Online ETS transactions will be unavailable from between 2-5pm on Friday
24th February.
We apologise for the inconvenience.
For Forestry Emissions Trading Scheme information and queries, call 0800 CLIMATE (254628).
The Emissions Trading Scheme (ETS) is the price-based mechanism established by Parliament to:
The comprehensive scheme is a key part of overall climate change policy and involves all significant greenhouse gases and all sectors including forestry, agriculture, industry, energy, waste and liquid fossil fuels.
Forestry was the first sector to enter the ETS, effective 1 January 2008, because of its potential to remove and store carbon emissions from other sectors.
The ETS classifies forests differently depending on whether they were first established after 1989 (post-1989 forest land) or before 1990 (pre-1990 forest land), largely mirroring the rules under the Kyoto Protocol.
What is forest land under the ETS?
Under the ETS, forest land is defined as being at least 1 hectare with forest species that has, or is likely to have tree crown cover of more than 30% on each hectare. Forest land does not include land that has, or is likely to have tree crown cover with an average width of less than 30 metres.
Forest species are trees capable of reaching five metres in height at maturity in the place they are growing, excluding tree species grown primarily for the production of fruit and nut crops.
Post-1989 forest land
Post-1989 forest land is land that was established in forest after 31 December 1989. Land that was in forest before this date, but was deforested between 1 January 1990 and 31 December 2007 is also eligible.
Post-1989 land can be exotic or indigenous species, providing it meets the forest land requirements.
Owners of post-1989 forest land, and those with rights to post-1989 forests can voluntarily enter the ETS and earn New Zealand Units (NZUs) as their forests grow. Alternatively, they can enter the complementary scheme, the Permanent Forest Sink Initiative (PFSI).
The Government retains responsibility for the credits and liabilities of post-1989 forests whose owners do not join the ETS or the PFSI. Post-1989 forest land voluntary participation: Earning NZUs.
Pre-1990 forest land
Pre-1990 forest is land that was in forest on 31 December 1989 and remained in predominantly exotic forest on 31 December 2007.
Old-growth indigenous forest is not subject to the rules of the ETS, and therefore not pre-1990 forest.
Under the ETS, owners of pre-1990 forest land will be required to surrender NZUs if they deforest. Deforestation is clearance of more than 2 hectares of forest land in each five-year commitment period from 1 January 2008, followed by:
- a change in land use out of forestry e.g. into dairy farming, or
- the forest species not reaching specified thresholds.
Pre-1990 forest owners do not receive NZUs as their forest grows, but the Government made available a one-off opportunity for an allocation of NZUs or an exemption to the deforestation rules of the ETS. Pre-1990 forest land: Allocations and exemptions.
Additional Resources
Introduction to Forestry in the Emissions Trading Scheme provides an introduction to the key concepts of forestry in the Emissions Trading Scheme. More detailed information is provided in A Guide to Forestry in the Emissions Trading Scheme. If you are involved in land transactions you should be aware of the implications that the Emissions Trading Scheme (ETS) may have for land that is or was forest land. Forest Land Transactions in the Emissions Trading Scheme provides a summary of the effect of the ETS on land classified under the scheme as pre-1990 or post-1989 forest land.
View a full list of Forestry in the ETS publications.
View a timeline of key dates for forestry in the ETS.
Forestry and the ETS Factsheets
Subscribe to Sustainable Forestry Bulletin to receive updates on carbon forestry, and forestry in the Emissions Trading Scheme.
Forestry and the Emissions Trading Scheme contacts list.
View Forestry and in ETS glossary
Other Sustainable Forestry Initiatives
MAF administers a range of grant schemes and initiatives intended to promote sustainable development within rural communities and to assist in times of need.