Greenair Ltd Signs NZ Forestry Deals
2 March 2008
Global Carbon Credit Leader Greenair Ltd Signs Nz Forestry Deals
GreenAir Ltd, an emerging leader in the international carbon credit market, has started to sign forestry carbon credit projects in NZ.
The company will assist forest owners to commercialise carbon credit projects in preparation for the anticipated launch of forestry emissions trading by the NZ government later this year.
GreenAir is one of the world's fastest growing carbon credit funds, with a pipeline of more than 50 developments around the world.
GreenAir's NZ forestry projects will provide valuable premium UN quality carbon credits to the NZ and international market.
GreenAir Ltd, an emerging leader in the international carbon credit market, today announced it was signing forestry carbon credit projects in New Zealand in anticipation of new climate change legislation expected later this year.
Forestry has become the first sector to benefit from the emissions trading market that will be created by the legislation, with forest owners able to generate additional revenue by maintaining existing forestry or by developing new forestry projects.
GreenAir commercialises Kyoto compliant carbon credit projects internationally, and has other forestry projects in South America, South East Asia and the Pacific. It is also seeking to raise up to $100 million in the Australian capital markets through a share offering on the Australian Securities Exchange within the coming 12 months.
Chairman and Executive Director Mr Himanshu Dua said today that the proposed climate change legislation in New Zealand means forest owners would now be able to access the benefits of the international carbon credit market created under The Kyoto Protocol.
"Forest owners will be able to generate additional revenue through sustainable forestry management and maximise their returns by selling carbon credits internationally," said Mr Dua.
"GreenAir will work with forest owners to ensure their projects are established in line with the new legislation and will also provide the necessary funding and technical expertise to make their projects a reality."
Mr Dua said the company's New Zealand forestry projects would also help address land erosion through new planting, as well as providing farmers with a viable alternative to high emission farming practices.
GreenAir expects to commercialise at least 3 million tonnes of forestry carbon credits in New Zealand. The company's initial pipeline of projects represents in excess of 9 million tonnes p.a. of carbon credits* at maturity, which compares with the current pool of 80 million tonnes of carbon credits globally that have been approved by the United Nations.
Mr Dua said analysts expect there to be a global shortage of carbon credits in coming years because the creation of credits could not keep up with demand.
"A global shortage of 124 million tonnes p.a by 2012 is currently forecast, and as the Bali Climate Change Conference committed to even more stringent targets for post-2012, supply will continue to be an issue going forwards," he said.
As well as forestry, GreenAir's projects include biomass power plants, landfills, wind and coal mines. GreenAir is involved in every aspect of the carbon credit value chain, providing initial funding and expertise to commercialise projects, services to assist companies to become carbon neutral, and brokering services worldwide. The company has a local agent Laurie Forestry in Christchurch, with head office based in Sydney.
*One carbon credit equates to one tonne of carbon dioxide equivalent being removed from the atmosphere. It is estimated that it would take five trees growing for 100 years to achieve the same outcome.