Forestry’s Obligations: Surrendering NZUs for Deforestation

Who is involved?

Under the Emissions Trading Scheme (ETS), owners of pre-1990 forest land will be required to surrender New Zealand Units (NZUs) if they ‘deforest’ – that is, if they clear more than two hectares between 2008-2012 and introduce a new land use, such as agriculture.

‘Pre-1990 forests’ are areas that were forested as at 31 December 1989 and remained forested on 31 December 2007.

What activities does the ETS cover?

Deforestation obligations for pre-1990 forests apply only to exotic forests, not indigenous forests. Pre-1990 forest landowners do not face any obligations to surrender NZUs if they harvest the trees, as long as the land is replanted or regenerates into forest.

Deforestation of up to two hectares is permitted.

The following exemptions from the deforestation obligations of the ETS will be available for pre-1990 forests:

  • Forests where the landowner had total holdings of less than 50 hectares of pre-1990 forest land on 1 September 2007.
  • Deforestation of land with specified tree weeds.

In both cases, forest owners need to apply for the exemption (if eligible).

Transition period 1 January 2008 – 31 December 2012

During the ETS transition period from 1 January 2008 to 31 December 2012 forestry participants have the option of paying a fixed price of $25 per NZU to meet their obligations for harvesting or deforestation under the scheme.

How to participate

Please visit Forestry in an Emissions Trading Scheme (Ministry of Agriculture and Forestry website) for more information.

Last updated: 16 December 2011