Carbon Credits

Accredited Abatement Certificate Provider

In February 2005 Forests NSW was fully accredited as an Abatement Certificate Provider under Rule 5 – Carbon Sequestration of the NSW Greenhouse Gas Abatement Scheme. As a result, Forests NSW now has authorisation to create, register and trade NSW Greenhouse Abatement Certificates (NGACs).

The accreditation and authorisation to register NGACs was awarded after Forests NSW passed an independent audit of its carbon accounting system. This made Forests NSW the world’s first independently audited and scheme-approved supplier of forest sequestration credits within a greenhouse gas abatement scheme.

The Forests NSW has developed a complete, transparent and verifiable accounting system that establishes a clear audit trail. It is believed that this is the most sophisticated, accurate, robust and therefore dependable carbon accounting system for forest sequestration projects anywhere in the world.

Carbon Trading

Under the NSW scheme, strict controls are implemented to ensure that:

• Only verified increases in carbon stocks within eligible forests can be used to create NGACs;
• NCACs can be created only up to the minimum carbon stocks that will be maintained over 100 years;
• NGACs cannot be generated from sequestration that is used to offset emissions under any other Scheme;
• All NGACs are registered;
• Ownership of NGACs is tracked via a Registry;
• Providers of NGACs must remain in compliance with the Scheme at all times.

These controls ensure that any purchaser of a carbon sequestration NGAC can be confident that the certificate is legitimate and is a genuine and verified offset against the emission of a tonne of carbon dioxide.

Forests NSW Carbon Pool

The Forests NSW Carbon Pool currently consists of 32 individual forests, or “eligible stands” located in north-eastern NSW.

The 32 properties making up the Pool cover a total area of 24,991 ha, of which less than half is plantation. The remaining area consists of existing patches of native forest and riparian vegetation that are retained for environmental purposes around and within the plantation.

The 10,329 ha of eligible plantation area is planted predominantly to four species that occur naturally in north-eastern NSW; spotted gum (Corymbia maculata/variegata, 3,658 ha), Dunn's white gum (Eucalyptus dunnii, 3,576 ha), blackbutt (E. pilularis, 1,562 ha) and flooded gum (E. grandis, 980 ha). The remaining 553 ha is planted to a combination of 9 other species.

The oldest stands within the Pool were planted in 1996, with the majority of area planted from 1997 to 2000. An average stand within the Pool is stocked at about 600 stems per hectare, and currently has trees that are about 12 m in height. At maturity, these species can exceed 50 m in height.

Operations relating to the establishment, maintenance and harvesting of Forests NSW plantations are designed to comply with the NSW Plantations and Reafforestation Act (1999) and the NSW Plantations and Reafforestations (Code) Regulation (2001). The Code sets out standards designed to protect soil and water resources, cultural heritage and biodiversity.

Typically, plantation areas within the Forests NSW Carbon Pool consist of several planted species, often comprise several age classes, and are interspersed with areas of native forest. This results in greater diversity in forest cover and habitat provision, as well as enhancing other biodiversity and environmental aspects.

Forests NSW carbon accounting system

The Forests NSW carbon accounting system has been established and is maintained from the Forests NSW office in Grafton, where the carbon accounting team is based.

The carbon accounting system is based on traditional inventory systems, and uses models developed from specific field research undertaken by Forests NSW over the past six years.

The process of accounting involves two main steps: the validation that a land unit has been subject to land-use change from a stipulated base year (1990), and the estimation of carbon stock change.

1. Determination of land-use change
   
   Forests NSW verifies that land areas meet the definition of reforestation using aerial photography, flown mostly between 1987 and 1989. Ortho-rectified images of these pre-1990 photographs are used to assess and digitally capture any areas of existing forest (greater than 0.2 ha in area) at this time.
   
   
   Figure 1. Interpretation of land-use change.
   
   
2. Estimation of carbon stock change

   Forests NSW stands are measured every 5 to 7 years, at a sampling intensity of 1 plot per 10 hectares. The estate-wide sampling error from this type of inventory will be less than ± 5%. Growth between measurements is estimated using species-specific stand growth models, developed from a series of permanent growth plots established across the Forests NSW plantation estate.

   Forests NSW has undertaken a series of destructive harvests of below- and above-ground components of the four main hardwood species. Trees of varying age and size and from a range of sites have been sampled. Sub-samples of each tree component (such as leaves, stem wood and bark) are dried and weighed, then sent to independent laboratories for carbon fraction analysis.

   Data from these studies are used to derive models that are then applied to forest inventory parameters to obtain a precise estimate of the carbon stored, and hence carbon dioxide sequestered.
   
   
   Figure 2. Forest inventory in a 9-year-old stand.

Estimation

All stands are stratified by age class and species. Productivity and stocking are determined from inventory data where available, or from a geo-spatial model developed by Forests NSW that is based on regional landform and rainfall data.

Three carbon pools are estimated: tree, debris and soil. Above- and below-ground tree carbon stocks are estimated on an individual tree basis, and summed for the stand. Carbon in the debris pool is estimated by accounting for the transfer of carbon from the tree pool due to harvesting and tree mortality, and uses a two-stage decomposition model. Soil carbon stocks are estimated using a conservative model that is based on published trends within plantation systems.

Carbon stock in other vegetation is not currently included in the accounting system. This pool represents only a very small proportion of the total carbon stock, and there is generally little loss of carbon in this pool with plantation establishment on pasture sites.

Uncertainty analysis

A key component of the estimation process is the calculation of the level of uncertainty in the estimate of carbon stock change for a given year. The uncertainty associated with inputs to the calculation process is modelled using specialised statistical software to obtain the probable range in output values.

Under the Kyoto Protocol, uncertainty analyses are used to identify key areas for improvement in the calculation process. The NSW Scheme has a more rigorous approach for carbon sequestration, and requires that the number of NGACs that can be created is reduced dependent on the relative uncertainty in the estimation process. This results not only in the creation of more certain or reliable certificates, it also acts as a mechanism where there is direct financial incentive for participants to establish accurate and reliable systems for estimation.

Permanence of carbon storage

The total number of NGACs that can be generated from a pool over time is restricted to the minimum carbon stocks within the eligible forests over a 100-year timeframe.

Other components

The carbon accounting process is supported by a rigorous record keeping system, which holds and maintains the information required to substantiate assertions on carbon stock change within the estate.

Forests NSW has proven systems in place to accurately monitor forest status and growth, such as a sophisticated geographical information system that is updated weekly.

In addition, Forests NSW has a risk management process that allows for the timely detection and intervention of damaging influences, such as fire, pests and diseases.

More information

Further information can be obtained by contacting the Carbon Accounting Group on (02) 6640 1632

Carbon accounting sets out the specific issues associated with measuring and verifying the quantum of carbon sequestered in new planted forests

www.greenhousegas.nsw.gov.au

www.ggas-registry.nsw.gov.au

www.nges.com.au

https://www.carbonplanet.com