Forest deal delivers double environmental benefits

Environment Minister Nick Smith today commended Puketapu 3A Incorporation and Mighty River Power on their 2400 hectare forest proposal in Taupo that will reduce carbon emissions and nitrate run-off.

"This innovative agreement perfectly illustrates the benefits of the Government's Emissions Trading Scheme and its support for the Lake Taupo Protection Trust," Dr Smith said. "It also demonstrates the importance of the relationship between the Crown and Maori on afforestation.

"The ETS provides the financial incentives for landowners to improve the environment by planting trees and reducing nitrate pollution.

"The parties in this afforestation project have made it plain it would not be occurring if the Government had not settled the ETS last year. This complex scheme encourages those that burn fossil fuels to contribute to forest planting.

"The tragedy of the last five years is that New Zealand has seen the loss of more than 65,000 hectares of forest due to uncertainty and perverse incentives under the previous Government to deforest. A key objective of the ETS is to boost forest planting and this deal in Taupo - so soon after the legislation was passed - is a clear sign that is happening.

"I commend Puketapu 3A Incorporation, Mighty River Power and the Lake Taupo Protection Trust on the initiative and hope others will see the economic opportunities to make a positive difference to the environment."