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STOP PRESS!

The challenging aspect of "real-time" communication for an electronic newsletter such as Wood Matters is that no sooner than you have material to distribute, then the world changes.

Such has just happened regarding the Emissions Trading Scheme (ETS). It is now apparent that National's announced review of the ETS is likely to result in:

  1. Delay in implementation until 2010 at the earliest; and/or
  2. Significant changes in approach including the possibility of a carbon tax or a hybrid system.

PF Olsen is in discussion with MAF regarding exactly what that means regarding the current legislation and obligations (e.g. the deforestation liability). We have a meeting scheduled with MAF tomorrow morning to seek clarification.

Rather than rewrite this edition of Wood Matters, we are retaining the material as written but include the following caveats regarding Carbon Forestry and the ETS:

  1. We are expecting subsequent government announcements regarding the obligations and requirements of the newly passed Climate Change Responses Act 2008 and the Climate Change (Forestry Sector) Regulations 2008. These announcements may materially change the advice and interpretations presented in this edition of Wood Matters.
  2. We have postponed our Carbon Forestry seminar planned to be held in Taupo next week due to the uncertainty surrounding theses issues.

Whilst PF Olsen believe it is highly likely that some sort of scheme will be implemented that will encourage new planting (carbon forestry is still one of the lowest-cost ways of reducing CO2), it is very difficult to plan projects when the rules are constantly changing. Until the uncertainty is removed, there is a high risk that projects will not meet intended expectations.

Please note that the Afforestation Grant Scheme (AGS) and the Permanent Forest Sink Initiative (PFSI) are still intact and may suit some people. If you would like to discuss the suitability of these schemes, please contact us on our FREE phone 0805 PFOLSEN (0508 736 5736) or e-mail us on info@pfolsen.com.

We will continue to monitor the situation closely and keep you updated in subsequent editions of Wood Matters.