The Government has changed the emissions trading scheme rules, which will benefit owners of 1.5 million ha of exotic forest planted before 1990 - the cut-off date at which the Kyoto Protocol acknowledges the carbon-absorbing role of trees.
Owners of exotic forests planted before 1990 can apply for a one-off allocation of carbon credits for those trees, while owners of blocks less than 50ha can apply for an exemption to the Government's deforestation rules.
The Ministry of Agriculture and Forestry's sustainable programmes manager, Rob Miller, told forest owners in Dunedin last week the changes recognised the constraints placed on owners of those forests, who do not get any acknowledgement for the carbon sequestering role those trees play.
It has been estimated there are 15,000 blocks of trees in Otago and Southland that were planted before December 31 1989, covering 127,000ha.
If those landowners apply to Maf, they will get carbon credits, or New Zealand Units, which they can trade, as do owners of post-1990 forests.
One unit is equivalent to one tonne of carbon dioxide.
Maf estimates that an average radiata pine forest absorbs about 800 tonnes of carbon dioxide a ha over a 30-year life cycle, or approximately 2.5 tonnes a tree.
Mr Miller said owners can also have a one-off exemption from the Government's deforestation policy, meaning they will not incur liabilities for the emissions if they deforest a block of up to 50ha.
If the application for exemption is successful, it will be attached to the land's title and allow the land use to change at any time in the future without penalty.
The Government will allocate 75 million units to forestry up to 2012, recognition, he said, of the importance of the sector to New Zealand.
"It is only through the substantial plantings of new forestry since 1990 that New Zealand has been able to offset its significant 25% increase in gross emissions," according to Climate Change Minister Nick Smith.
He said forestry planting was on the increase, reversing the 30,000ha of deforestation from 2005 to 20008.
Speaking at the recent Australia-New Zealand Climate Change and Business Conference in Sydney, Dr Smith said some of the new planting covered large areas, such as 2400ha of farmland near Taupo, in which electricity company Mighty River Power will buy the carbon credits.
But the ETS had encouraged the planting of new, smaller woodlots, with more than half the 400 voluntary forestry ETS participants for forests being less than 50ha.
Dr Smith said the Government expected to allocate 11.7 million units worth $290 million to industry under its ETS phase-in period, between now and the end of 2012.
There would also be a one-off allocation of 700,000 units to fishing quota owners.
