The New South Wales Government has recently announced a target of reducing the state’s emissions by 50 per cent by 2030 on 2005 levels. Meeting this target while driving increased prosperity requires the realisation of the cheapest sources of abatement.
Consistent with this commitment, there is an opportunity to expand the role of forests in NSW’s climate strategy by stopping logging in state forests.
Frontier Economics and Professor Andrew Macintosh of The Australian National University College of Law have prepared a report that looks at the climate and economic outcomes of this strategy, based on a case study in the southern forests of NSW, covering the Southern and Eden Regional Forest Agreement (RFA) areas.
Based on conservative assumptions, the study found stopping native forestry in the Southern and Eden RFA areas would produce a net economic benefit to the state of approximately $60 million, while also reducing net greenhouse gas emissions by almost 1 million tonnes (Mt) per year over the period 2022-2041.
"Given the nature of the products that they produce, there's likely to be similar dynamics, and also benefits, from stopping harvesting, particularly on the greenhouse gas emissions side," Professor Macintosh told the AAP.
He said more subsidies and "patient capital" were needed for investing in new hardwood plantations.
"It's worthwhile looking at trying to promote another way of investment in plantations to help substitute out of native forestry and to provide the incentives people need."
Read the report: 'Comparing the value of alternative uses of native forests in Southern NSW'.