The innovative leasing deal creates new income streams and unlocks multi-million-dollar earnings.

Ngaporo Waimarino Forest Trust, based in the Ruapehu district, has struck a 10-year carbon credit leasing arrangement with forestry developer Tamata Hauha.

The deal leases secured carbon credits from just under half of the Trust’s forests in the Waimarino, Raetihi and Manganui-o-te-Ao area to Tamata Hauha, which then on-sells the credits through the Emissions Trading Scheme.

Trust chair Tawhiao McMaster said this type of leasing deal was the first of its kind in the country, but other land trusts were now also taking up the opportunity.

McMaster said the same number of credits or the financial equivalent (whichever is greater) would return to the Trust at the end of the 10-year arrangement.

The deal will earn the Trust about $9.3 million in annual payments of around $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 Ltd, a subsidiary company owned by Ernslaw One, grows exotic timber forest on 38 blocks leased from the Trust.

“We’ve already got the forest. 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,” McMaster said.

Tamata Hauha is leasing the credits to cover its own carbon 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 own forests to sequestrate carbon.

Ngaporo Waimarino Forest Trust was established in 1973 with its first vested block, Waimarino A17.

It is now responsible for 43 Maori 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 ahika (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 did produce 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 putea (income) to do that,” McMaster told Local Democracy Reporting.

The Trust meets with owners and whanau in Raetihi on Saturday to present plans on what it will do with the windfall, including growing the Trust and distributing benefits.

“We have some proposals, and we’re open to owner and whanau 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 kaumatua wellbeing and supporting whanau in projects that connect with their whenua, whakapapa and Reo Maori.

It will take busloads of beneficiaries on Saturday from Whanganui and Raetihi to visit reserves, including wāhi taonga and wahi tapu between Raetihi and Pipiriki, and some of the key land blocks under Ernslaw One management.

The Trust also plans to establish annual mokopapa – wananga 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 korero from our region and wananga the type of moko that will be uniquely given to our people, incorporating aspects of their own whakapapa, matauranga and mahinga.”

LDR is local body journalism co-funded by RNZ and NZ On Air