As one would expect from a rurally based sector, foresters are a conservative lot. I don’t say that disrespectfully, because societies – for the sake of stability – need a balanced mixture of change-makers and change-resisters. But it did mean that, when in 1989 I started work on Climate Change and forestry, I met with considerable opposition: “what bullshit is this? The climate has ALWAYS changed. Nature is self-balancing.” And so on, you’ve heard it all before.
Continue reading “Woodman, spare that tree (foresters attitudes to the ETS)”
Tag: carbon credits
To boldly follow…?
The New Zealand Institute, the politically neutral think tank born of the “Knowledge Wave†conference, has been making waves of a different kind today with its new, and rather idiosyncratic take on how NZ should approach emissions reductions. The report, part of a series on climate change, is called “We’re Right Behind You†[PDF], and advocates a “fast follower†approach to emissions reductions – which apparently means reneging on our Kyoto commitments. The report recommends that:
…it seems appropriate and realistic for New Zealand to undertake to reduce its net emissions to their 1990 levels by 2020 rather than by 2012. We recommend that New Zealand should seek to avoid the obligation to purchase carbon credits associated with the decision to delay achieving its Kyoto committment by 2012.
This effectively means withdrawing from Kyoto, and as you might expect this “considered analysis†has been welcomed by the big emitters. I was interviewed by one of the authors of the report back in June, before HT was published, and in a swift email exchange this morning I promised to read the report thoroughly before rushing to any judgement (unlike some). So, my timely (but not rushed) view of this contribution to the policy debate?
NZ emissions trading scheme announced
Details of the government’s planned emissions trading scheme (ETS) have been announced. Scoop has all the government speeches and press releases. I’m reading them at the moment, and will comment more later, but here are some highlights:
- Foresters will receive the full value of carbon credits on new growth (from 1/1/2008) in post-1990 forests.
- Agriculture will not be brought into the scheme until 2013.
- NZ emissions units will be Kyoto-complaint and internationally tradeable (subject to some limits).
- Some units will be allocated free, others auctioned.
- Forestry will be first into the scheme in Jan 2008.
- Transport’s next, in 2009, basically through fuel prices
- Stationery energy (power generation) and heavy industry will enter in 2010, with no free allocation for electricity generators.
- Farmers will get free allocation of units based on 90% of 2005 emissions, but details to be worked out
The government hopes that 90% of power generation will be from renewable sources by 2025. In transport, they want to cut per capita emissions in half by 2040, and encourage the wide use of electric vehicles. Goals for agriculture are more nebulous: to be the world leader in emissions reduction research, and to lead the world in agricultural emissions reductions. In forestry, they would like a net increase of 250,000ha in forest area by 2020.
The government has also released an update on our expected Kyoto deficit – up to 45.5 millions tonnes from 41.2 mT, mainly from increased dairy production. In the absence of any emissions reduction policy, the government projects this could rise to 65mT, but believes the ETS will cut the 2008-12 deficit to 25mT.
My first thought? Politically astute. By getting foresters on board with what amounts to a taxpayer subsidy, they get enough trees planted to offset a large chunk of the Kyoto liability, and buy time to bring agricultural emitters in to the scheme. More later.
Global carbon trading triples to US$30bn
The World Bank reports that global trading in carbon credits tripled last year to US$30bn, with the European market accounting for $25bn. $5bn was spent on emissions reductions in developing countries. The booming market, and tightening supply of credits in the European market prompts the Independent (UK) to caution that demand might exceed supply by the end of the Kyoto commitment period in 2012, forcing prices up. Credits are currently trading around E20 (NZ$37).