Author: Mr February

Carbon offsets from a permanent forest sink project – keep it real

Project Rameka sequester and ride
Project Rameka sequester and ride

In which I guest-post as myself and describe a carbon forest sink project I am involved in and our debate about whether we should provide carbon offsets to anyone as part of the project. I originally wrote this for the Greens Frogblog

Simon Johnson is a conservationist, tramper, accountant, former DOC worker and resource management consultant. Simon also blogs periodically at Hot-Topic.co.nz. In this guest post he writes about carbon offsetting from the point of view of a carbon forest.

I am one of the trustees of a small 47-hectare carbon forest sink and native re-vegetation project and mountain bike park; “Project Rameka” in the east Takaka hills in Golden Bay.

It’s really a response to climate change made by two of my old friends, Bronwen Wall and Jonathan Kennett, who bought the land in 2008. Bronwen and Jonathan decided to apply their experience organising native planting projects in Wellington to climate change after reading the 2007 fourth report of the International Panel on Climate Change (IPCC).

It’s been embraced enthusiastically by the Golden Bay community who do the planting, pest control and track work through Project Rameka Inc.

The land is owned by a trust and I am one of the trustees. I did the early accounting for the trust and prepared the application to get the land into the Permanent Forest Sinks Iniative (PFSI).

In return for a 50-year covenant restricting the land use to forest, we receive about 800 carbon credits (specifically assigned amount units) per year for Project Rameka. These units started life as part of New Zealand’s 1990 baseline amount of ‘Kyoto’ units under the Kyoto Protocol.

How many units we get is based on the amount of carbon withdrawn from the atmosphere by the trees. Thanks to the Golden Bay weather, plants grow really quickly. So we really are storing carbon. We have seen 3cm annual growth rings in the few pines we have removed.

Continue reading “Carbon offsets from a permanent forest sink project – keep it real”

New Zealand’s double dealing and special pleading over the second Kyoto period: part the second

USD or NZD? so confusing!
USD or NZD? so confusing!

Is Tim Groser a Kyoto pariah? Or a Kyoto visonary? A global emissions reduction emissary or is he tar-sanded with a Canadian brush? I once more try to make sense of New Zealand’s double dealing and special pleading over the Kyoto Protocol second commitment period and the Doha hooha. This time with the aid of Tim Groser, who has written an opinion editorial in the Herald.

Tim Groser, New Zealand’s most forthright Minister for Climate Changes, contributed a shocker of an Op Ed to the NZ Herald this week. When I first read it, I wrote down my responses to what seemed the most misleading claims. The headline shocker is that either Tim Groser is so out of touch with his portfolio that he has no idea what the current price of carbon in New Zealand, or he is so incompetent that he can’t tell US dollars from NZ dollars.

But there are shockers for all of us.

Continue reading “New Zealand’s double dealing and special pleading over the second Kyoto period: part the second”

New Zealand’s double dealing and special pleading over Kyoto 2: part the first

Net emissions to 2020
The 2020 target and Net emissions to 2020

Is Tim Groser a Kyoto pariah? Or a Kyoto visonary? A global emissions reduction emissary or is he tar-sanded with a Canadian brush? I try to make sense of New Zealand’s double dealing and special pleading over the Kyoto Protocol second commitment period and the Doha climate change talks hooha.

I am very confused about New Zealand’s climate change policy since the Doha international climate change talks (COP18) and New Zealand’s announcement that it would opt out of a second period of the Kyoto Protocol back on 9 November 2012.

The Kyoto opt-out has been described as a shambles and a disgrace and as a lose-lose decision that shuts New Zealand out of the international carbon markets. Tim Groser’s Herald Op Ed today just confuses me more.

So I have a question for all Hot Topic readers.

If Minister of Climate Change Tim Groser is serious about New Zealand’s 2020 greenhouse gas target, why would he forego formally lodging the 2020 target into the existing Kyoto Protocol framework (where the national institutions and arrangements are already up and running), in favour of pledging to meet the target on a voluntary basis in terms of a yet to be negotiated treaty?

Continue reading “New Zealand’s double dealing and special pleading over Kyoto 2: part the first”

NZ’s climate policy omnishambles – gerry brownlee’s anti-carbon tax

Gerry Brownlee, formerly a minister of energy and fossil fuel, and currently the Minister for Transport and for bulldozing democracy, heritage and social order in Christchurch, today announced that petrol duty will be increasing by 3 cents a litre annually for the next 3 years to fund new roads.

Specifically mentioned are the Rangiriri and Tamahere-Cambridge sections of the Waikato Expressway, the Mackays to Peka Peka section of the Wellington Northern Corridor and the four-laning of the Groynes to Sawyers Arms (Johns Road) section of the Western Corridor in Christchurch.

The reason given for this policy is that the funding is needed for the Roads of National Significance programme and some upper North Island transport projects. I guess that means more spaghetti motorway in Auckland.

This is crazy policy.

The first level of craziness of the petrol duty hike is that it will affect the benefit-cost analysis (BCA) of each Roads of National Significance (RONS) project. Projects like Transmission Gully Expressway, have already been justified to hearings before the Environment Protection Authority on very marginal benefit/cost ratios. Julie-Anne Genter of the Greens said the benefit/cost ratio of Transmission Gully was 0.6. The RONS don’t even break even in BCA terms.

Now with the added petrol duty, the marginal benefit/cost ratio would be even worse. However, I bet that won’t make Gerry Brownlee or Steven Joyce any less obsessed with them.

The second level of craziness with the petrol duty increase is the Government’s complete failure to understand carbon pricing (which is what a petrol duty is) and to anchor their transport, energy and infrastructure policy with effective carbon pricing.

I have no problem with the price of petrol or diesel increasing. Road transport has many externalities that are not priced. It is “elephant in the room” obvious that the most important unpriced externality of liquid fossil fuels is global warming. And not a lack of four-lane expressways.

“But we have an emissions trading scheme!” I hear some one say. “Surely, road transport fuels are included in the NZETS?”

Yes we sort of have an emissions trading scheme which includes liquid fossil fuels which sort of prices carbon. But NZ carbon prices have crashed 72% in 2012.

According to estimates by the Energy and Data part of Steven Joyce’s mega-ministry MoBIE, in the three months ended on 30 September 2012, the NZ emissions trading scheme probably accounted for 0.93 cents out of the regular petrol price of $2.09 per litre.

So we may describe New Zealand’s petrol pricing policy as having two mutually conflicting parts. The price includes a component for revenue gathering for unneeded four-lane RONS expressways (3 cents/litre). The price also includes a component for the NZETS carbon price (0.93 cents/litre).

And the four-lane expressways part exceeds the carbon-pricing ETS part by a factor of 3.

This is the complete opposite of effective carbon pricing. Brownlees’s petrol duty, to coin an expression, is an anti-carbon tax. What a shambles!

Tim Groser shuts the stable door after the Mickey Mouse carbon credits have bolted

Mickey explains over supply in the offsets market

This week the Ministry for the Environment is consulting and seeking submissions on a proposal to ban some of the more ‘Mickey Mouse’ international carbon credits from the New Zealand Emissions Trading Scheme. Apparently this is because Climate Change Minister Tim Groser “wants to maintain the integrity of the ETS” (New Zealand Emissions Trading Scheme).

Thats really too much brazen and intentional cognitive dissonance, especially since Groser said that only five days after he indefinitely excluded agriculture from the ETS and only four days after he announced New Zealand would not sign up for a second commitment period under the Kyoto Protocol of binding greenhouse gas reductions.

I apologise if you had an extreme reaction to the close conjunction of the terms “Tim Groser”, “emissions trading scheme” and “integrity”. My apologies if you just coughed your coffee/beer/tea over your laptop or punched out your PC monitor.

Assuming you have cleaned up, I should provide the context for Tim Groser’s unintentional irony in claiming to be concerned about the integrity of an emissions trading scheme where emission units trade for less than $3 per tonne of carbon dioxide equivalent gas.

Here is the quote from Groser about the consultation.

Continue reading “Tim Groser shuts the stable door after the Mickey Mouse carbon credits have bolted”