1. Funding for native forest restoration: Mapping tool and calculator
Sam Liberman, Macalester College, Minnesota
Suzi Kerr, Motu
Sophie Hale, Motu
Ano te rite ki te ngahere, Ruatoria, November 2018

2. Funding Eligibility for Reforestation
Emissions Trading Scheme (ETS)
Land that was not forest in 1990
Average width greater than 30 metres and greater than 1 hectare
Erosion Control Funding Programme (ECFP)
Very steep erosion-prone land  Classified “6e, 7e, or 8e”
Total area must be greater than 5 hectares
No patch smaller than 1 hectare
No existing tree cover on land since 1989
ETS Eligible Land

3. Funding Eligibility for Reforestation
ECFP Eligible Land
ETS Eligible Land

4. Data Sources Title: Māori Land Spatial Dataset
Published by: Ministry of Justice and Ministry for Primary Industries on behalf of Māori Land Court
What is it? Dataset containing information detailing Māori-owned land in NZ
Title: Land Use and Cover Survey (LUCAS) Dataset
Published by: Ministry for the Environment
What is it? Dataset describing land use and land classifications in NZ
Various reference data from Land Information New Zealand

5. Making the Map
“Intersected” Emissions Trading Scheme eligible land layer with Māori-owned land layer
What does that mean?
Intersected that with 6e, 7e, 8e land layer to create ECFP eligible land layer

6. Using the Map

7. Block Title: Section 6 and Section 7 Block XII Mangaoporo Survey District
Management Name: Proprietors of Rotokautuku X1C
ECFP and ETS Eligible Land: ha
ETS but not ECFP Eligible: ha
Land ineligible for funding: ha

8. The Emissions Trading Scheme – register and claim credits
If your land is eligible you can choose to participate
A broker can help you with the process of registration
Once your land has ‘forest’ you can receive credits each year (or every 5 years) because your trees sequester carbon out of the atmosphere and reduce climate change
A ‘forest’ has 30% canopy cover and species that can reach 5 metres
A broker can help you claim the credits (from 2018)

9. Selling credits Option 1
Once you have credits you can sell them through a broker
Option 2
You could sign an agreement in advance with a buyer
You could receive cash upfront to help establish the forest
You could get a guaranteed price for a few years
If you do sell your credits and later decide to clear your forest you need to buy credits back.
Sophie has been talking with some potential buyers.

10. Large emitters are keen to engage
“When I think about the deals we have done, they have largely been because we care about the relationship. … So I think you do need to have people who within the organisations that want a relationship and that are prepared to invest some time and energy in getting transactions completed.”

11. Some are willing to do small deals
“To be honest I think today if someone came to me and said, “I've got 5000 credits, would you be interested?” We would say yes … And I think that is the right thing to do because in this space … you almost need to pilot and test things and help everyone grow their confidence in the system.”

12. But all would prefer blocks of land to be aggregated
“There is opportunities for someone being able to act as more of an aggregator, because … would it be easier for us to do three big deals rather than 100 small ones? Definitely. There is compliance costs in there and the administration that goes with signing up different contracts.”

13. Brokers play an important role
“[The broker] basically did everything … he was the counterparty’s agent. … I wouldn't want to cut a long-term deal with [landowners] if they didn't have sufficient advice, so having [the broker] there … made things quicker and it meant that … we both knew that he knew what he was talking about.”

14. There are multiple options for contracts
“We would be there for either providing capital for that or providing certainty of offtake.” “That is something that we could do, would be doing an investment up front and get paid back our investment through carbon credits.” “Because the other alternative [than buying credits] is that you have a capital intensive one whereby we would make a direct investment. So we would pay for the conversion to native forestry so … we would rather than just being a buyer we are actually an investor.”

15. So how much could you get for native forest?
Calculator – provide indicative value based on your assumptions
Example 1:
Bare pasture
ETS and ECFP eligible

16. 1 ha ETS and ECFP eligible

17. Example 2: 10-year old forest - ETS eligible
Doesn’t get ECFP grant but gets more ETS credit

18. The block that Sam showed
ha eligible for ECFP and ETS
72.34 ha eligible only for ETS