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MEDIA RELEASE: 04 February 2010
Carbon transaction supports environmental benefits to Lake Taupo
Mighty River Power and Puketapu 3A Incorporation today announced they have signed a long term carbon supply agreement, as part of a strategy that will deliver significant benefits for the water quality and environmental health of Lake Taupo and the Waikato River.
Puketapu 3A Incorporation is converting part of the farmland that it owns around Lake Taupo into forest as part of a nitrate reduction agreement with Lake Taupo Protection Trust, whose objective is to improve water quality by reducing nitrate flows into the lake.
Mighty River Power will purchase carbon credits earned by Puketapu 3A Incorporation through the land conversion process under the recently legislated Emissions Trading Scheme. The carbon trading component is crucial to ensuring that the planting of forests on lake shore land is financially feasible.
The unique approach – establishing both nitrogen and carbon agreements with each land owner – is a first in New Zealand. Lake Taupo Protection Trust Chairman John Kneebone says that he is delighted with the arrangement, which will achieve the diverse goals of each organisation and – most importantly – will help preserve the pristine water quality of New Zealand’s largest lake.
“Lake Taupo is one of New Zealand’s national treasures. Although it is still very clean by international standards, it needs to be protected for the long term. These agreements represent a commitment by all parties involved to protecting Lake Taupo’s water quality” said Mr Kneebone.
Fraser Whineray, Mighty River Power’s General Manager of Generation, says that as the operator of the Waikato Hydro System, the company is firmly committed to protecting the water quality of Lake Taupo – the major source of water for the Waikato River – for future generations.
“This groundbreaking agreement is a win for everyone involved and reflects the multiple objectives of the Government regarding water quality, emissions trading and renewable energy” says Mr Whineray.
“In addition to the far-reaching environmental benefits for Lake Taupo and the broader Waikato Catchment, it helps to address New Zealand’s carbon emission obligations with an innovative and totally domestic solution – that’s an ideal outcome as far as we’re concerned.”
ENDS
Background information
Lake Taupo Protection Trust is an environmental body whose remit is to reduce nitrate flows into Lake Taupo. The trust is driving the strategy for conversion of lakeshore land from farming to low Nitrogen uses including forestry. The Trust is supported and funded by Taupo District Council, Environment Waikato and Ministry of Environment and works closely with Ngati Tuwharetoa to protect the Lake.
Contact: Graeme Fleming, CEO. 021 846 996
www.laketaupoprotectiontrust.org.nz
Mighty River Power is an integrated energy generator, trader, retailer and metering business. The company owns and operates a diverse and expanding portfolio of generation assets including the Waikato Hydro System, geothermal stations in the Taupo region and at Kawerau, Southdown Co-generation station and wind interests.
www.mightyriverpower.co.nz
Puketapu 3A Incorporation is a Maori Incorporation that currently farms approximately 2,400 hectares of pastoral land in the upper Kuratau sub-catchment. The establishment of a forest on the land meets the economic, cultural, social and environmental objectives of the landowners.