land-voluntary-participation/field-measurement-approach

Review of afforestation schemes

A recent review of afforestation schemes, including the PFSI, was undertaken by the Ministry of Agriculture and Forestry. The PFSI is seen to be a permanent, stable solution providing access to both regulatory and voluntary carbon markets. The review concluded that the PFSI is a valid scheme and should continue as a separate entity to the ETS (forestry). To date, MAF have not publicly released their response to the Afforestation Schemes Review. The full review is available at: http://www.maf.govt.nz/news-resources/consultations/forestry-schemes-review

Carbon Insurance

Commercial carbon insurance is now available in New Zealand. This includes carbon in regenerating indigenous forests and forests set aside as permanent carbon sinks. There are currently two firms in New Zealand offering carbon insurance:

Liability for carbon losses are the responsibility of the landowner according to the PFSI Regulations. A recent devastating example illustrates the potential liability that can occur, but the benefits of self-insurance as a standard EBEX21 process offers a useful model for wider consideration.

fire damage

Photo 1: Liability for carbon loss is the responsibility of all PFSI landowners. This devastating fire burned ~300 ha of land being registered into the PFSI. The EBEX21 model offers an economically viable insurance option.

A massive fire ripped through ~300 ha of Hinewai reserve (Banks Peninsula) on 12th/13th July. The fire was started by a lightning strike that coincided with strong NW winds. The fire ran downwind with the wind but also burned uphill and upwind under the dense gorse canopy to the boundaries of the property. It was concentrated in the youngest stands of dense gorse with native tree seedlings under. Fire breaks along tracks and purpose-built water ponds on the property were all used to successfully contain the fire.

Hinewai is in the process of being registered within the PFSI so we have been able to exclude the burned area from their current forest sink. However, the incident has served as a reminder of the potential value of a group-insurance scheme, especially where insurance premiums are beyond the reach of landowners. This might be the case on low-yielding regenerating sites.

For example, before the advent of the PFSI, EBEX21 properties placed a small proportion of their land-area into a common self-insurance pool to accrue “non-sale” carbon credits. The idea is that carbon loss as a result of an event on one property will be more than compensated for by the “non-sale” credits accumulating in the collective pool. The recent Afforestation Schemes Review (http://www.maf.govt.nz/news-resources/consultations/forestry-schemes-review) picked up on this recommendation from the EBEX21 submission and recommended ‘A Government supported or facilitated self-insurance scheme could help overcome the perceived risk.’ We would suggest the Hinewai example shows the risk is more than perceived and we commend investigation of a self-insurance scheme facilitated by Government.

Carbon Pricing

Over the past year the gross price of carbon has dropped significantly from a high of $22/tonne in 2010 to a current price of approximately $14/tonne. Please see www.commtrade.co.nz for live carbon prices.

Enquiries:

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

ISSN 1178-9190

 

Newsletter content copyright © Landcare Research 2018
ISSN 1178-9190

Enquiries:
Please contact May Chang, 03 321 9831, or email ebex21@landcareresearch.co.nz
www.ebex21.co.nz

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