19 Sep 2011

Forest owners welcome changes to ETS

6:31 am on 19 September 2011

The Forest Owners Association says more trees will be planted if changes it has recommended to the Emissions Trading Scheme are made.

The association says this will help New Zealand to meet its targets for reducing greenhouse gas emissions.

The Government last week released the ETS Review Panel's report, which suggests a more gradual method of bringing agriculture into the scheme from 2015.

The forest owners say they do not support slowing down the scheme for some sectors.

But chief executive David Rhodes says the association is comfortable with the forestry provisions, apart from a couple of areas where it wants more flexibility.

He says its recommendations to the panel on forestry provisions related to force majeure and averaging.

"The force majeure is essentially bringing in something that means those that lose their forests for whatever reason - it could be fire or other acts of nature beyond what you could reasonably expect people to foresee - there will be a system there that allows for that."

Mr Rhodes says a pool of credit would be built up to cover people for such unforeseen acts of nature.

"Averaging (is) essentially where - instead of taking all of the credits and having all of the liability at harvest - you set up a system whereby people only get up to the average level, but as long as they replant they don't face a liability at harvest," he said

Meanwhile, ACT agricultural spokesman Don Nicholson says the party remains totally opposed to the Emissions Trading scheme and will push for its repeal.