Tipu Green

FAQ

What is a Carbon Credit?
Carbon credits are essentially intangible – that is, you can’t touch it or feel it like but they can be traded on the carbon markets like an ordinary share on the stock market.

Once you register your credit with the NZ government – you are given an identification number and they are put on the register. If you sell these credits overseas they are then transferred over to the registry of that country.

How do I know how many credits I have?
Basically – if you are a forestry owner the more trees you have the more credits you can apply for. The amount of credits you have is measured depending on the age of the forest and the type of tree variety you have and a carbon value is calculated. This value is then confirmed by the NZ government, registered in their database and allocated to the owner.

If you are an Emmiter (depending on your industry) you will be allocated a certain amount of credits that you can use to offset your carbon footprint. If you have a shortfall – then you either have to cut down your emissions or buy credits off someone else.

How do you get a Carbon Credit just for owning trees?
There is a minimum amount of trees you need to have before it is even worthwhile considering – but basically trees are good for the planet they ‘eat’ bad things in the air which scientists say are contributing to the deterioration of our planet.

Who would want to buy Carbon Credits?
Some large companies like airlines, agriculture and energy companies put pollution in the air so they have to restore the balance in some way – that is why they purchase carbon credits so as to offset the pollution they are putting into the environment. In some countries it is voluntary to do this and in some countries the government forces companies to restore the balance.

How do you sell your credits?
Both domestic and internationally Tipu Green can assist with finding a buyer that strikes the balance between obtaining optimal price and matching with a preferred purchaser. Once a decision to proceed is made the transaction occurs via a relatively standard sale and purchase agreement.

How is the ETS related to Carbon Credits?
The ETS or the ‘Emmissions Trading Scheme’ was enacted in NZ in 2008 and it sets out how different industries like Transport, Energy, Industrial Processes, Forestry and Agriculture should be treated when it involves either emissions or the granting of carbon credits.

When did Forestry Enter the Scheme and when do Emitters enter?
Most of the provisions of the NZ ETS have not yet taken effect due to delayed entry dates. Only the forestry sector has entered the NZ ETS, from 1 January 2008. Some emitters will enter from July 1 2010. (See key dates).

What forests are eligible under the ETS?
Forestry in the ETS covers two main areas. Pre-1990 forests and Post-1989 forests. No mature indigenous forests Pre-1990 are eligible for carbon credits, but indigenous forests growing after 1990 are eligible. Pre-1990 exotic forests are eligible and credits are allocated by date of ownership.

Is it Mandatory or Voluntary to be in the ETS?
All Pre-1990 forests are automatically included in the scheme whereas Post-1989 forests are voluntary.

What happens if I cut down the trees?
If you have a pre-1990 forest then there will be no liability if you replant or allow the forest to naturally re-generate. If you change the land-use ie) from forest to farm, then liabilities will arise. Basically, once you go into the carbon credit regime it is for the longer vision of maintaining the ongoing life of our forestry and at the same time collecting carbon credits and money from forestry. In simple terms – ‘a double dip of the chip’.