Policy will burn a hole in our pockets

Allowing pines to be ‘permanent forest’ will end up costing us all,says Rob Morrison

The Government has recently made a decision with the intention of protecting our environment and reducing emissions.

The problem is, this seemingly small action will eventually send our land closer to ruin while likely costing taxpayers millions.

The decision was to back off from excluding exotic species such as pine from the permanent forest category of the Emissions Trading Scheme (ETS).

Why is this such a big mistake? It all starts with pine, Pinus radiata.

We use it for everything from housing construction to farm posts, furniture, decks, paper and cardboard.

Fast growing and hardy, it's a very useful resource.

Like all trees, pine is useful in combating climate change by taking CO2 out of the atmosphere as they grow.

What's not to like?

Well, pine is an introduced species and plantations present heightened risks for our environment.

They burn well, creating risks for neighbours and releasing CO2 back into the atmosphere.

The recent wildfires in the Landes forest, the largest planted forest in western Europe, led to thousands of hectares being torched and thousands of people evacuated.

These are monocultures, at a time when a biodiversity crisis and collapsing ecosystems are posing risks to human survival.

In New Zealand, they are also monoclones, with a lack of genetic diversity that makes them very vulnerable to climate change.

In many parts of the world, pests and diseases are wiping out huge areas of pine plantations.

Back to the Government's decision.

From January 1, 2023, forest owners can lock up pine plantations, as "permanent forests".

In return, while the trees are growing, owners will be able to earn credits which they can sell to polluting industries to offset their emissions.

When the trees stop growing those revenue streams finish.

This means pine plantations will increasingly be planted with no intent to harvest.

A new pine carbon farming industry will rapidly spread across the land, an industry we can think of as carbon mining.

Just like its traditional format, carbon mining is an extractive industry.

Once there is no resource left - in this case when the pine trees stop growing - the mine is of no value and becomes a liability.

Pine is a relatively short-lived species, especially in New Zealand due to intensive genetic modification.

Compared with native forests, pine plantations sequester carbon for a relatively brief period.

As the trees age and die, the risks of fire and disease increase, along with the risk the plantations will be abandoned.

In addition to the long-term costs of managing a plantation in its "permanent" state, any deforestation requires the owners to buy emission units.

There is a very real risk of a ticking time bomb with the price of emissions units increasing significantly over time.

This is the long-term pain.

What if plantation owners have no cash 30 years down the line when the mines are empty?

We've seen what happens when mines are abandoned when owners go bankrupt.

In 2013 tax and ratepayers picked up a $22million bill to remediate Tui mine near Te Aroha in Waikato.

When landowners can't meet their obligations, taxpayers and society will be left with the bill.

The environment will suffer, biodiversity will be negatively impacted, and resilience to climate change will be reduced. You, me, and our children will be picking up the bill.

It is not too late to chart a different path.

Initiatives such as native nurseries and recognising carbon sequestration in native forests are important, yet not enough to put native forests on a competitive footing with pine plantations to remove carbon.

We need new thinking.

The value of using native forests to sequester carbon (with their long-term climate resilience, biodiversity and other benefits) should be reflected by the offer of premium grade units in the ETS.

Premium units based on native afforestation will be sought after, driven by the demands of consumers and industry conscious of brand value, and alert to the risks associated with carbon mining.

Pure Advantage has engaged widely with experts who back our views, which are at odds with those of the government and vested interest groups fighting to keep pine in the permanent category of the ETS.

The experts will be presenting more science and evidence for more native forests for all their benefits at the O Tatou Ngahere conference this October 27 and 28 at Te Papa in Wellington.

We, New Zealanders, must convince our government to take the right actions here, for ourselves and our children.

Rob Morrison is the chairman of Pure Advantage, a registered charity led by business leaders committed to helping New Zealand capitalise on the opportunities available from a global shift to "green growth''