Trees under management for carbon
Tonnes of carbon removed from the atmosphere to date

Opportunities for Forest Owners

EARN MORE INCOME FROM YOUR FOREST AS THE TREES GROW.

OUR TAILORED LEASE SOLUTIONS DELIVER INCOME EVERY YEAR FOR BOTH HARVESTABLE AND PERMANENT FORESTS.

Why carbon farming might be right for you

Progressive

You are looking for new ways to earn money from your existing forest.

Planner/Investor

You are planning for the next generation and/or retirement savings.

Environmentalist

You’re connected with the forest and know there’s a better long-term proposition.

Iwi Groups

You know your forest can offer more value and need to plan for long-term land use and economic prosperity.

Boost Cashflow

You want to reduce debt and avoid market volatility. You need a more balanced and certain income.

Ease Up

You are approaching retirement and looking to reduce workload and debt.

42,868 ha

Of forest land leased

$9,717,963

Lease payments made in 2019

Over 6,000

Forest owners with lease agreements

Process: How it works

  • We lease your forest from you
  • We own the carbon in the forest as it grows
  • We pay an annual rental to you
  • At the end of the lease you decide whether to harvest or continue with a permanent forest for carbon
  • If you decide to harvest your forest, we can take care of any liabilities under the Emissions Trading Scheme, so long as you replant the forest within the period specified

You own the trees and can harvest after the end of the lease term or decide to keep it as a permanent forest. A permanent forest can continue to generate income from carbon.

The ideal forest for lease

  • Ideally planted after 2000
  • Established forests that are intended to be harvested
  • Your forest is 50ha or greater
  • Businesses that emit greenhouse gases buy carbon credits to ‘offset’ their emissions
  • Landowners can plant forests that absorb greenhouse gas (CO2) as trees grow
  • The Government gives carbon credits for the CO2 absorbed by their trees
  • Foresters can sell these carbon credits on the New Zealand ETS
  • The CO2 removed and stored by trees counts towards New Zealand’s international emission reduction targets

Frequently Asked Questions

What is climate change?

Climate change is a phrase we use to describe changing climate patterns that:

  • can be attributed to human activity that alters the earth’s atmosphere;
  • are beyond natural climate variations observed over comparable time periods.

The effects of global warming and climate change are already measurable. New Zealand’s climate is changing, largely because of the build-up in the earth’s atmosphere of greenhouse gases particularly carbon dioxide, methane and nitrous oxide. For more information visit our Climate Change webpage.

What is carbon farming?

New Zealand Carbon Farming buys and leases established forests that are intended for harvesting. The trees capture and store carbon dioxide with the goal of reducing climate change. This process is called sequestration and generates carbon credits.

Carbon Credits have a tangible value through the Emissions Trading Scheme. One Carbon Credit represents one tonne of carbon dioxide (or equivalent for other greenhouse gases) – We then sell the carbon credits to large companies who need them to meet legal obligations.

Who buys carbon credits?

The right to pollute the atmosphere is becoming increasingly regulated internationally. The carbon market has been developed to provide an equitable way for industry to offset their greenhouse gas emissions.

Emission units (carbon credits) are traded for the right to emit carbon dioxide into the atmosphere.

What is the Emissions Trading Scheme (ETS)?

The ETS is a carbon market that all New Zealanders will be affected by. The ETS will account for all emissions and reductions within New Zealand. Those who absorb greenhouse gases will be paid by those who emit greenhouse gases.

Each sector of the NZ economy is being brought into the ETS in a staged manner. Forestry has been included first – with agriculture and waste to be included last.

How much can I earn?

We pay approximately $10m per annum in lease payments to landowners delivering a better return per ha on forests and marginal land.

You receive an annual lease payment (CPI adjusted upwards) – This delivers you certainty and diversity of income.

Lease payments vary depending on factors specific to each site such as:

  • Land eligible under the Emissions Trading Scheme
  • Tree species and forest age
  • Forest Management Regime
  • Climate and soil fertility (affecting how well the forest will grow and sequester carbon)
What changes will you make to my forest?

None. You can continue to manage your forest as intended however you can not harvest the forest during the lease period. Our lease term would allow for your harvest planning horizon.

Will I have to do any work on the forest?

You will continue to be responsible for all local authority rates, timber insurances and the establishment and maintenance of boundary fencing.

You will continue to be responsible for the maintenance and management of the forest with regard to the agreed forestry management regime.

How long will the lease be?

Typically, 10-15 years though this can depend on the age of the forest and its eligibility under the Emissions Trading Scheme.

How to get started

Simply fill in your name and phone number below or click ‘Contact’ to start our conversation