The Flexible Land Use Alliance represents some of New Zealand’s largest exporters, and other key players in New Zealand’s primary industries. It has been formed to ensure continued land use flexibility in the event of the introduction of a New Zealand Emissions Trading Scheme (ETS), recognising its importance to growing New Zealand’s export receipts and, therefore, to the economy as a whole.
The Alliance seeks the exclusion of forests planted before 1 January 1990 from the Emissions Trading Scheme, believing the inclusion of these forests to be unjustified on economic and environmental grounds. Where Māori have an interest in such forestry, the inclusion of pre-1990 forestry in the scheme is also seen to be a clear breach of Article Two of the Treaty of Waitangi. This would risk climate change policy becoming embroiled in a protracted Waitangi Tribunal process unless the policy was developed with the consent of Māori and in a way that was consistent with the principles of the Treaty of Waitangi. Resolution of these issues is a necessary precursor to the Climate Change (Emissions Trading and Renewable Preference) Bill being passed, given that any outcome that saw Māori and non-Māori being treated differently would be politically unsustainable.
In the event that it is finally determined that pre-1990 forestry shall remain in the ETS, the Alliance seeks sufficient modification of the scheme to maintain future land-use flexibility and incorporate a transition arrangement that reflects the long-term investment horizons of primary producers including, for example, producers and processors of wood products and milk. Such modifications principally include the introduction of a Forestry Offset Scheme and an extension of the deforestation permit provisions currently proposed.
Under such arrangements, the compensation package offered to owners of forests planted before 1 January 1990 would be extended to reflect their real land value losses. In addition, forest owners harvesting their land would be treated the same, whether they replanted that same land or planted an equivalent area of new forestry elsewhere in New Zealand. They would not be penalised simply because they chose to replant on land that was more appropriate for forestry. This principle is essential if New Zealand is to maintain and increase the country’s total forest cover, a key part of our contribution to the fight against climate change.
This booklet outlines the background to the land use flexibility issue and focuses primarily on the rationale for including offsetting arrangements for forestry. It should be noted, however, that offsetting alone is not a sufficient measure by itself to address the inflexibilities in the current ETS proposals for forestry. The Alliance looks forward to working with officials, ministers and parliamentarians to outline and develop a Forestry Offset Scheme such that it can be used in conjunction with more realistic deforestation allowances to deliver an equitable and sustainable approach to pre-1990 forestry, in time for implementation within the wider Emissions Trading Scheme.
New Zealand was promised a surplus of approximately NZ$500 million from its participation in the Kyoto Protocol. Forecasts suggest that has turned out to be a deficit of approximately NZ$1 billion or more. The primary industries, including forestry, warned policymakers about such risks associated with an inflexible response to the threat of climate change. By forming the Flexible Land Use Alliance, these same industries are now again offering to work with government to get the details of climate change policy right.
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