9 May 2013

The Ministry for Primary Industries (MPI) will seek public feedback this month on the type of unit to be issued to Permanent Forest Sink Initiative (PFSI) participants. This consultation will close Friday 31 May 2013.

Currently, participants receive internationally tradable Assigned Amount Units for the first Kyoto commitment period, 2008-2012. However, following decisions taken at recent international negotiations, PFSI forests do not qualify to earn these units beyond the first commitment period.

This triggered a termination clause in PFSI covenant agreements, meaning participants can exit the scheme, provided they notify MPI in writing by 30 June 2013. They will also be required to return the equivalent amount of carbon units issued under that covenant.

MPI understands participants require certainty so they can make an informed decision about whether or not to exit the scheme. MPI expects to make a decision on the type of unit to be allocated by the end of June 2013.

If a decision has not been reached by then MPI will extend the exit deadline to the end of December 2013 by mutual agreement with participants. MPI will also take the opportunity to initiate a wider review of the PFSI. This will address a range of improvement options going forward, and is intended to make the PFSI a more robust and effective mechanism.

This review will go until early September, and will also address recommendations made in the 2011 review of Afforestation Schemes. Four public meetings will be held in key PFSI regions in May 2013 to give land owners, consultants, and other key stakeholders the opportunity to provide their initial views on the consultation and the wider review of the PFSI.

Source: MPI Sustainable Forestry Bulleton #44, May 2013