DOMESTIC OFFSETS INTEGRITY COMMITTEE C/- DOIC Secretariat GPO Box 854 CANBERRA ACT 2601 The Hon Mark Dreyfus QC MP Parliamentary Secretary for Climate Change and Energy Efficiency Parliament House CANBERRA ACT 2600 Dear Mr Dreyfus The Domestic Offsets Integrity Committee has considered the following activity proposed for inclusion on the positive list under the Carbon Farming Initiative: Protection of native forest on freehold land where: a) local, State or Commonwealth legislation prohibits: (i) clearing without consent or (ii) harvest without prior approval of a harvest plan; and b) the landholder received consent to clear or harvest from the relevant local, State or Commonwealth regulatory authority before 1 July 2010; and c) the approval to harvest or clear does not require a vegetation offset to mitigate any impact from the action. The Committee considers that this proposed activity is suitable for inclusion on the positive list for the reasons provided in the Statement of Reasons. Yours sincerely AJ Press A/g Chair Domestic Offsets Integrity Committee 21 January 2013 STATEMENT OF REASONS The Domestic Offsets Integrity Committee considers that the following activity is suitable for inclusion on the positive list for the reasons outlined below. Protection of native forest on freehold land where: a) local, State or Commonwealth legislation prohibits: (i) clearing without consent or (ii) harvest without prior approval of a harvest plan; and b) the landholder received consent to clear or harvest from the relevant local, State or Commonwealth regulatory authority before 1 July 2010; and c) the approval to harvest or clear does not require a vegetation offset to mitigate any impact from the action. Clearing means the conversion of native forest to grassland, cropland or settlements. Grassland, cropland and settlements is defined in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Clearing consent means legislative approval to commence clearing issued by the relevant regulatory authority. Harvest plan means a plan prepared in accordance with the relevant legislation that identifies areas of native timber forest scheduled for harvesting, timing of harvest and estimated volumes to be harvested or other similar approval to harvest timber. Native forest means an area of land that: a) is dominated by trees that are located within their natural range; and have attained, or have the potential to attain, a crown cover of at least 20 per cent of the area of land; and have reached, or have the potential to reach, a height of at least 2 metres; and b) is not a forest established for harvest. Background This activity involves permanently protecting carbon stores in native forests. The activity is limited to areas of native forest on freehold land that are at imminent risk of being cleared or harvested. This can be demonstrated in circumstances where the landholder obtained consent to clear or approval of a harvest plan under state or territory legislation before 1 July 2010. This activity does not include the protection of forests that can be cleared or harvested without approval. This is because many Australian native forests that can lawfully be cleared or harvested are not at imminent risk because these activities would not be cost effective. Reasons for advice Prior to the commencement of the CFI, landholders are unlikely to have sought clearing or harvest consent unless they had a real intention to clear or harvest. The process of obtaining clearing or harvest approvals is time consuming and may involve substantial costs. Where clearing or harvesting consent has been granted, a decision to not proceed is likely to involve significant opportunity costs. For these reasons it is reasonable to assume that the number of landholders, who sought and received consent to clear before the commencement of the CFI and who are not proceeding with clearing, is unlikely to be common practice.