Turn the raw legal text into a practical explanation grounded in Carbon Credits (Carbon Farming Initiative—Plantation Forestry) Methodology Determination 2022.
(1) The following, which may apply whether or not there is plantation forest on the land at the eligibility date, constitutes the permanent planting project activity A for this determination:
(a) planting, seeding or coppicing as necessary to establish the land as a permanent planting with a stocking density of at least 200 stems per hectare; and
(b) maintaining the permanent planting.
Note: Planting, seeding or coppicing may not be necessary on areas of remnant plantation forest.
(2) The following, which may apply only if there was plantation forest on the land at the eligibility date, constitutes the permanent planting project activity B for this determination:
(a) maintaining the plantation for a period; and
(b) conducting, before the end of the crediting period for the project, a clearfell, with or without harvest; and
(c) planting, seeding or coppicing as necessary to establish the land as an environmental planting with a stocking density of at least 200 stems per hectare; and
(d) maintaining the environmental planting as a permanent planting.
2 Eligible land for permanent planting project activity
(1) For this determination, land in the project area is eligible land for the permanent planting project activity A if, on the eligibility date:
(a) it satisfies a plantation forest requirement in clause 3; and
(c) it satisfies the native forest requirement in clause 5.
(2) For this determination, land in the project area is eligible land for the permanent planting project activity B if, on the eligibility date:
(a) it satisfies the first plantation forest requirement in clause 3; and
(c) it satisfies the native forest requirement in clause 5.
(1) The first plantation forest requirement is that there is plantation forest on the land.
(2) The second plantation forest requirement is that there was plantation forest on the land within the previous 7 years.
(3) The third plantation forest requirement is that, in the 7 years before the eligibility date:
(a) there had previously been plantation forest on the land; and
(b) the plantation had ceased to satisfy paragraph (e) of the definition of plantation forest; and
(c) there had been no other use of the land since the plantation ceased to satisfy that paragraph.
Note: Paragraph (e) of the definition of plantation forest requires the land to be managed in a way consistent with an intention to maintain a plantation forest.
4 Non-continuation requirements
(1) The first non-continuation requirement, which may apply if:
(a) the land satisfies the first plantation forest requirement; and
is that if the land were not part of the project, it would be converted to a viable non-forested land use within 24 months.
(2) The second non-continuation requirement, which may apply if:
(a) the land satisfies the second or third plantation forest requirement; and
is that if the land were not part of the project, forest would not be re-established on the land.
(3) The third non-continuation requirement, which may apply if:
(a) the land satisfies the first, second or third plantation forest requirement; and
(b) there has been a change in the ownership of the land in the previous 12 months;
is that the new owner made the change with the intention of changing the land use of the project relative to the previous owners or tenants.
(4) The fourth non-continuation requirement, which may apply in any case, is that:
(a) the land is unable to be continued as, or to be replanted and used as a plantation forest as a result of a Federal, State or Territory government regulation; and
(b) an environmental planting is permitted to be planted but not required to be planted on that land; and
(c) the land is unlikely to regenerate to forest cover.
(5) For this clause:
(a) a reference to a change in ownership includes a change in tenancy where the duration of the new lessee has a lease whose duration is no less than the project’s permanence period; and
(b) a reference to the new owner includes a reference to the new lessee in the case covered by paragraph (a).
The native forest requirement is that the land:
(a) has not, within the previous seven years, been cleared of native forest; and
(b) native forest would not need to be cleared for a project to be conducted.
(1) For paragraph 10(3)(c) of this determination, if the first, second or third non-continuation requirement is relied on, the evidence to be provided must include:
(a) a declaration by the chief executive officer or chief financial officer (however described) of the project proponent declaring that the land satisfies the relevant requirement; and
(b) if the first or second non-continuation requirement is relied on—a statement detailing how the requirement is satisfied, including an explanation of:
(i) why the land will be converted to a viable non-forest land use within 24 months or forest would not be re-established on the land, as applicable; and
(ii) the land use that would apply to the land if it were not part of the project; and
(iii) how financial and other broader strategic considerations have influenced subparagraphs (i) and (ii); and
(c) if the third non-continuation requirement is relied on—a statement detailing how the requirement is satisfied, including an explanation of:
(i) how the new owner intends to change the land use relative to the previous owner or tenant; and
(ii) how financial and other broader strategic considerations have influenced subparagraph (i); and
(d) if the fourth non-continuation requirement is relied on:
(i) a letter from a State or Territory government agency confirming the circumstances set out in paragraph 4(4)(c) of this Schedule; and
(ii) a statement detailing why the requirement in paragraph 4(4)(c) is met.
(2) The statement and declaration must be informed by a financial assessment prepared or reviewed by a qualified independent person within 12 months of the relevant application, which is also attached to the statement, that:
(a) demonstrates that in the absence of the scheme, the plantation forest is likely to convert to a feasible non-forest land use that is financially attractive relative to continuing the plantation; and
(b) demonstrates that with projected revenue from Australian carbon credit units and harvesting, the proponent expects to receive enough revenue to continue the permanent planting project activity for the entirety of the permanence period; and
(c) is informed by a discounted cash flow analysis of continuing the plantation that extends for at least 25 years; and
(d) if the first or second non-continuation requirement is relied on—is informed by a land valuation made by a qualified independent valuer within 12 months of the relevant application, which is also attached to the statement; and
(e) if the third non-continuation requirement is relied on—is informed by the sale price or cost of the lease, which is also attached to the statement.
(3) For this clause, a person is a qualified independent person if they:
(a) hold qualifications, determined by the Regulator to be necessary to hold, to prepare or review a financial assessment for subclause (2); and
Note: A person does not have a financial interest in the project merely because they are being paid to prepare or review the financial assessment.
(4) For paragraph (2)(d), a person is a qualified independent valuer if they:
(a) hold qualifications, determined by the Regulator to be necessary to hold, to prepare land valuations for paragraph (2)(d); and
Note: A person does not have a financial interest in the project merely because they are being paid to prepare a land valuation.
7 Additional requirements for defining ex-plantation CEAs
(1) An ex-plantation CEA must be defined for the offsets report relating to the first reporting period after the eligibility date.
(2) Subclause (1) does not apply in relation to a CEA created by re-stratification of an existing CEA.