Climate Change Emissions Trading

1
Climate Change (Emissions Trading Renewable
Preferences) Bill 2007

• Willie Te Aho
• Secretariat
• Climate Change Iwi Leaders Group
• Maori Reference Group Executive

2
Leadership or Shameless Self Promotion!

• If you have 3 or more Iwi with contiguous
  coastlinesAND
• You support commercial benefits being achieved
  despite differing views on mana whenua/customary
  interests AND
• You want a quick commercial resolution in 2
  weeks.
• THEN CALL ME
• Seriously 021768462 willie_at_whakarewarewa.com

3
1. Individual Take Home Points

• Emissions Trading will impact on everyone
  particularly fisheries.
• If you preach sustainability and care for our
  environment then practice what you preach.
• Aim for carbon neutrality before it is forced
  on you. Make it work for you.
• Individually assess your carbon footprint reduce
  what you can, then offset.

4
2. Iwi Take Home Points

• Iwi must implement a single balance sheet
  approach for all assets within the rohe
  (irrespective of who owns the asset).
• Free allocations of carbon credits/NZUs should be
  held to offset emissions trading liabilities.
• Create a separate intra Iwi market for NZUs.

5
3. Conference Take Home Points

• Learn from the forestry experience Treat Iwi
  fisheries as a one collective.
• Support Te Ohu Kaimoana, Climate Change Iwi
  Leadership Group and other pro Iwi fisheries
  submissions before the Finance Expenditure
  Subcommittee.
• You are welcome to join and Climate Change Iwi
  Leadership submission.
• Advocate collectively for NZUs to offset
  financial impacts on Iwi fisheries industry as a
  whole.

6
Government Ministers
Federation of Maori Authorities (FOMA)
CC Leadership Forum
Governance/Strategic
MCC Specialist Group (Primary Technical Advisers)
Officials
Operational/Technical
Relationships with the Iwi Leadership Group
7
Simple Crown Proposition Reduce Green House Gas
Emissions to 1990 levels (Kyoto Protocol)

• Emissions
• Cows burping
• Burning fuels
• Consuming energy
• 1st step Reduction
• Agricultural solutions
• Reduce private vehicle use increase biofuels
  move to hybrids
• Reduce energy usage

• 2nd Step Offsets Emissions
• Carbon sequestration (soak in carbon)
• Most commonly recognised method is continuance
  and establishment of forests.

8
Whats a carbon credit?

• 1 carbon credit 1 tonne of CO2
• Typical carbon uptakes
• Slow growing species ( eg scrubland) 2-7 tonnes
  CO2/ha/yr
• Fast Growing species eg Radiata / Eucalypts
  25-35 t/ha/yr
• 1m3 of stemwood is equivalent to approximately
  1.5 tonnes of CO2 for all carbon pools

9
Maori Asset Base

• 50 of Maori asset base in primary industries
  including agriculture, forestry, fishing versus
  11 for whole economy
• Maori control 37 of domestic fishing quota
• Maori control around 10 of land in forestry,
  with much of this is under leases/rights

10
General Overview of Bill Maori Forest Lands

• The Bill sets the framework Cabinet will set
  the design.
• Under the framework, forestry is brought into the
  ETS from 1 January 2008
• In short, penalties on pre 1990 forests and
  opportunities for new post 1989 forests
• Submissions to the Finance Expenditure Select
  Committee closed on 29 February 2008.
• This will become law by July 2008 at the latest.

11
Offsetting Economic Impacts for Pre 1990 Exotic
Forest Lands

• 55m NZ Units is proposed to be allocated across
  1.2m hectares of pre 1990 exotic forests.
• After exemptions there should be 47m NZ Units
  allocated.
• Crown Forest License lands subject to Treaty
  claims - make up 33 of the 1.2m
• Estimated price of NZUs is 45 (Westpac Trust
  Bank Economist 9/11/08)
• Value of NZUs to CFL claimants 700m (approx)

12
Waitangi/Pukawa 4 20 February 2008

• Strongly oppose the current Bill
• Support the work of the Climate Change Iwi
  Leadership Group
• Moved Waikato Tainui
• Seconded Te Runanga o Ngati Whatua
• CARRIED UNANIMOUSLY
• (Ngati Kahungunu Ngai Tahu Ngati Tuwharetoa
  Ngapuhi Ngai Tamanuhiri Whanganui Hauraki
  Ngati Maniapoto Ngati Awa Te Atiawa Te Arawa
  Lakes Trust)

13
What is opposed?

• Most Maori forestry is pre 1990 (including CFLs
  600,000 hectares) with most leased/licensed.
• No allocation of NZUs to CFLs claimed by Maori
  (400,000 hectares) to be held on trust for
  claimants.
• Major forestry impacts
• Capping of the Maori economy in forestry (at
  least 200,000 hectares could be used for a better
  higher value use eg diarying).
• Deforestration penalty of 13,000 to 40,000 plus
  per hectare.
• Loss of access to 700m.

14
Proposed Solution for Pre 1990 Exotic Forest Land
Owners 576m

• Proposal
• 60 NZUs to pre October 2002 owners
• 18 NZUs to CFL claimants
• Use by Maori Entity pending settlement of claims.

• Value to Maori (_at_30)
• 360m (200,000 hectares)
• 216m (400,000 hectares)

15
Iwi Balance Sheet

• Pre 1990 exotic forests
• Te Awahohonu (10,000)
• Value 9m
• CFLs
• Wharerata Patunamu Mohaka Esk Kaweka Gwavas
  Ngaumu
• Value 17m

• Ngati Kahungunu Iwi
• 26m

16
The Carbon Equation
17
carboNZero programme

• Measure
• Manage
• Mitigate
• Market

• Verified emissions inventory
• Certified emissions reduction
• Carbon neutral status
• Branded product/ service/event

18
Grove Mill case study

• Capital investment in energy efficiency and
  resource efficiency
• Bottom line savings
• Point of difference
• Improved market access
• Improved share value
• Market capitalisation
• Value of certification many times the investment

19
1. Individual Take Home Points

• Emissions Trading will impact on everyone
  particularly fisheries.
• Individually assess your carbon footprint reduce
  what you can, then offset.
• If you preach sustainability and care for our
  environment then practice what you preach.
• Aim for carbon neutrality before it is forced
  on you. Make it work for you (marketing).

20
2. Iwi Take Home Points

• Iwi must implement a single balance sheet
  approach for all assets within the rohe.
• Free allocations of carbon credits/NZUs should be
  held to offset emissions trading liabilities.
• Create a separate intra Iwi market for NZUs.

21
3. Conference Take Home Points

• Learn from the forestry experience
• Support Te Ohu Kaimoana, Climate Change and other
  pro Iwi fisheries submissions before the Finance
  Expenditure.
• You are welcome to join and Climate Change Iwi
  Leadership submission.
• Treat Iwi fisheries as a collective
• Advocate collectively for NZUs to offset
  financial impacts on industry as a whole.