PRE-1990 FOREST PLAN

Pre 1990 Forest Allocation Plan-Effective from the 1st August 2010

Under the new rules if you have deforested a Pre 1990 forest and change the land use the Crown will tax you a potentially substantial volume of credits per hectare.

If the landowner in September 2007 owned less than 50 Ha you can apply for an exemption to deforest up to that amount of land at some time in the future.

As compensation to the potential costs of deforestation and or reduction in land value due to this regulatory encumbrance the Forest Allocation Plan has 21,000,000 carbon units to allocate to NZ Pre 1990 forest land owners who owned the land on the 20th July 2010.

  • 60 units/ha if they have owned the land since before 31st October 2002.
  • 39 units/ha if they have purchased the land on or after 1st November 2002.

Approximately 38% of these credits will be allocated on confirmation of an approved application before 30th November 2011 and the balance in the next Commitment Period, as soon as early 2013 if still applicable.

Example  40 Ha of Pre 1990 forest land that has been in the same ownership since October 2002.

40Ha * 60 Units/Ha 2,400 NZU
23 units/ha allocated now 920 NZU $18,400
37 units/ha allocated in 2013 1,480 NZU $29,600
Total Compensation (@$20/Unit) $48,000

If only 39 units are allocated then the numbers reduce accordingly.

40 hectares at 39 units per hectare 1,560 NZU
15 units/ha allocated now 600 NZU $12,000
24 units/ha allocated in 2013 960 NZU $19,200
Total compensation (@ $20 per unit) $31,200

We have a Pre 1990 calculator available to help you determine what your profile (allocation) might be with the ability to determine what that might be worth by inputting various carbon prices/unit.

Note Important Dates
   
Entity to get the Pre 1990 Allocation of Compensation Credits Land Owner on 20th July 2010
Land ownership to gain 60 NZU/ha 31st Oct 2002 or before
Land ownership to gain 39 NZU/ha 1st Nov 2002 to 19th Jul 2010
Exemption to deforest land Closes 30th Sept 2011
Allocation (of credits) for Pre 1990 Forest Closes 30th November 2011
Purchased the land since 20th July 2010 No allocation as the previous owner has the rights to the credits.

Woodnet can help you with

  • Confirming Applicant Eligibility
  • Opening the required NZEUR Account
  • Provision of Required Cert of Title and Legal Descriptions
  • Mapping and Shape file creation
  • Determining Claim Amount
  • Support with NZEUR account management
  • Subequent sale of carbon credits