Eden-Monaro benefits in new forests funding

Scott Morrison will use the Emissions Reduction Fund to support new forestry plantations across five states, in­cluding­ in the by-election battleground seat of Eden-Monaro.

Scott Morrison at the Allied Natural Wood Exports woodchip mill near Eden, NSW, on June 23.

Scott Morrison will use the government’s Emissions Reduction Fund, described by Anthony Albanes­e last week as an “in­appropriate use of taxpayer funds”, to support new forestry plantations across five states, in­cluding­ in the by-election battleground seat of Eden-Monaro.

With the by-election being held on Saturday, the government will announce an overhaul of the ERF allowing access for new plant­ation and farm forestry projects­ under its combined $4.55bn Emissions Reduction and Climate Solutions funds.

Under previous rules, planta­tion forestry and farm forestry projects in high-rainfall areas were largely excluded from the ERF. The change will allow businesses to earn Australian carbon credit units through new forestry plantations.

The government will slash red tape for projects in five pilot regional­ forestry hubs in the NSW and Victorian South West Slopes, Western Australia’s southwest, South Australia’s Green Triangle, the NSW northeast and northern Tasmania.

The Eden-Monaro local government areas of Yass Valley, Snowy Monaro and Snowy Valley­s will be covered by the new ERF forestry hubs. Highlighting the importance of forestry jobs in the traditional bellwether seat, the Prime Minister travelled to Eden last week to visit the Allied Natural Wood Exports woodchip mill alongside Liberal candidate for Eden-Monaro Fiona Kotvojs.

Visy is advancing plans with forestry investors to secure new timber plantations to meet shortfalls in wood fibre and to sequester carbon through the creation of a carbon sink. The packaging giant is working on establishing an initial footprint of new plantations of more than 20 million trees, estimated to yield up to eight million­ tonnes of wood fibre at maturity and soak up more than 300,000 tonnes of CO2 per year.

A Visy spokesman said the “important rule change” would support new plantations, investment and jobs in regional forestry areas across the country.

“Visy is particularly keen to support forestry initiatives that provide a triple win for the economy, the environment and the community by providing wood fibre for Australian manufacturing, ACCUs to offset emissions and jobs in regional Australia,” he said. “It also continues Visy’s investm­ent in onshoring Aust­ralian manufacturing.

“The plan calls for establishing an initial footprint of new plantations of more than 20 million trees, requiring an investment of over $200m, with scope for further investmen­t beyond that.”

Visy, which acquired Norske Skog’s operations in Albury last month and operates eight paper machines along the east coast, pledged in 2017 to invest $2bn in Australian manufacturing over 10 years.

It is understood that the government is considering adding future­ forestry hubs, including Victoria’s Green Triangle, which can manage water impacts assoc­iated with plantation projects.

Emissions Reduction Minister Angus Taylor said the government was delivering on its elect­ion pledge to protect forestry jobs by allowing the sector to participate in the ERF. The fund overhaul is designed to boost invest­ment in the forestry sector, which has been impacted by bushfires and the COVID-19 pandemic.

“Reducing red tape for projects located in the five regional forest­ry hubs will support regional jobs and investment, including in com­munities hard-hit by last sum­mer’s bushfires,” Mr Taylor said. “This will make it easier for the private sector to invest in new Australian forestry projects, supporting­ jobs and reducing emissions.

In a letter to Mr Morrison last week, the Opposition Leader said “Labor remains opposed to the taxpayer-funded Emissions Reduction Fund”. However, Mr Albanese­ told him Labor would respect all existing ERF contracts.