29 Apr 2010

Forestry companies appeal for ETS certainty

3:42 pm on 29 April 2010

Forestry companies say they fear any further changes to the Emissions Trading Scheme will ruin the fledgling market in carbon credits.

Industry pressure to get rid of the scheme has been increasing since the Australian government announced it was dropping its plans until at least 2013.

It is due to be implemented from July, with emissions charges on energy, transport and manufacturing.

The forestry sector has been bound into the scheme for more than two years and is getting carbon credits for trees planted after 1989.

The Government says $1.1 billion of carbon credits will be transferred to foresters over the next financial year.

In the last year the number of applications from forestry landowners to join the scheme has risen ten-fold to more than 300.

The chief executive of forestry servicing company PF Olsen, Peter Clark, says it's important that the market, which is finally building, not be undercut.

Mr Clark says many of the country's largest forestry companies still have not decided if they will join the scheme. He says they will put it off as long as the uncertainty over its future continues.

Forest Owners Association president Peter Berg says deferring the scheme would be complicated and costly especially when forestry operators are queuing to sign up.

He says some of the $1 billion worth of credits due to be paid out over the next year will be used to finance new planting.