Forest owners say a proposal to phase forestry out of the Emissions Trading Scheme (ETS) would have widespread implications not just for forest owners, but for fulfilling New Zealand’s climate action goals.

The Parliamentary Commissioner for the Environment released its report today, Alt-F Reset: Examining the drivers of forestry in New Zealand, looking at the economic and environmental impacts of forestry.

New Zealand Forest Owners Association (NZFOA) chief executive Dr Elizabeth Heeg says the new report raises important considerations for land use adaptation in a changing climate but that some of its recommendations would be counter intuitive to progressing climate action.

“Climate action is urgently needed and as it stands, there is a question mark over New Zealand meeting its 2050 emissions targets,” Elizabeth says. “Forestry remains at the centre of any future success so it makes no sense to limit the tools we do have available.

“Pulling back from the ETS without a tangible, alternative approach is risky at best.”

Forest owners are also concerned about the pressure that removal of forestry offsets from the ETS would place on operators, particularly farmers and woodlot owners.

“Small-scale farm foresters account for approximately 80 percent of ETS participants,” Elizabeth says. “These farmers utilise the ETS by providing an ecosystem service, that in turn funds their forestry management.

“Removing forestry from the ETS will significantly impact the revenue streams of smaller operators and disincentivise any further planting of trees on farms which will likely detract from creating a more resilient mosaic of land uses in addition to meeting climate goals.

“The revenue lost from forests entered into the ETS must be considered carefully to ensure a fair and sustainable approach for forestry nationwide.”

Elizabeth says the recommendations around the ETS appear to be driven by a misconception that forests are consuming valuable land at an exponential rate.

Production forests currently occupy six percent of New Zealand’s total land area. Sheep and beef farming occupies five times that.

“If New Zealand’s forest estate expanded by the projected 894,000 hectares detailed in the report, that would only constitute a three percent increase over 25 years,” Elizabeth says. “Even then, there’s enough land for our rural industries to co-exist.

“Forest owners are supportive of a mosaic approach to land use to ensure productivity of all rural sectors can continue while building environmental resilience in the face of a changing climate.”

Elizabeth says the industry is already having extensive land use conversations across the board and working with various rural sectors.

“We need a more unified approach to climate adaptation. We’re already having conversations with Federated Farmers, an organisation we share many members with.

“Trees, be that native or exotic species, help diversify farmland, improve environmental performance and provide timber for construction while reducing emissions.”

Navigating the unique challenges of certain landscapes, such as highly erodible land, has been another focus of these land use conversations with a view of ensuring future land use is fit for purpose and rural industries remain prosperous.

Elizabeth says the report’s recommendation to ban clear-fell harvesting in ‘high-risk’ areas will raise concern for some forestry operations, particularly those navigating harvest on complex terrain.

“Greater detail is needed on what is deemed ‘high-risk’ and the implications of banning harvest on such land before any recommendations are adopted. Particularly in regions like Gisborne where forestry generates a high degree of employment for the community and the rural economy.

“Forest owners are working hard to ensure resilience of their land and are exploring new options to manage land that is highly susceptible to erosion, including voluntarily retiring high-risk areas that are no longer suited to production forestry.

“Our sector will continue to collaborate with the Government, councils, communities and other rural industries to find more resilient solutions for land use in these complex areas.

“New Zealand’s forests are one of its greatest environmental assets and we welcome the opportunity this report provides to have a meaningful conversation about how we manage and sustain them in an uncertain future.”

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