Phil Orme from Orme & Associates travels the country talking to farmers and landowners about The Emissions Trading Scheme, and how carbon within their farming systems can offer an opportunity for them.
He says it's not necessarily all about pine trees. It's a lot of reversion, soil conservation plantings, and they all qualify and can contribute significant amounts. But many farmers don't understand the system and the opportunity that's sitting there.
Afforestation in the country is a big issue for New Zealand farmers, the economy and rural communities, I asked Phil – are the current ETS settings right in his view? “The settings haven't really changed, the emissions trading scheme basically allocates carbon for land that wasn't forest land, it's been turned into forest land."
“One of the things that happened two years ago when carbon was only around $20/t, there wasn't as much of an issue. But how it works now is if you turn farm land effectively into a tree species and it meets the criteria, you can be allocated carbon credits going forward and to a certain extent, if there's no constraints within the Regional District plans, you only have to meet the national environmental standards for production forestry if you're planning production forests."
"But unfortunately, if it's for carbon credits only you don't even have to follow those rules. I think that's the major issue. It's not so much ETS settings, it's the guidelines around allowing major land use change without having a full discussion, because there is a lot of land on farms that should be in trees. But is a whole farm conversion the right thing to do? Maybe it is but at least have the discussion.”
I asked Orme if he could make any changes to the ETS, what would they be?
“The changes would be around how much and what sort of land could get planted. I think from the personal point of view once you change food producing land into trees with the current price of carbon, it's going to be very hard to change it back again without significant hardship. There was discussion about excluding exotics from the permanent forest category, but doing that would impact 90% of the landowners that need 10 or 20, or 30 hectares on their properties that deserves to be in trees in the permanent category. So if there was going to be some form of change, then maybe set a percentage limit on how much land on a farm could go in or make it 100 hectares before you have to have a discussion. So that's where I see it you've got to keep the opportunity for the farmers who know the land best, and what they want to do on the property to keep them viable.”
"Carbon farming or lock-up-and-walk-away forests in New Zealand is short-sighted and it's a quick dollar, but I'm not convinced that's the right long term strategy for New Zealand. It doesn't require big emitters to make real change, it just allows them to dump their pollution on the land."
I asked Orme of he thought carbon farming was short sighted and if it’s a good path for this country?
“I don't think it's necessarily the right path. Planting trees is not going to solve the climate crisis, only changing behaviour is going to change the climate crisis, so this is a short term measure to get a step up, but long term? No, I don't think it's right from a personal point of view. But at the end of the day our client base is largely farmers, people who have a huge affinity with the land and people that are still farming should be allowed to choose what they do on their own properties. I think the real issue is these major full farm conversions where not enough thought has been given to the long term impact.”
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Angus Kebbell is the Producer at Tailwind Media. You can contact him here.
4 Comments
As pointed out before, the carbon price is currently too low to change polluter behavior. When it reaches a price that does change behavior, carbon farming will hands down be the most profitable land use. = conundrum. Assuming the issue of emissions is solvable, the price of carbon should ultimately come down again and be corrected by the invisible hand. As burning carbon IS the economy, the invisible hand may be MIA on this one.
Personally I believe it's high time those with trees on their land were rewarded for the social/environmental benefits such living organisms provide and I don't mean waiting 30 years for some sort of vague return after every other ticket clipper has taken a bite of everything including the plate and cutlery! Time to pay up for those growing your pollution sinks and providing you with oxygen and climate stability. Pay up and stop whining!
The government could place a levy on top of the carbon price, which would be used to pay for less polluting technology etc.
so the price increases to the emitter, the payment to the forest owner stays the same. The levy would be ringfenced, the govt can only spend it on reducing emissions.
There is over 2,000 farmers with trees registered in the ETS. By the end of this year there will be over 3,000 plus and growing fast. The stampede is on as they understand.
I trust them to decide what they do with there land. For many selling is the best result. For others planting trees is. For some no planting is.
The latest economic update from BandL shows on hill country around 50% of farmers are losing money each year. Trees or no trees this is the real problem or reality. Productive in some form yes, profitable not.
You need land to plant trees and it’s all owned by farmers.
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