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Carbon Update and Carbon Forestry Seminars

Over the past three months PF Olsen has hosted three carbon forestry seminars, in Gore, Dunedin and Blenheim. The seminars were very well supported with 247 people attending in total. Attendees included forest owners, farmers, lawyers, accountants, land valuers, real estate agents and would-be forest growers.

"We appreciated the broad-based support we received from the communities for the seminars", says seminar presenter, Peter Weblin, "It demonstrated a strong and widespread interest in carbon and the emissions trading scheme. It was only unfortunate that the political process meant that there was still plenty of uncertainty about what people should do next".

 

In light of these uncertainties, PF Olsen has temporarily suspended additional seminars although we have accepted an invitation to join Horizons on a four seminar series in the southern north island in August.

For most people's circumstances, we are not in a position to recommend the commitment of capital to projects with this degree of uncertainty. We are aware of some projects being initiated now and they may do very well with an early mover advantage. But this is a risk that most people would prefer not to take on at this stage.

Despite the uncertainties, PF Olsen believes that an Emissions Trading Scheme is likely to be passed either this year or in the first half of next year. However, unless orders for additional tree stocks are placed soon, there will be insufficient tree stocks for much increased planting in 2009. It may not be until 2010 (half way through commitment period one) that planting levels increase significantly. "This is a real loss in opportunity", says Peter Clark, PF Olsen's CEO. "Planting trees on appropriate land is one of lowest cost ways for New Zealand to reduce green house gas emissions and meet its Kyoto Protocol obligations."

Rest assured that PF Olsen is closely involved in all aspects related to carbon and how clients can best take advantage of the new opportunities as they arise. We will be in touch with you as, and when, these opportunities unfold.