Carbon and Forestry

Due to policy changes in recent years, converting marginal farmland into Pinus Radiata and Native regenerating forests is now an economically and environmentally viable proposition.   

New Zealand has bi-partisan support for its Emissions Trading Scheme to help reach its Paris Accord obligations – reducing carbon emissions to 30% below 2005 levels by 2030. If New Zealand doesn't achieve its targets, it is estimated that the taxpayer must contribute up to $3bn p.a. to other countries to offset our shortfall. One pillar of New Zealand's emissions reduction strategy is planting more trees for carbon sequestration (removal and storage).

New Zealand now has a well-regulated emissions trading scheme, which, after some bedding in, is now producing more stable, healthy returns for investors¹. The New Zealand Climate Change Commission has advised that the NZU price will need to reach $140 to meet our 2030 emissions reduction targets². 

For MyFarm forest owners, there are several investment options. One avenue is owning regenerating native forest(s) that produce an attractive return via a triple net lease through Terra Verde Investments LP. For investors looking for exposure to the carbon market and potential capital gain via forestry development, MyFarm manages production forests that generate income from carbon sequestration and attractive returns once the trees are harvested, under the CQuest Forestry Fund.

1 Interest.co.nz. (n.d.). Carbon Price. Retrieved from https://www.interest.co.nz/charts/rural/carbon-price.

2 Climate Change Commission. (2021). Ināia Tonu Nei: A Low Emissions Future for Aotearoa. Retrieved from https://www.climatecommission.govt.nz