Forestry and the Emissions Trading Scheme - May 2013

NZUs have hovered around the $2 mark in April, currently around $1.90. ERUs dropped from $0.15 to $0.13 on the back of weakening European carbon prices. Demand for NZUs is weak with emitters concentrating on the purchase of cheap UN offsets for 2013 and 2014.

Pre-1990 Allocation

The Ministry for Primary Industries has announced that the Crown has finished issuing the 2nd tranche of the pre-1990 forestry allocation. Over 4,000 allocations were made totalling almost 48 million NZUs.

Are you deforesting pre-1990 forest land?

We have received a notice from the Ministry for Primary Industries informing pre-1990 forest owners who may be considering deforestation, of the obligations under the ETS. Note that deforestation is defined as a change in land use, and does not apply to harvesting provided replanting or regeneration meets certain thresholds. It is a statutory requirement to notify the Ministry for Primary Industries within 20 working days of commencing deforestation. This means that if you intend to deforest when you start harvesting, you need to notify MPI within 20 working days of commencing the harvest. If you are currently harvesting and intending to deforest, or considering deforesting in the near future and require PF Olsen to assist you with this process, please contact Erin Leahy on the details below.

New ETS Contact

Colin Hercus has left PF Olsen to pursue a non-forestry related career. Should you need any advice or assistance with the ETS, feel free to contact Erin Leahy at erin.leahy@pfolsen.com