Large scale carbon forestry planting underway

PLANTING of more than 10,000 hectares of mallee eucalypt trees is now underway as part of one fo the largest carbon forestry projects in Australia.

A leading developer of carbon forestry projects, Carbon Conscious Limited, says thanks to timely rain, carbon forestry planting is now underway across the Australian wheatbelt.

Carbon Conscious says it has received a substantial increase in new client enquiries from organisations now facing major carbon liabilities under the Clean Energy Act 2011, as well as from New Zealand companies with liabilities under the New Zealand Emissions Trading Scheme (ETS).

In January Carbon Conscious released a profit guidance to the market of $3.5 million Net Profit After Tax and the company's chief executive officer, Peter Balsarini, says it remains "on track" to achieve this result.

"Carbon Conscious has received a client payment of approximately $5 million for planting commencement and will receive a further $5 million on completion of planting," Mr Balsarni said.

"Rainfall in key planting areas has expedited site preparation and more than 10 million seedlings provided by 7 local nurseries are scheduled for delivery over the next 8 to 10 weeks.”

In addition to the revenue received at the time of planting, Mr Balsarini said upon completion of this season’s planting, Carbon Conscious will have secured a substantial revenue stream for 15 years.

"At the completion of the 2012 planting program, Carbon Conscious will have approximately 19,000 hectares of plantings under management across Australia and New Zealand.

"Ongoing contract revenue associated with existing projects will exceed $43 million over the next 15 years.”

“We are seeing growing interest from a range of sources seeking our internationally compliant carbon credits.

"As more countries develop carbon pricing mechanisms, such as South Korea’s new cap-and-trade emissions trading scheme, there is increasing appetite for global carbon offset investments."