Putting the carbon back in Native Forests.

Ok- So here is the promised policy review that I put together- it is a little wordy but hopefully captures for you the situation as it currently stands and where we need to go. I havent modified it for the blog.

The reference list is at the end if you need further reading and I hope the format is a little intact if you need to copy and paste for use offline.

Aiming to have a draft letter up tomorrow and some contact details.


Putting the Carbon back in State Forests: A Review of Regional Forestry Agreements in a Carbon Constrained Policy Framework aiming for Zero emissions by 2020

ISSUE.


This review will look particularly at the NSW Forests Act 1916 and how the prescribed management practice extolled can help NSW achieve a zero Greenhouse Gas Emission target by 2020. The Forests Act 1916 underpins the management of Australian forests in four States, which has been regulated by Regional Forestry Agreements since 1997. The Regional Forestry Agreements were founded on a basis of settling conflicting views on forest management practice.

BACKGROUND

Deforestation has a significant impact on Australia's Greenhouse Gas Emissions (GHG) with an estimated 77000 Gg tons of Carbon Dioxide equivalent emissions . A proportion of this impact is mitigated by reforestation projects delivering a net amount of Co2 equivalent at 56000 Gg tons . Forested land is held in multiple ownership including, private land holdings, National Parks and State Forests. Government must take a leadership role in mitigating GHG Emissions and make changes to its own portfolio while commencing on a parallel process with private land-holders.

NSW Forests are a highly contested area of natural 'mining ' and have been subject to many conflicts especially with conservationist in regards to the management of the forest estate. The argument that forests are excellent natural carbon sinks and should be valued more in this context is juxtaposed against the reality of a 6000 kiloton per annum export wood chip industry and logs for a local timber industry .

Growing trees and retaining forested land is acknowledged as a one of the many actions required to reduce GHG. It is a low technological area that can provide employment across a mixed age workforce, backed by sound research and development into the attributes and quality of planted forest estates. The current workforce for timber harvesting and mill workers is faced with an aging workforce crisis and is finding it difficult to find and retain younger workers in a physically demanding and often dangerous occupation.

Regional Forest Agreement have been adapted to provide security for the saw mill and woodchip industry by forecasting the volume of logs available from numbered forestry compartments over a twenty year period. Anecdotal evidence suggests that high quality saw logs are still in demand and are more difficult to come by .


The use of Forest logs for high-end aesthetic product is acknowledged as a unique and valued added product. However, exporting of native forest wood chips to other countries at highly subsidized rates has been the practice most questioned by the conservation movement. Wood chip exports are reported as using up to 80%of the native forest resource . Wood chip exportation is a carbon intense process that takes raw product (wood chip) and ships it long distances for processing and then returned as a value added product to Australia and elsewhere. Wood chip export industry has a negative public image and draws criticism from a wide range of people who are disappointed with the lack of transparency and ability to have information released via Freedom of Information to make sound analysis of the industry value.

It is within the context of carbon constraint, conflict, ability to supply and value of the industry that this review takes place.

ANALYSIS

The NSW Forestry Act 1916 (the Act) is a policy with a primary function to support the use of native forests for timber harvest. Section 11 of the Act,' Powers and duties of the commission' clearly outlines the taking of timber powers that are conferred to Forests NSW as the principle authority to carry out and enforce the regulations under the Act and ancillary agreements such as the Regional Forest Agreements. Other features of Section 11 include the ability for Forests NSW to supply timber, seedlings, procure land and manage the forest estate. Forests NSW are to pay any dividend from a net surplus to the States Consolidated Fund at the end of the financial year.

Forests NSW under the act are also to ensure that a minimum area of no less than 3 250 000 hectares of land remain dedicated as forest and 600000 hectares is kept for the purpose of pine plantation . The dedication of these lands is to happen with consideration for public interest. Section 17.3a binds Forests NSW to providing economic and effective control over timber and other forest products. Land can also be managed that has special conservation values under section 21 A of the Act. Land that is under reserve cannot have timber operations commence without the consent of the relevant Minister . Royalty payments for removal of timber are expected and are set by Forests NSW . Forests NSW native forest operations ran at a loss in excess of $14 million and had to rely on the productivity of plantation operations to balance its trading sheet and create profit. The loss of $14 million that was absorbed by the plantation operations of NSW begs the question as to why the native forest estate continues to be included in forestry operations.

The Act under Part 4a- Carbon Sequestration rights gives Forests NSW the right to develop a carbon market and provide services in respect to qualifying carbon sequestration . The Act does not provide a directive in regards to Carbon sequestration but leaves it optional. Regulations that are prescribed further within the Act relate to retaining the quality of the timber products through land management practices such as weed exclusion.

The Forestry Act of NSW (1916) along with Regional Forestry Agreements (NSW 1997) take a 'sustainable management' approach that allows for the removal of trees for multiple purposes but mainly wood chip and saw logs. Forestry NSW is supposed to apply principles of Environmental Management Systems to the forest reserve to ensure that a comprehensive assessment is made of the reserve before commencement of an extraction operation. However, the value of the forest reserve as a carbon sink has not been considered as an economic instrument.

Recent Australian position papers on policy have begun to recognise the contribution to Carbon Pollution levels by deforestation. The recent NSW Greenhouse Plan identifies Forestry as a medium priority in dealing with the emissions from the sector . However the Australian Governments Green Paper on Carbon Pollution Reduction Scheme deliberately leaves out deforestation. The reasons sited for this are that Australia has significantly improved land protection and that a move to include deforestation is difficult due to the active forest industry .

Deforestation is recognised by Governments internationally as a contributing factor to Climate Change. The United Nations have made many recommendations in regards to this issue including the landmark Agenda 21 adopted in 1992 which adopts a preservation and enhancement approach to biologically diverse areas . A preservation and enhancement approach to forest assets would ultimately produce a forest reserve that is growing in size and in quality.

A brief analysis of the quantity of logs harvested Australia wide across both hardwood and plantation softwood sends 60% of its volume to export wood chip. The export wood chip market is valued in the same report at $344 million. This compares to the much lesser volume but higher valued saw log market, which contributes $788 million to the industry from the remaining 40% . These figures are presented in a manner, which makes it difficult to scrutinise deeply the proportion of volume to income coming from NSW native forests.

Australian data sources for calculating the amount of emissions generated by the forest industry and the amount of carbon sequestered in the forest estate seem to frustrate those interested in pursuing a policy position according to Dr J Ajani . The current policy position would see the forest industry continue to extract high value carbon store logs from the forest estate and contribute to the overall increase of Australian and Global harmful Green House Gas inputs. Opportunities exist to replace forest industry jobs with data collection and forest management careers that are far less harmful to the environment. There is also a strong argument to cease native forest operation and to leave the estate intact for carbon storage purposes.

COMMENT
Forests NSW are facing many challenges in the coming years including an aging workforce and the costs of haulage of logs from the forest estate. Forest compartments for logging are further away from the infrastructure needed to process them into consumables. Add to these emerging issues the significance of Climate Change and the challenges presented by rising fuel costs a compelling case is arising for a significant change in industry direction.

With the aim to reduce NSW to a zero emissions target by 2020 the forestry industry will have to make significant changes through a major policy review that reflects a carbon constrained economy. Forests NSW are well positioned to make a valuable contribution to easing the carbon burden of the state. The current Forestry Act needs to aggressively pursue carbon storage as a major part of the forestry portfolio particularly in native forest operations. Forest accounting needs to accurately reflect the carbon value of the standing forest, with an afforestation program that creates positive growth in the amounts of carbon captured and not a decline. The focus must be on the amount of carbon held in the estate, which will have a monetary value, if the asset was available for sale in the marketplace. The carbon that is sequestered in forests must be for the benefit of the public good and only be applied to the balance of the NSW carbon account and not applied as an offset to particular projects or sold to outside agents.

Closing down of the native forest operations in NSW will have an impact on the availability of wood chip for export and high quality saw logs for aesthetic timber product purposes. With less wood chip available pricing for remaining stock will be forced upwards and result in an industry review in regards to viability which will include the carbon costs of shipping. Up ward pressure on hardwood building materials would result in a greater timber take from private landholdings, which will require continued monitoring and provide income for landholders. Landholders need a compensatory rating system that allows them to put land in reserve for forest income. A result of this upward pressure on viability will have a positive result on the recycling industry and could lead to a revival in onshore processing. Plantation timber products will remain firmly placed as a leading building material. Australia currently runs a trade deficit on forest exports to imports of $2.1 million .

Ceasing operations in native forest will have a positive social benefit and remove the stigma from forestry operations. With a newly positioned forestry industry that focuses on being part of the carbon pollution solution and the cessation of native forest operations, the industry will become a more attractive career option. This in turn could assist in solving the aging workforce by attracting younger persons who wish to be part of a solution for climate change. Taking steps to reduce emissions to zero by 2020 without impacting on jobs will be motivational for other states to follow suit and build key industry knowledge that can be exported from NSW.

Increasing the amount of plantation timber in NSW must not be at the expense of native forests or first class agricultural lands but seek out crown land holdings, and private landholdings to enter into partnership with. Private land holding partnership should be targeted at agricultural sectors, which are also high emitters of Green House Gas as this mix of farming i.e. cattle and timber could become mutually beneficial. Planted forests must include a mix of species to assist in building environmental resilience in the face of climate change, which is in line with the objectives of the United Nations Agenda 21.

NSW creates 34% of the nations carbon emissions and has a key role to play in influencing the Federal Government . The NSW Greenhouse Plan notes that land clearing represents only .75% of the emission from Agriculture, forestry and fishing but it also acknowledges the role that forests play in carbon sequestration . There are no explanation notes with the figures that consider wood chipping export, timber processing and manufacturing. This omission could be because of the difficulty and different accounting standards that are applied in regards to emissions.

The Federal Government's Green Paper failed to include native forests. Dr Judith Ajani recommends that this position should be revised due to the value of carbon stored in native forests and the cost of exclusion on other Australian business' trying to meet a carbon reduction target

RECOMMENDATIONS

The following recommendations are made to advance the forest industry in NSW to a Zero emissions target by 2020. When implemented a review period should be put in place to ensure that targets are being met.

Recommendation 1:
Amend the Forestry Act 1916 and replace this with a policy that focus' on carbon storage and plantation timber.

Recommendation 2:
Immediately cease native forest operations that supply wood chip for export.

Recommendation 3:
Develop a Carbon Accounting system for standing forests that is accurate and can be used around Australia.

Recommendation 4:
Commit funding for research and development into an onshore paper recycling industry to supply the paper and packaging industry of Australia including the use of non-wood fibers.

Recommendation 5:
Phase out Federal and State subsidies that support traditional logging industry and redirect to the establishment of a fiber industry.

Recommendation 6:
Remove Rural Land Protection Board land rates that tax native ecosystems that are not in use for farm production.

Recommendation 7:
Target marginal farmland for multipurpose fiber production and timber plantation.

References
Ajani J. (2008) 'Australia's transition from native forests to plantations: the implications for woodchips, pulpmills, tax breaks and climate change', Agenda: A Journal of Policy Analysis and Reform, 15(3), 2008.

Australian Forest and Wood Products Statistics-September December quarters 2008 http://www.abare.gov.au/publications_html/forestry/forestry_09/forestry_09.html accessed online April 2010.
Department of Climate Change and Energy Efficiency, National Greenhouse Gas Inventory,

http://ageis.climatechange.gov.au/# accessed online April 2010.

Department of Climate Change and Energy Efficiency, Green paper CPRS

http://climatechange.gov.au/publications/cprs/green-paper/cprs-greenpaper.aspx

accessed online April 2010.

Department of Environment and Climate Change NSW

http://www.environment.nsw.gov.au/climatechange/greenhouseplan.htm accessed online March 2010.

Findley A. Interview conducted with Davis and Herbert Mill manager March 2010.

Forestry Act 1916, accessed online via

http://www.austlii.edu.au/ March 2010.

United Nations Division for Sustainable Development

http://www.un.org/esa/dsd/agenda21/res_agenda21_00.shtml accessed online March 2010