Carbon credits - reliable cash flow?

Abstract

On 27 March 2008, my wife Emily and I purchased a 737 ha property adjoining Castlepoint Station, called Mockingbird Farm. The property is typical of Wairarapa hill country ranging from small amounts of rolling hill to steep hills with about 407 ha of reverting scrub, 200 ha of average pasture and 130 ha of pine trees. This paper covers the decision process we went through in deciding to purchase the property. A key component of that decision was the ability to sell carbon credits from the pine trees to meet the carrying costs of the purchase. The paper also outlines the process we have been through attempting to sell carbon credits, and the minefield of political whim which surrounds this. The end result is that over a year later we have yet to sell any carbon credits.