Reforestation
FACT SHEET 13
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- Reforestation
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Forests remove carbon dioxide from the atmosphere and store it as they grow. This is known as forest carbon sequestration.
Under the Kyoto Protocol, Australia can only count forest carbon sequestration between 2008 and 2012 from 'reforestation'. Under the current Kyoto Protocol rules, 'reforestation' is defined as forests established using direct human-induced methods since 1990 on land that was clear of forest at 31 December 1990. 1
Australia's definition of a forest for Kyoto Protocol purposes is:
- a forest of trees with a potential height of at least two metres and crown cover of at least 20 per cent; and
- in patches greater than 0.2 hectare in area.
Any forest that meets this definition can be counted towards Australia's Kyoto target.
Covering reforestation
The Government proposes to include reforestation (as defined under the Kyoto Protocol) in the Carbon Pollution Reduction Scheme from 2010 on a voluntary basis.
Reforestation differs from other activities covered by the scheme because growing forests are likely to sequester more carbon than they emit. While other entities covered by the scheme would have to surrender permits for their emissions, forest landholders could receive permits for net forest carbon sequestration.
The opportunity to receive permits provides an incentive for forest landholders to voluntarily participate in the scheme.
Once forests are included in the scheme, forest landholders would:
- estimate and report changes in the amount of carbon sequestered in their forests and
- receive permits for net increases in forest carbon sequestration or
- surrender permits for net emissions from the forest.
Forest owners could remove forests at any time after opting in to the scheme but would need to buy permits to cover emissions released into the atmosphere as a result.
Forest owners could also opt out of the scheme but would be required to surrender permits for any existing and potential emissions from the forest.
Benefits of scheme participation
Scheme participation would not be beneficial for all forest landholders. Once detailed scheme rules have been finalised, forest landholders will need to make a careful assessment of the benefits of scheme participation before deciding to participate.
The benefits of scheme participation would be greatest for landholders of new forests (which have the greatest sequestration potential) who intend to maintain them, as those forests can provide ongoing carbon sequestration.
Scheme participation would not be beneficial for forest landholders intending to convert these to an alternative land use, and might not be cost-effective for landholders of very small forest areas. Design details such as reporting and acquittal periods and accounting rules will have a significant impact on the costs, benefits and risks associated with scheme participation.
These design details will be outlined in a White Paper towards the end of 2008. Once these details are known, forest owners will be able to make a definitive assessment of the benefits and risks of including their forests within the scheme.
We would strongly advise you to obtain professional advice before making any decisions about scheme participation.
The Government is unable to provide commercial advice or provide referrals to commercial service providers.
August 2008
1 The Kyoto Protocol rules define 'afforestation' as well as 'reforestation'. Both terms refer to the establishment of forest since 1990 on land that was previously clear of forest.
