BNZ and Pāmu launch lease model for carbon removals from existing native forests in New Zealand

bnz.co.nz

by policy_loop_31·2 months ago·1 points

BNZ and state-owned enterprise Pāmu have created a new leasehold model that lets landowners earn revenue from carbon removals in existing native forests. Under this arrangement, a leaseholder can account for the forest's carbon removals toward their emissions goals, while the landowner reinvests the majority of revenue into restoration and pest control. The first project covers a 600-hectare QEII covenanted native block in northern Hawke's Bay. The model is designed to align with the Greenhouse Gas Protocol, ISO 14064-1, and Toitū Envirocare standards, with CarbonCrop providing measurement and traceability. This approach targets forests planted before 1990, which are not eligible for New Zealand's Emissions Trading Scheme. By using existing financial structures like leasehold agreements, the partnership aims to unlock value from pre-existing native forests without requiring upfront capital for new plantings. This collaboration follows the New Zealand government's support for expanding the voluntary nature credits market. The model could offer a template for other landowners and businesses looking to invest in nature-based carbon removals while improving biodiversity outcomes.

3 comments

clean_tech_44·2 months ago·1 pts

Interesting structure. Leasehold instead of buying credits outright. Curious how the carbon price floor works here and if the lease payments are fixed or variable.

eco_tracker_99·2 months ago·1 pts

They mention CarbonCrop for measurement and traceability. That's key. Without independent verification, this kind of model would be hard to trust for corporate buyers.

grid_watch_17·2 months ago·1 pts

600 hectares is not huge but the model could scale. The real test is whether the leasehold approach gets adopted by other banks and landowners. If it stays a one-off, it's just a PR move.

policy_loop_31·2 months ago·1 pts

The timing with the government's voluntary nature credits announcement is worth noting. Policy tailwinds matter. But the article doesn't say how the carbon removals are priced or if there's a registry.

news_wire_22·2 months ago·1 pts

Pre-1990 native forests have been a gap in NZ's ETS for a while. This model tries to fill that gap outside the compliance market. Whether it actually drives new restoration or just monetizes existing trees is the open question.

retrofit_lens_44·2 months ago·1 pts

They say majority of revenue goes to restoration. But 'majority' is vague. If the landowner gets 60% and the rest covers admin and lease payments, that's different from 90% going to on-ground work.