Buddle Findlay provided advice on the establishment of Drylandcarbon which is a carbon farming afforestation partnership of four NZX listed companies – Air New Zealand, Contact Energy, Genesis Energy and Z Energy. Drylandcarbon was formed in 2019 in response to an escalating requirement for emissions reduction, environmental improvement and forestry investment. It has established a geographically diversified portfolio of forests for both timber and carbon credits to meet their compliance surrender obligations under the NZ Emissions Trading Scheme. It has planted approximately 10,000 hectares of steeper, economically marginal farmland that it has either purchased or entered into a joint venture with a landowner. Drylandcarbon manages its forestry portfolio on an ongoing basis to ensure the generation of high-quality carbon and timber outcomes.
Our role
We have advised from the outset of this unique partnership, from structuring and establishment, to regulatory matters, land acquisition, joint ventures and other commercial arrangements. We advise Drylandcarbon on all property aspects relating to implementation, including:
- Preparing and negotiating heavily modified versions of 'ADLS' agreements for a significant number of acquisitions to reflect the bespoke nature of the property transactions, including addressing matters relating to the Overseas Investment Act 2005 and the acquisition of New Zealand Units
- Carrying out extensive due diligence attendances
- Advising on the New Zealand Emissions Trading Scheme and Climate Change Response Act 2002
- Preparing and negotiating forestry right agreements and grazing leases
- Conveyancing and subdivision attendances, including the grant and registration of easements, covenants and forestry rights.