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The Risks of Pine Carbon Farms

Author: Ben O'Connell
/
4 MIN READ

Carbon farms are permanently locking up New Zealand landscapes and could land us with more carbon costs, says the Parliamentary Commissioner for the Environment. With the aim of sequestering atmospheric carbon dioxide through tree growth, pine carbon farms are a common approach to carbon farming. Typically consisting of fast-growing radiata pine, carbon farms are a […]

Carbon farms are permanently locking up New Zealand landscapes and could land us with more carbon costs, says the Parliamentary Commissioner for the Environment.

With the aim of sequestering atmospheric carbon dioxide through tree growth, pine carbon farms are a common approach to carbon farming.

Typically consisting of fast-growing radiata pine, carbon farms are a quick way to reduce emissions and earn carbon credits.

But a new report says that radiata pine is the only economically viable tree for carbon farming, but it could still leave the Crown with future carbon liabilities if pests, disease, fire or extreme weather events cause damage.

“Climate Virtue Signalling” and the Future of Carbon Forestry

“Climate virtue signalling and perverse carbon incentives threaten to radically change our classic rural landscapes in a widespread and visually jarring fashion,” says climate researcher and Victoria University research fellow Dr Nathanael Melia.

He says that carbon forestry should be avoided, and that this report is savvily timed to align with news that the government plans to hit climate targets with mass carbon forestry, which he calls “a get-out-of-jail-free-card”.

“I foresee that carbon forestry will become what mortgage-backed securities were to the global financial crisis…it will do no real-world good, inflate the carbon credit bubble, make very few very rich, derail climate mitigation, and cause systemic turmoil.”

Experts on the Need for Change in Forestry Practices

UC forestry Emeritus Professor David Norton says the report is incredibly timely as we face unprecedented climate change.

“The 1.5 degrees atmospheric warming target has been exceeded, and increasingly severe weather events are becoming the new normal, with massive impacts on both the environment and society.

“While reducing greenhouse gas emissions is critical if we are to have any hope of a sustainable future, drawing down or sequestering the CO2 that is already in the atmosphere is also important.

“For many, this has been seen as a more tractable option as the perceived costs and impacts on our lifestyles are seen as less than those associated with actively reducing emissions.

“In New Zealand, the Emissions Trading Scheme (ETS) has seen CO2 emissions being offset by carbon sequestration, primarily by fast-growing radiata pine (often called carbon farming). This PCE report rightly questions these assumptions and the way the ETS operates.

The Issue of Biodiversity

“Unlike native forests, permanent exotic tree plantings do nothing for native biodiversity, will become major reservoirs for exotic plant, fungal and animal pests, and can facilitate wildfire.

“Mature radiata pine plantings are also more prone to damage from severe storm events than native forests, leading to downstream effects, especially as climate change-induced storms intensify.

“Native forests cannot compete with radiata pine on cost despite the multiple values they provide – so one of their key recommendations is that we need to change the policy settings to recognise these liabilities.

“While the PCE report doesn’t say this explicitly, carbon farming is essentially treating the climate emergency as just another opportunity to make money while ignoring future financial and environmental liabilities, which is, in my view, morally corrupt.

“Sadly, the recent proposal by Government to use public conservation land for even more carbon farming reinforces this approach.”

Forestry as a Strategic Asset

Tim Payn, principal scientist for Scion, says that whether publicly or privately owned, forests should be considered an important national strategic asset.

“They remain a critical part of our climate change response, and they are going to have to look different in the future, to continue playing a role in decarbonising a growing economy.

“Climate challenges, such as more intense storms and severe droughts, mean we must consider new forestry systems that can withstand these risks.

“The report clearly outlines opportunities, for example, transition forests, alternative species, standing forests for ecosystem services and the need to shift away from clear-fell harvesting systems in some areas.”

The Ecosystem Services of Radiata Pine

New Zealand has embraced radiata pine forests as carbon sinks. They help stabilise soil, reduce erosion, and improve water quality by absorbing sediment and pollutants.

These plantations also provide habitat for native species. But they may not be as diverse as native forests; they threaten future biodiversity.

The benefits of forests are hard to grasp but include carbon sequestration, erosion control, flood mitigation, water quality improvement, biodiversity enhancement, and recreational and mental health benefits.

These services are often not recognised in market transactions, which can result in them being undervalued in decision-making processes.

Financial Impacts of Carbon Farming

One 2019 Scion study quantified the ecosystem services that these forests offer. The study estimated that, on highly erodible land, radiata pine forests can generate between $330 and $640 per hectare per year in economic returns.

This includes both traditional timber value and non-market environmental services. In many cases, the value of avoided erosion and reduced nutrient runoff exceeded the value of timber alone, particularly on steep slopes where erosion is more severe.

Smarter, More Strategic Land Use

Establishing forests on such terrain does come with costs. Initial establishment expenses in the first year range from $1,330 per hectare on flat land to $1,706 per hectare on very steep land.

Thinning costs in year seven range from $700 to $900 per hectare, depending on the slope. Additional infrastructure costs include land construction, ranging from $2,079 to $9,504 per hectare, depending on slope and soil class, and internal road construction, which can range from $39,427 to $119,475 per hectare, based on erosion susceptibility. Harvesting and transport costs also vary widely, from $19 to $38 per tonne.

Importantly, the study advocates for smarter, more strategic land use rather than blanket afforestation. Targeting afforestation efforts to highly erodible land can improve both environmental and financial outcomes.

It suggests that integrating forestry on less productive land while intensifying agriculture on higher-performing areas may provide a more sustainable and profitable approach overall.

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