Major barrier removed to unlock Australian forestry investment

Friday 7 Jun 2024

After a long campaign by the Australian Forest Products Association (AFPA), Australia’s forest industry can now celebrate the removal of the ‘water rule’ that for years has deterred new timber plantings participating in the Emissions Reduction Fund (ERF), AFPA Chief Executive Officer, Diana Hallam said today.

As of 1 June 2024, the water rule that had added conditions that plantation forestry needed to meet to participate in the Australian Carbon Credit Unit (ACCU) Scheme has been removed.

“This week is a great week for Australia’s forestry industry. The removal of the water rule means plantation and farm forestry projects will now be treated the same as other carbon methods and not excluded from many areas that are suitable for tree planting. The removal of the water rule will now enable farmers in many areas to invest in trees, diversify their income and create market options to help them achieve net zero,” Diana Hallam said.

“It’s a Berlin Wall sized barrier coming down that for years has hindered new investment in much needed timber trees. The removal of these restrictions nationally is great news because Australia desperately needs new production tree plantings to grow future timber and wood fibre supply and decarbonise the economy.

“Just last month, AFPA released How Timber Can Help Solve Australia’s Housing Crisis, a plan for how our sector can help supply the timber to build 50,000 much needed new homes, to help solve Australia’s housing crisis. The removal of the water rule is one very important cog in the wheel of success towards this goal.

“We thank the Albanese Government, in particular Ministers Murray Watt, Chris Bowen and Tanya Plibersek, for honouring its 2022 election commitment to remove the water rule, as well as the Coalition for taking the same policy to the election. This recognition and bipartisan support for industry investment is very important for our sector.

“AFPA will continue to work with Minister Watt and the rest of the Government on how to leverage the removal of the water rule, including through the plantation establishment grants and other policies relevant to boosting the forestry sector,” Diana Hallam concluded.

Source: The Australian Forest Products Association (AFPA)

Share |

Copyright 2004-2024 © Innovatek Ltd. All rights reserved.