Forestry Shares.

[Glen]

Forestlands #12 shares. Trees and land!

Still only $1000 per share in 15yr old forests.

https://www.forestlands.co.nz

[NESW]

Glen, has the NZ Govt made any recent announcements re forestry owners retaining ownership of their carbon credits as opposed to the current system of the Govt assuming ownership?

My understanding is that an announcement was due to be made earlier this year, but they keep delaying it.

I would imagine if they continue on with the crown ownership issue, its going to affect investments such as this, and private ownership such as my 13 hectares....

[Glen]

To be honest, I don't know.

We started buying these shares from their second forest roughly 12 years ago(Forestlands #2), because they were a cheap start into investing for a young couple with bugger all money.

I think sometimes you just have to look at some forms of investment for what they truely are, and sod the government. Otherwise you'd never end up doing anything, if you had to rely on those useless pricks in parliment to make up their mind about anything.

Heres some more info.. http://www.maf.govt.nz/statistics/pr...gures-0607.pdf

[NESW]

NZherald online had a bit re forestry owners and a new discussion document by IRD re changes to the tax system for pre and post 1990 forest.

As its still a discussion document, its all very pie in the sky type stuff, but as a forestry land owner, we know our property will be deliberately devalued... and we are due to receive NZ units to "compensate" us for the value loss.

As of yesterday, the forestry owners association didn't have any thoughts on their website re the discussion document, so I think its going to take us all a while to work out what it means, but as long as people are aware there are big changes to the tax structure for forestry "owners" coming up. In some form or other....

http://www.taxpolicy.ird.govt.nz/

"Emissions Trading scheme tax scheme" is of interest and in my opinion will have a flow on effect to all investors as well as property owners.

[Glen]

Just bought 3 more shares today in the 15 yr forest offer.....still gotta be better than kiwisaver!

[revdev]

Source: http://www.rogerdickie.co.nz/

Carbon trading is likely to become a significant business option in New Zealand

As a result of the Government's September announcement that a carbon trading scheme would be introduced in New Zealand next year the opportunity now exists for New Zealand investors to enter the business of carbon trading. The Government proposes that the scheme will begin with the forestry industry, and over time will include all substantial industries and emitters. The intention of the emissions trading scheme is to reduce greenhouse gas emissions, promote environmentally friendly behaviour and create business opportunities.

The Government projects that its new package of forestry policies, including allocating carbon credits to many forest owners, will see 250,000ha of plantation forestry added to the country's forest cover by 2010.

The scheme will be an opportunity for forest owners to benefit from their plantations as they grow.

Douglas Fir has been chosen because it is a fast growing species that can sequester high amounts of Carbon dioxide per ha per annum. As well a Douglas Fir forest can store a very large amount of Carbon Dioxide in the form of carbon per ha and can be expected to last for well over 100 years. Should investors find that after 45 or 50 years the price of wood is worth more than carbon credits then the option would exist to buy back the previously sold credits and sell the wood instead.

Eventually, all New Zealand’s major carbon-emitting sectors will have to pay for the right to emit carbon under the government’s new emissions trading system, encouraging them to emit less greenhouse gases, so NZ can maintain carbon emissions at 1990 levels to meet its Kyoto Protocol requirements.

The trading scheme will work by “capping” the amount of greenhouse gases that can be emitted from sectors. Businesses producing more greenhouse gas than their cap will have to buy "carbon credits" from other businesses with lower emissions than their cap or buy offsets from forest growers.

Carbon credits, or New Zealand Units (NZUs) as they will be known, are simply a unit to facilitate a trade in green house gas emission. Forest owners next year will be allocated NZUs to trade based on the amount of carbon dioxide sequestered in their forest from 1st January 2008 onwards. The carbon trading market is a $30 billion industry worldwide.

Note: I have edited this quite heavily, as I wanted to post the info without the accompanying sales blurb that went with it.

G

[muppet]

And Mister Hart is very, very busy cutting down as much of his forest as he can before the end of the year to turn it into farmland.

I mean thousands of hectares.

Very strange.

[NESW]

And Mister Hart is very, very busy cutting down as much of his forest as he can before the end of the year to turn it into farmland.

I mean thousands of hectares.

Very strange.

He isn't the only one, my understanding its been going on all year already....

It appears once again that is great to have friends in high (or low) places. I cannot believe, considering that the proticol was signed so many years ago by the NZ govt, that it is still in "discussion" documents for now.

[revdev]

Forest may be bought to offset emissions

Source:http://www.stuff.co.nz/4259682a13.html

Forest may be bought to offset emissions

Companies wanting to offset their carbon emissions are considering buying a 2400 hectare forest in North Canterbury.

The forest in the Hawarden foothills fronting the Waipara River, is for sale by tender.

PGG Wrightson real estate agent Dennys Guild said it was one of the biggest privately owned forests to come on the market for several years. "I can't think of when a privately owned forest of this size was last sold in the South Island."

More than 80 per cent of the area is established with pinus radiata trees, which were planted between 1994 and 2004.

There has been a lot of interest from corporates and from overseas companies, but Guild would not say what the asking price was.

People were looking at the block partly for the forestry aspect, but companies were also looking at it to off-set their carbon emissions.

"The bulk of the plantings are post-1990, which makes the plantation largely Kyoto compliant for carbon credit trades. This, plus its proximity to sawmills and the export port of Lyttelton, give the forest a high interest factor for major corporate investors."

Some were also interested in converting the land to farming because some of it was suited to horticulture.

The 2432ha comprises four adjoining forests – Hunua, Bellfield, Mount Ellen and Laidmore – owned by McVicar Timber Group and J. D. Hawkins.

G

[revdev]

NZ carbon market eyes mid-2008 launch

Source: http://www.stuff.co.nz/4332696a13.html

NZ carbon market eyes mid-2008 launch

A New Zealand-based carbon trading market, which hopes to attract global players, is set to start operating from the middle of 2008, one of its directors said today.

The market, known as TZ1, is in the last stages of getting the regulatory settings finalised with the government, and is targeting a June 2008 launch said Joanna Silver, one of its new executives.

"That's purely because it's important the market is credible and is regulated," Silver told Reuters, adding: "You need that robust framework to get the international participation that's necessary for a healthy market."

The market has appointed three senior executives, including the former boss of New Zealand's largest electricity and gas distributor Vector Ltd , Mark Franklin, as chief executive.

A carbon market allows countries or companies to buy or sell rights to emit greenhouse gases.

The stock exchange operator, NZX Ltd is providing the initial funding for the market, and it will remain a cornerstone shareholder.

The company is examining options for the capital structure of TZ1, which include bringing in other shareholders and a public float.

The new market will use NZX's trading infrastructure, with clearing and settlement facilities in a testing phase, Silver said.

G

[NESW]

Hmmm interesting, thankyou for the link. I wonder then if the NZ govt has backed down from full crown ownership of all CC's except those who were registering under the carbon sink initiative.....

We are going to apply for an exemption for our trees after 1/1/08 which is also an alternative.

[Glen]

Forestry info.

http://www.nzwood.co.nz/

[NESW]

Thankyou for the link, I viewed it briefly, and awaiting further official updates from MAF re forestry and CC ownership, which I believe has now been backdated until 1/7/08 (from the original 1/1/08.

I await their decisions and outcomes before making a determination of the lifespan of our own forestry land.

My initial understanding is the light is certainly brighter for us than the proposals of 8 months ago, as a pre 1989 forestry owners....

Let's wait and see what the results are. We haven't taken a chain saw (yet) to ours......

[Glen]

#14 ltd now available

New forest #14 now available.
Check out the options, - http://www.forestlands.co.nz/offers.html

[revdev]

From: http://www.rogerdickie.co.nz/

On September 10 (2008 ), I attended an evening function at the Beehive in Minister for Energy and Climate Change David Parker’s office to celebrate the passing of the ETS Bill.

It is great to finally achieve our objective after fighting for more than five years to ensure that post 1990 forest owners received what is rightfully ours.

With all the politics that have surrounded the development of this Bill the Government has been left with few friends and it was ironical to stand in the Ministers office last night and realise that post 1989 foresters who had fought them so vigorously on their forest green house proposals are now one of the few friends Government has in regard to their climate change legislation.

Where to from now?
KFA will need to remain vigilant to ensure that future amendments or changes to the Bill do not water down the value of our rights that we have fought so hard to gain. Already the value of our credits has been diminished by the fact that Government has delayed bringing Transport into the equation, however, we can be thankful that the Greens and National have both had some effect in eliminating the inclusion of Hot Air Credits from Russia. These “dirty credits” would have had the effect of lowering the value of our “green” carbon credits.

Over the coming months we will begin discussing options that arise for us as post 1989 forest owners. In the meantime the trees keep growing accumulating wood and credits. We now have a whole new income option to consider when we look at our forests. Exciting times are ahead.

Regards

Roger Dickie

Indeed good news for forestry owners. Is ironical a word

G