Boost for NT forests as Watt removes carbon credit water rule

A slight tweak to carbon credit rules should open opportunities in an under-appreciated NT sector. Read what happened.

The Northern Territory’s $10bn forestry industry has had a win, with the water rule removed from the Australian Carbon Credit Unit scheme.

The commonwealth’s change means forestry projects in the top half of the Territory will be able to generate and sell carbon credits provided they have an average annual rainfall in excess of 600mm.

The water rule was included in the ACCU scheme because the federal government wanted to limit commercial forest production in higher rainfall areas.

There has been a reduction of plantation areas in Australia over the past decade, resulting in an increase in imported timber into the country.

Acacia mangiums growing at Tiwi plantation’s Melville Island plantation.

The average annual rainfall is well over 600mm in the Territory’s Top End, with Darwin averaging 1727.3mm, Katherine about 950mm and Elliott in central NT averaging just less than 600mm with 565mm a year.

The commonwealth also approved and funded the NT and Ord Valley Forestry Hub, whose role is to identify and remove barriers for sensible forestry development in the region.

Forestry Industry Association NT president Frank Miller said removal of the water rule would help drive investment into NT forestry.

Tiwi plantation’s clean woodchip pile on Melville Island, ready for export.

“It is an exciting time for the industry,” Mr Miller said.

“The removal of the rule opens up new opportunities for the forestry industry to generate and sell carbon credits in the NT.

“The arbitrary rule stunted the development of the industry as it prevented forestry plantations that received over 600mm of rainfall from accessing carbon credits.

Forestry Industry Association of the NT chief executive, Frank Miller.

“In the NT the best growing regions all receive well over 600mm of rain each year.

“FIANT expects to see an improvement in investor interest in forestry opportunities in the NT following the removal of this rule.

“This new development will enable forestry plantations, whether they be established on private, pastoral or indigenous land, to generate an additional source of income in the form of carbon credits.”

The change will benefit industry, pastoralists and Traditional Owners and the intervention by federal agriculture and forestry minister Senator Murray Watt has been applauded.

“The government should be commended on their commitment to remove the rule and support the clean and renewable north Australian forestry industry,” Mr Miller said.

“Forests and forest products in the Territory have a gross value in excess of $10bn and employ over 170 full time equivalent staff.

“The industry has the potential to expand further thanks to the Territory’s suitable growing conditions, proximity to key Asian markets and strong investor interest in the sector.”

Originally published as Boost for NT forests as Watt removes carbon credit water rule