Global Warming, Carbon Credits and Trees

Carbon credits present a business opportunity for landowners/treeowners who own plantations or environmental plantings or are interested in growing trees in the future.

As the global warming debate intensifies, governments and businesses are becoming very aware of their impact on the environment.

Many members of the general community are also looking at ways to reduce the impact of their greenhouse gas emissions.  One of the ways the carbon footprint of every business and individual large and small can be reduced is to plant and maintain trees.

As trees grow, they absorb carbon dioxide from the atmosphere, and then store the carbon in the wood in the tree. About 50% of the dry weight of a tree is stored carbon, Growing trees is still the only proven method of reducing carbon dioxide in the atmosphere.

This can be done in many ways and there are several companies offering specialist advice on all aspects of carbon sequestration, carbon credits and carbon trading.

FFORNE specialises in growing trees for sawlogs and is now exploring ways to combine this activity with attracting carbon credits.  It will be utilising the advice of voluntary carbon trading specialists such as TreeSmart .

CARBON EMISSION TRADING SCHEMES

There is no official Australia-wide trading scheme yet, but NSW does have a limited one.
At present an intense debate is being conducted over the future structure of the forthcoming Australian emissions trading scheme, particularly for forestry.

One of the issues of interest to the plantation industry is the current non-recognition of carbon stored in Harvested Wood Products, despite the scientifically proven fact that a good percentage of carbon is retained for long periods in timber products after a tree is harvested.

If the carbon stored in Harvested Wood Products is recognised in the future Australian Emissions Trading Scheme, there will be great opportunities to combine growing trees for carbon sequestration and eventually harvesting those trees for high quality timber.
Read more in detail on page 4 of the TreeSmart News December 2007

Questions and answers on carbon and plantations

Q             What is a carbon credit?
A             One carbon credit represents one tonne of carbon dioxide prevented from reaching the atmosphere, or removed from
               the atmosphere.

Q             What are the different types of carbon credits?
A             1. Sequestration (removing carbon dioxide from the atmosphere)
               2. Carbon dioxide saving projects (such as energy efficiency programs)

Q             What is the best method of reducing carbon dioxide in the atmosphere?
A             Trees are still the most practical way of removing carbon dioxide from the atmosphere

Q             What is a carbon credit worth?
A             In the absence of an official Australian emission trading scheme, the voluntary retail price of carbon credits is between
               $10-$20 per tonne of CO2 .

Q            When are trees the most efficient at storing carbon?
A            Between 5 years and 20 years after planting

Q             How much carbon dioxide does my car emit each year?
A             Based on the average mileage (14,000km pa) of a car, 4 tonnes of carbon dioxide are emitted. 

Q             What area of trees will offset 4 tonnes of carbon dioxide?

A             Approximately a fifth of a hectare of trees will offset this amount of carbon.

Q             Are my trees eligible for carbon credits?
A             According to the Kyoto Protocol, only trees planted on cleared land as at December 31, 1989 are eligible. There are also
               a number of requirements with respect to tree height, canopy coverage, size of plantation etc.

Q             What area of farm forestry plantation is required to sequester one tonne of carbon dioxide in one year?
A             A typical eucalypt plantation in North-East Victoria would sequester about 1tonne of CO2 in one year from about
               0.05 hectares (i.e one hectare would sequester about 20 tonnes of CO2 in an average year of that plantation’s life).
               This, however, would be dependent on the growth rate of the trees, which is primarily a function of the rainfall on the
               plantation.

Q             How do I get more information and discuss my plans?
A             Contact Graeme Stoney at FFORNE by email or on mobile 0428 576 090.