Trust chair Tāwhiao McMaster said this type of leasing deal was the first of its kind in New Zealand, but other land trusts were now taking up the opportunity.
The same number of credits or the financial equivalent (whichever was greater) would return to the trust at the end of the 10-year arrangement, he said.
The deal would earn the trust about $9.3 million in annual payments of about $930,000.
“It’s a no-lose deal for beneficiaries,” McMaster said.
“We’ve leased out credits that will come back to our people and created a pool of income that won’t see any negative loss.
“Whatever the credits are worth at the end of 10 years, we’ve already benefited from them.”
The arrangement creates two key sources of income for the trust from the same forestry blocks.
Waimarino Forests, a subsidiary company owned by Ernslaw One, grows exotic timber on 38 blocks leased from the trust.
“We’ve already got the forest,” McMaster said. “It is already producing with Ernslaw One. We’ve got the credits. We just had to figure out a way to profit from the credits without selling them.”
Tāmata Hauhā is leasing the credits to cover its forestry blocks, which are growing but have yet to produce carbon units for the Emissions Trading Scheme.
The deal means the company can participate in the scheme without having to wait for its forests to sequester carbon.
Ngāporo Waimarino Forest Trust was established in 1973 with its first vested block, Waimarino A17.
It is now responsible for 43 Māori land blocks covering 6937 hectares (17,134 acres), mostly around the isolated Manganui-o-te-Ao River.
Some of the land is leased for forestry to Ernslaw One and other land is managed by the trust for ahikā (ancestral, tribal) use and kaitiakitanga (stewardship) purposes.
About 70% of the trust’s forests are in production.
McMaster said its native reserves and some forestry blocks had not been included in the arrangement. Although they produced carbon credits, that land had been set aside for other schemes, including conservation and biodiversity protection.
“Prior to this carbon leasing arrangement, we didn’t have the growth amount of pūtea [income] to do that,” he told Local Democracy Reporting.
The trust will meet its owners and whānau in Raetihi tomorrow to present plans on what to do with the windfall, including growing the trust and distributing benefits.
“We have some proposals, and we’re open to owner and whānau feedback,” McMaster said.
“The first year of the carbon credit leasing arrangement has been paid, and the trust has strategised, planned and scoped specific works for the trust’s benefit and further financial growth.”
The plans include increasing the number and reach of grants and scholarships for beneficiaries, strengthening uri (descendant) connection with the whenua, and supporting cultural revitalisation.
The trust has already doubled its grants and scholarships, extending support for academic, cultural and sporting activities with new grants for kaumātua wellbeing and supporting whānau in projects that connect with their whenua, whakapapa and te reo.
It will take busloads of beneficiaries from Whanganui and Raetihi tomorrow to visit reserves, including wāhi taonga and wāhi tapu between Raetihi and Pipiriki, and some of the key land blocks under Ernslaw One management.
The trust also plans to establish annual mokopapa – wānanga at which uri will prepare for and receive moko kauae and mataora (facial moko).
“Moko is instrumental to cultural revitalisation,” McMaster said.
“The intent is that uri will be able to engage in up to four wānanga with our moko artists. They will hear moko kōrero from our region and wānanga the type of moko that will be uniquely given to our people, incorporating aspects of their own whakapapa, mātauranga and mahinga.”
LDR is local body journalism co-funded by RNZ and NZ On Air
