Planning ETS forest land
If you are planning to establish or purchase a new forest, it’s a good idea to think about whether registering it into the Emissions Trading Scheme (ETS) could work for you. The ETS enables you to earn New Zealand Units (NZUs or units) for your carbon storage, but there are also responsibilities and risks to consider before you register.
Can you register, and what does it involve?
The ETS has a specific definition of forest land, and only some kinds of forest can join the scheme. Forest land is classified differently depending on when it was first established. The two main kinds of forest land in the ETS are post-1989 forest land and pre-1990 forest land. There are other eligibility criteria, including that the forest must be a certain size.
How forest land is defined in the ETS – Ministry for Primary Industries
Eligible post-1989 forest land can be registered in the ETS. If you want to register land in the ETS, you’ll need to understand how to apply and how to map the land. You need to map your forest land before applying to register it in the ETS, and when you do a range of things that add or remove land from your registration.
You need to tell MPI if you’re buying, selling, or transferring forest land that’s registered in the ETS.
You cannot earn units for pre-1990 forest land, but you may need to pay units if you deforest this land. You do not need to tell MPI if you’re buying or selling pre-1990 forest land, but you should be aware of your responsibilities in the ETS if you deforest this land.
Read more about deforesting pre-1990 land – Ministry for Primary Industries
Can you register native regenerative forest in the ETS?
The same rules apply to native regenerative forest as other forest types in the ETS.
There are things you need to consider when planning to if you want to register the forest land in the ETS. Find out more in this guide:
Native forest reversion and the Emissions Trading Scheme (ETS) — Guide
Is the Emissions Trading Scheme right for you?
There are benefits to registering your land in the Emissions Trading Scheme (ETS), but there are also obligations and risks for you to consider. Find out what to think about before you join the scheme.