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The Emissions Trading Scheme and Forestry - May 2012

Carbon Price

NZU prices traded through April in the $7 to $8 range but fell below $7 at the end of the month and are currently trading around $6.20. This decline is a combination of a volatile European market, lack of demand domestically and increased volumes being offered on the market.

Important Deadlines

The Ministry of Primary Industries (formerly MAF) has estimated there are 260,000 hectares of eligible post-1989 forest land that is not yet registered in the ETS. If you are the owner of some of this forest land and intend to register in the ETS, you must take action now.

Why?

To claim your 2008 to 2012 NZUs, your forest must be registered in the ETS by the 31 December 2012. Otherwise you will miss out on 5 years worth of NZUs. The registration process can take some time and you certainly don't want to leave it to the last minute as there may be a flood of applications towards then end of the year.

It is even more time critical if you have more than 100 hectares of forest to be registered in the ETS. Once the registration process is complete, you are then required to establish and measure permanent sample plots (known as the Field Measurement Approach) within your forest and have submitted this data to MAF by the 31 December 2012. This involves engaging measurement contractors who are in high demand so booking in early is required to avoid disappointment.

If you need assistance in ETS registration and or implementing the Field Measurement Approach, please email colin.hercus@pfolsen.com.