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.

NZ Carbon Farming buys and leases land in order to plant trees. 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 their carbon offset obligations.

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.

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.

We pay approximately $10m every year in lease payments to land owners & forest owners, delivering a better return per hectare on marginal land or established forests.

You receive an annual lease payment (CPI adjusted upwards) – This delivers you certainty and diversity of income so that you are not solely at the mercy of farm commodity prices.

Costs to establish, insure and manage the forest are all covered by us and you inherit the forest at the end of the lease.

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

• Land eligible under the Emissions Trading Scheme
• Tree species
• Forest Management Regime
• Climate and soil fertility (affecting how well the forest will grow and sequester carbon)

Initially we can plant around 1200 trees per hectare. This number reduces as a forest matures and then reduces further as the forest evolves from high carbon yielding nursery stock (usually pine) to native New Zealand trees (that yield less carbon)

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

Typically, 16 -20 years though this can depend on the tree species and expected harvest age of the forest.