The Australian Government has made changes to the Emissions Reduction Fund (ERF) resulting in a number of carbon funding opportunities for the plantation sector in Tasmania.
Namely, the Government has introduced a new 2022 Plantation Forestry Method which, according to Assistant Minister for Forestry and Fisheries Jonno Duniam, will make it easier for plantations to generate carbon credits under the ERF and access the $2 billion Climate Solutions Fund.
“Improved access to carbon credits for the plantation forestry will enable further growth of Australia’s plantation area and future wood supply, and provide more carbon credits for businesses to offset their emissions and generate revenue,” Mr Duniam said.
“Sustainable forestry is an important source of offsets for the decades ahead, contributing to Australia meeting and beating its emissions reduction targets while growing a strong economy.”
The new method builds on the 2017 method which will be evoked on 28 February 2022.
Developed by the Clean Energy Regulator, the new 2022 Plantation forestry method is available for project registrations since 31 January 2022.
Greater access to carbon credits for Australia’s plantation forests builds the business case for establishing new plantations, according to New Forico Chief Executive Officer Ange Albertini.
“Carbon sequestered by forests and, stored in wood and wood products, plays an important role in the Australian economy. Last year our natural capital report reported Forico was a net absorber of 1.4 million tonnes of CO2 equivalent in 2020-2021,” Mr Albertini said.
“The new methodology will enable the industry to continue planting much needed trees in areas which may have been converted to other uses. Carbon funding for forestry projects recognises the positive contribution of sustainably managed production forestry.”
To learn more about the new 2022 method and how projects registered under the 2017 method are affected, visit http://www.cleanenergyregulator.gov.au/ERF/Choosing-a-project-type/Opportunities-for-the-land-sector/Vegetation-methods/plantation-forestry-method
