Woodbank understands the key drivers in Carbon forest investments and how best to leverage these for investment returns.
Opportunities in carbon forestry have arisen from initatives by the NZ Government such as the Emissions Trading Scheme (ETS), the subsequent aforestation projects that have arisen from it, such as the Afforestation Grants Scheme (AGS) and the Permanent Forest Sink Initiative (PFSI)
Woodbank has managed client involvement in these initiatives that has resulted in planting significant forest areas in a range of species, not just Radiata pine. We have assisted our clients to gain important early revenues from their forest investments by providing a range of services, including:
- Forest registration
- Forest mapping
- Financial modelling / forecasting
- Land purchase analysis / forest planning
- Species selection
- Establishment operations
- Forest management
- Submitting Mandatory and Voluntary Emission Returns
- Establishment and measurement of permanent growth plots
- Negotiations with MPI over land use conversion issues
- Exiting the ETS
- Selling NZU’s
Whatever your need in relation to carbon, contact Woodbank to find out how we can help you.
Existing forest owners
Carbon sequestration can provide a regular income stream for the forest owner, without the need to wait until harvest. Income from carbon sales is effectively an advance on harvest proceeds, if managed appropriately.
If your forest was planted prior to 1990, you may be eligible for a one off free allocation of up to 60 NZUs per hectare. These units are compensation for not being able to change land use without incurring deforestation penalties.
Woodbank can help you profit from the ETS by working through the process from establishment to registration and sale.
Our services include:
- Registering your forest for the ETS/pre 1990 free allocation
- Preparing the mapping files required for registration
- Submission of an Emissions Return on your behalf
- Aggregation of NZUs into economic packages to maximise your selling price
- Planting your new carbon forest
- Can I make money from my existing forest under the ETS scheme?
- Can I make money from establishing a new forest for carbon?
- I have a block of 40 hectares of trees that I want to convert to farm land after harvest. What should I do with regard to the ETS?
- How much can I afford to pay for land to establish a carbon farm?
- Is the registration process complicated?
- I have a Forestry Right over a block of trees and want to harvest the trees next year, can I also claim the credits?
- If I sell my land can the new owner claim credits on the forest on my land?
Can I make money from my existing forest under the ETS scheme?
Yes, depending on the year of establishment of your forest and what the land was being used for previously, there are a number of ways you can profit from the ETS Scheme.
Can I make money from establishing a new forest for carbon?
This all depends on the future price of carbon and the upfront costs of establishing your forest. Contact us for advice in this area.
we can’t tell you until we have further information. You will either need to pay a land conversion tax, plant an equivalent area of forest elsewhere, repay and units claimed under the ETS or do nothing depending on whether the land was forest in 1990 and whether credits have been claimed and sold.
How much can I afford to pay for land to establish a carbon farm?
This totally depends on your view of the carbon price at a point in time in the future. Many investors are purchasing land now and planting in fast growing species with a view to selling the units from the forest into the carbon market.
Is the registration process complicated?
Given the program is effectively a financial instrument registered against your land, there is a small amount of complexity in the process. Contact us to assist.
I have a Forestry Right over a block of trees and want to harvest the trees next year, can I also claim the credits?
The credits belong to the land owner not the holder of the Forestry Right. Unless your Forestry Right agreement makes special mention of the entitlement to the credits, these opportunities (and liabilities) sit with the land owner.
If I sell my land can the new owner claim credits on the forest on my land?
This depends entirely on what you have done with your credits. Any transactions in the ETS are registered against the land title in question and will appear on a physical land title.
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