The opportunity for creating emission offsetting revenue for Mangatu is not a new concept for the Incorporation. What has changed over the past 5 – 10 years is the value of this asset and the unique position Mangatu holds in managing carbon emission trading for the benefit of both the environment and the Incorporation’s stakeholders.
Climate Change is a globally recognised issue and Aotearoa’s emission trading scheme (ETS) reflects other internationally programmes to reduce emissions. In New Zealand the additional opportunity available is the offsetting of the storage of carbon in trees translated into tonnes of carbon sequestered. These tonnes of carbon held in trees are converted into ‘carbon credits’ which can be sold and purchased in the New Zealand ETS. Emitters purchasing these carbon credits as part of their overall emission reduction strategies – coupled with things like reducing emissions in trade and the selection of carbon neutral suppliers.
Mangatu holds a mixture of age classes and species of trees – some of which are not eligible to generate further carbon credits due to historical transactions (pre-1989 forests awarded carbon credits). This means that carbon is only one part of the Incorporation’s business strategy which includes the potential to increase plantings, extend harvest age and crop rotations, or defer harvest, and treat carbon credits like a limited resource/financial derivative.