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Forestry News

New ETS rules loom

10 June 2011

Several new regulations and rules covering forestry participants in the Emission Trading Scheme (ETS) will come into force in the next few months. These have been announced in the MAF Sustainable Forestry Bulletin, 8 June.

From 19 June, regulations covering new fees and charges for ETS transactions will come into effect. These will be:
  • Adding carbon accounting areas (CAAs) - $102.22 for a standard processing time of 45 mins
  • Reconfiguring CAAs - $562.22 for a standard processing time of 4.25 hours
  • Transmission of interest - $102.22 for a standard processing time of 45 mins (an emissions return filling fee applies also)
  • Processing times in excess of the above standard times at $132.89 per hour.
There is no charge for removing CAAs, however this does involve filing a mandatory emissions return for which a fee is required. Other new provisions include:
  • The chief executive may exempt, waive or refund, in whole or in part, any fees or charges.
  • The chief executive can recover actual and reasonable costs when a participant fails to submit an emissions return that is due, and the chief executive decides to make an assessment on the participant’s behalf.
On 1 September, regulations for a Field Measurement Approach (FMA) for determining carbon stocks in post-1989 forests come into force.

From that date, ETS participants and PFSI land owners with 100 hectares or more in total will be required to use the FMA to determine forest carbon stocks for:
  • The mandatory emissions return that covers the period 1 January 2008 to 31 December 2012, due in the first quarter of 2013.
  • All emissions returns for the period after 2012.
The ministry says the FMA will not be used for any emissions return made for the period 2008–2012 other than the mandatory return mentioned above. Any other returns made before the end of 2012 will use the default look-up tables in existing regulations.

MAF says affected ETS participants and PFSI landowners have been mailed a letter advising them of the introduction of the FMA. Some PFSI landowners have covenant versions that are not subject to the FMA; these PFSI covenant holders have also been mailed a letter about their covenant options. Anyone who believes they meet the criteria for the FMA but have not received a letter, should contact MAF.

Additions to the default look-up tables to close some minor gaps in their coverage also come into force on 1 September. These include:

• A look-up table for post-1989 indigenous forest harvest residues.
• A look-up table for the deforestation of indigenous forest planted after clearing pre-1990 exotic forest.
• For the post-1989 carbon stock tables (Schedule 6, Tables 1, 3 and 4), values of zero carbon stocks at age zero have been added allow carbon stock calculations in some unusual circumstances.

The amendment regulations can be viewed here. (A consolidated version of the Climate Change (Forestry Sector) Regulations 2008 is expected to be available on that site in several weeks.)

A comprehensive guide and standards for the FMA will be available to view on the MAF website from early August and all eligible landowners will be sent a printed copy of the guide.

Source: MAF Sustainable Forestry Bulletin #27

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