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Making
The Waitangi West
Paradise Peninsular
Pay for Itself
Understand before we proceed that involvement in the NZ ETS is voluntary (at least it is at the present time) for property owners. Unfortunately the general public will not be so privileged and will have no choice but to suffer the additional costs when 'Carbon Taxes' are eventually added to almost everything they purchase.
However, as there is evidently a passionate determination by all of those national leaders that have signed on to the Kyoto Climate Change Response Protocol to proceed to that end - regardless of justification or public sentiment - the only realistic option for holders of large tracts of fertile land that is not adequately earning its keep is to take full advantage and exploit the ETS mechanism to their own benefit where they are given a perpetual annual income with no gamble involved.
There are two criterion relating to the allocation of New Zealand Units (NZU) - otherwise known as 'Carbon Credits' - by the New Zealand government. One refers to forests that were in existence prior to 1990 (pre-1990) and the other refers to forests planted after December 1989 (post-1989).
a. For the former those who own property that has been forested, either commercially or otherwise, will be eligible to receive a one time allocation of NZU credits at the rate of 60 units per hectare with a 30% crown cover.
b. For the latter - those with property that was planted, or is yet to be planted, after December 1989, and who wish to participate - an annual allocation of up to 27 units per hectare (depending on the species planted). ie: Forest cultivation that has a crown cover of 30% per hectare. The allocations begin immediately the seedlings are planted. The larger the forest farm the higher the income earning potential.
More details on this process can be had HERE
Assuming the various high yield species (such as Radiata Pine and Exotic Hardwoods) are planted carbon credits at the rate of 27 New Zealand Units (NZU) 'per hectare' (that's 11 per acre) will be allocated annually.
On average to achieve the 30% crown cover required to qualify for that allocation 203 stems must be planted per acre. The government value for each NZU is NZ$25.00. However, the actual buying and selling price on the Global Carbon Trading Market could be lower or higher depending on market forces at the time of sale. Very much like the Stock Exchange mechanism. As recently as May 2011 Barclay's trading wing have predicted that NZUs will be trading between the equivalent of NZ$42.00 and NZ$53.00 in 2012 and beyond. Do your own sums.
The Waitangi West Peninsular qualifies for the latter and covers an area of more than 8,400 acres (3,400 + hectares) of highly fertile grazing pasture. As such the potential for converting part, or all, of that to a very lucrative Carbon Farming operation is enormous.
For example, as detailed in the Part A video presentation, if just 4,000 acres were to be planted with forest and the remaining 4,400+ acres used for other profitable development, there would be an annual NZU allocation of (4,000 x 11 unit/acre) 44,000 units. The government valuation at $25.00 per unit is $1,100,000. And there would be very little to be done after the planting to earn it. These credits can be traded at any time by the recipient on the global carbon trading market.
6,000 acres planted earns 66,000 NZU at a government valuation of $1,650,000 per year and more than 2,400 acres remains for supplementary development.
8,000 acres planted would reap an annual allocation of 88,000 NZU with a government value of $2,200,000, leaving more than 400 acres for other income producing or residential development, and with the total property acquisition costs being covered by carbon credits alone in just 7 years.
This is a once in a lifetime opportunity to not only be assured a very respectable perpetual annual income but also to enjoy a blissful almost entirely self sufficient lifestyle that most people could only dream of. A wholesome crime free, pollution free, stress free, safe haven sanctuary environment in which to raise children. There is also huge potential for additional development that would have significant extra profits guaranteed.
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