INDIGENOUS CARBON STOCK TABLES CONSULTATION                      
    MAF is currently consulting on new Indigenous Carbon Stock Tables. Below is a calculator to compare the current with the proposed. The proposed sequestration rates are lower up to year 8, the same at year 8 and then greater than the current average of 3 tonnes per year.  
     
                                         
    Project date starting price for CO2 $ Annual rises        
            Previous return   Net for period   NZU price   Area (ha)   Value    
    Indigenous - current   Age           $      
                                         
    Indigenous - proposed                     $      
                                         
                   
    INDIGENOUS FORESTS AS AN EMISSIONS TRADING SCHEME OPTION?      
    In order to investigate whether native trees are viable for a carbon farming venture, an analysis of the present value of the future cash-flows needs to be undertaken. The starting point is the "discount rate", ie either the costs of (investment) funds or a required rate of return . This calculation needs to take account of holding costs and land use costs. The latter could be the "opportunity cost" ie what another activity may earn or a lease payment.  
     
     
    The following analysis is for one hectare:      
    Present value discount rate Land use costs $   / ha pa Other holding costs $ /ha pa  
                                         
    Period of the analysis years Annual cost inflation      
                                         
     
     
     
    AVERAGE ANNUAL SEQUESTRATION RATES      
    Proposed annual sequestration rates from year   to year     equals   tonnes CO2 pa  
                                         
    Up to year eight the old Carbon Stock Lookup Tables show greater carbon sequestered than the new Tables. Under the proposed Tables, by year fifty the carbon is more than double. The big difference is the 12 years from year 13 to 24 when the average sequestration rate is 12.1 tonnes per year (against a flat 3 tonnes pa now.)    
       
       
                                         
    To email The Tree Carbon Company click here.   To make a submission to MAF   click here.