Problem overview:

     International commitments: The Kyoto Protocol for the Framework Convention on Climate Change, established firm targets for national emissions levels and identified key elements in how countries could achieve those targets. The Kyoto Protocol made provision for trading in emission credits and for the accounting of carbon dioxide absorbed by forests planted after 1990 as carbon sinks.

     Integrating stakeholders: Planting 100,000 hectares of new forests can take up to a million tons of carbon dioxide per year from the atmosphere. But planting forests requires land, labor, and financing. Here is how Australia is networking with State Governments to form joint ventures with landowners for hardwood and softwood plantations.

Background:

     Meeting International Commitments by forging partnerships with the community

     In 1998, the State Forest program of New South Wales began offering annual payments to rural landowners that are willing to have trees grown on their property. The new forests will be planted and managed by State Forests and in return an annual payment will be made to the landowner for the use of the land.

     State Forests of NSW is a profit-making government trading enterprise, now trading as Softwood Treefarms. It is the largest grower and seller of softwood timber in NSW. It manages a softwood plantation estate of 208,000 hectares and sells around a million cubic metres of softwood sawlog and half a million tonnes of softwood pulp logs annually.

The joint venture softwood treefarm programme contacts landowners using a very professional and attractive advertising programme on television. If a landowner has suitable land, Softfarms will pay to grow trees on the land. The terms are:

• $1,000 up front payment.
• $1,000 up front payment.
• An annual license fee paid quarterly in advance, of around 5% of the land value and indexed to the CPI.
• Additional payments of 2.5% of the net proceeds from the sale of the timber crop after harvest.
• Carbon Credits. In the future, a value may be put on the ability of plantations to capture carbon dioxide gas. Industries that produce carbon dioxide will need to buy carbon credits to offset any increase in carbon dioxide emissions. Farmers will share in the sale of these carbon credits to industry.
• Grazing Rights. When the trees are big enough the land beneath the trees can be grazed.
• State Forests can also engage the landowner to do site work and some management of the plantation.

The hardwood planted forests operate the same way.

• The Government will complete site preparation, plant the trees, manage the plantation and market the trees to their best possible value.
• The landowner will hold clear title to the land, manage the plantation jointly with State forests, and pay land taxes as normal.

Benefits to the environment include

• Reduction of erosion
• Enhanced catchment protection
• Shelter for crops and livestock
• Greenhouse gas absorption
• Weed suppression
• Wildlife refuge

The Timber Plantations Harvesting Code requires a harvesting plan that will minimize soil erosion, prevent blockage of drainage structures and the construction and maintenance of fire breaks. Ecological values of wetlands and any Aboriginal relics and artifacts and native animals and plants must be protected where applicable.