16 April, 2009

MAF grants $2M for new Kyoto forests; calls for applications

The Ministry of Agriculture and Forestry (MAF) has awarded $2 million to 17 recipients to establish new forests, and is calling for further applications.

The grants are part of the Afforestation Grant Scheme (AGS), a grant for landowners of non-forested land to establish Kyoto compliant forest, which is in its second public tender round.

The $2m in grants will be spread over the next two years and will be allocated to 17 projects in the Waikato, Gisborne, Manawatu, Wellington, Marlborough, Canterbury and Otago regions. It takes the total funding distributed under the scheme to $2.96m.

The projects will create 1429 hectares of new forest in 2009 and 2010 at an average price of $2029 per hectare for tree species that absorb carbon quickly and $625 per hectare for species that absorb carbon slowly.

MAF Deputy Director-General, Policy, Paul Stocks says the AGS grants are one way New Zealand can improve its net greenhouse gas emissions, making it easier for New Zealand to achieve emissions reduction targets under the Kyoto Protocol.

``Establishing more forests in New Zealand makes sense for a number of reasons. It is primarily useful because it increases greenhouse gas absorption from the atmosphere, but it also generates other environmental benefits such as reducing erosion, nutrient leaching and flood peak levels.

``MAF’s aim with the AGS is to provide the incentive to get new forests started.’’

Applicants have a choice in what species they want to establish, whether native or exotic and for what end purpose. Forest started under previous AGS grants have ranged from traditional forestry regimes through to alternative species for non timber benefits such as honey production.

Afforestation Grant recipients will own the new forests and can earn income from the timber. The government will retain the carbon credits generated from the forests and the responsibility for meeting deforestation liabilities under the Kyoto Protocol.

MAF hopes to further increase new plantings in 2009 and 2010 and a third public tender pool round is currently open for applications. The tender round closes on 30 April. The popularity of the grant scheme is increasing, particularly through word of mouth in the rural community, and MAF expects this coming AGS tender round to be the most competitive yet.

Under the AGS, half of the funding is available to the general public via the public tender pool and the other half is allocated to regional councils under a separate pool round.

The AGS is just one of MAF’s initiatives to mitigate climate change and promote sustainable land management. Others include the Permanent Forest Sink Initiative (PFSI), the East Coast Forestry Project and the Sustainable Land Management (Hill Country Erosion) Programme.

For further information on the AGS or to download an AGS Public Tender Form, see: http://www.maf.govt.nz/climatechange/forestry/initiatives/ags/.

ENDS

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