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We’re looking for better ways to measure and reward carbon storage

The Maximising Forest Carbon programme aims to improve the way we measure, recognise, and reward carbon storage in our native and exotic forests.

Our forests play an important role in reducing the effects of climate change. One way they do this is by absorbing carbon dioxide. In New Zealand, the Emissions Trading Scheme (ETS) is the Government’s main tool for reducing carbon dioxide and other greenhouse gas emissions.

This programme could lead to changes in the ETS to improve the way carbon storage in small and large forests is measured and rewarded. It could also help us with our emissions reduction targets. For example, the programme is exploring whether carbon storage resulting from forest management activities can be measured in older forests. This may encourage more effective forest management, leading to more carbon storage in our existing forests.

How the ETS applies to forestry

Projects in the programme

Some of the projects we’re working on are:

  • updating the default carbon tables in the ETS
  • exploring faster and easier ways to measure forest carbon in the ETS
  • exploring how managing pre-1990 forests can increase carbon.

The programme’s research will contribute to all 3 projects. This research aims to:

  • understand more about carbon storage in New Zealand’s forests
  • improve the way we measure carbon storage in forests
  • understand how forest management activities affect forest carbon storage
  • predict future changes in forest carbon storage due to climate change.

Maximising Forest Carbon: Research plan summary [PDF, 289 KB]

Updating the default carbon tables in the ETS

Most forestry participants in the ETS use default carbon tables to work out how much carbon their forests store.

The current default carbon tables were developed around 2008 using the data available at the time. They have not been meaningfully updated since. They only cover a few broad forest types and don’t recognise the diversity of carbon storage across forest types or locations.

Default carbon tables in the ETS

What we've done so far

So far, the programme’s research has investigated carbon storage in exotic forests and has made good progress investigating carbon storage in native forests. This research will to help improve the default carbon tables. This includes research on: 

  • exotic softwoods such as cypresses, redwoods and pines
  • exotic hardwoods such as eucalypts, poplars and willows
  • naturally regenerating, planted and plantation native forests.

Earlier in 2025, we consulted on updates to the exotic softwoods, exotic hardwoods, and Pinus radiata default tables, as well as a new redwood forest type and default carbon tables.

Find out about the consultation and the submissions we received

Next steps

We are considering the feedback from the consultation on proposed changes to the default carbon tables for exotic forests. If a decision is made to progress with the changes, they will be in place in late 2026 for use in the next mandatory emissions return period.

Our research into native forests is in progress and will continue until the end of 2025. Any changes we propose to the indigenous default carbon tables will depend on what our research tells us. We will consult the public before making any changes to the indigenous default carbon tables.

Exploring faster and easier ways to measure forest carbon in the ETS

Large ETS forestry participants must regularly measure plots in their forests using a manual method to work out their carbon storage. The amount of carbon is then calculated using carbon tables that are developed specifically for that forest. This method of measuring forest carbon is called the Field Measurement Approach (FMA).

The FMA was developed around 2010, before modern remote sensing technology was readily available. It is reasonably accurate but expensive, and you usually need specialist help to do it. It has not been meaningfully reviewed or updated since.

Read more about measuring forests to get participant-specific tables

Modern remote sensing technology such as LiDAR (Light Detection and Ranging) and spectral imaging could improve the way we measure carbon in forests. It could make these measurements faster, more cost-effective, and more accessible.

Our research will help us see:

  • how effective remote sensing technology is at measuring forest carbon
  • what barriers to adoption there are, and
  • whether it could be used for forestry in the ETS.

What we’ve done so far

So far, we have completed field trials testing whether data collected for the FMA could be done with LiDAR. More field trials testing LiDAR and other remote sensing tools for measuring carbon across a whole forest are underway. We have also investigated how remote sensing tools are being used in New Zealand and overseas for measuring carbon.

Next steps

Our research into forest carbon measurement methods is in progress.

We will hold focus groups with the forestry sector later in 2025 to improve our understanding in 2 main areas:

  1. How the FMA is operating in practice, including opportunities to improve it
  2. What the future for measuring forest carbon in the ETS could look like.

This information will inform broader engagement with the forestry sector in 2026 on the opportunities to improve forest carbon measurement and ways to achieve it.

Exploring how managing pre-1990 forests can increase carbon

The ETS defines forest land in a certain way, as pre-1990 forest land and post-1989 forest land.

Carbon storage in pre-1990 forests does not currently count towards New Zealand’s emissions reduction targets. This could change. The Paris Agreement now lets us count extra carbon that pre-1990 forests store as a result of forest management towards our international targets.

Forest management activities, such as controlling browsing animals and silviculture, could increase the carbon pre-1990 forests store. The programme aims to carry out foundational research to test if we can confirm this link and measure it. We could then look into recognising and rewarding pre-1990 foresters for good forest management. Our research on carbon storage in pre-1990 forests is underway. 

Read more about how forest land is defined in the ETS

Consultations and decision papers

In April and May 2025, we consulted on proposed changes to the default carbon tables for exotic forests.

Proposed updates to forest types and default carbon tables for exotic forests in the NZ Emissions Trading Scheme and other regulatory amendments

In October 2023, we consulted on potential updates to the exotic hardwoods default carbon table and a potential new space planted (widely planted) poplars and willows forest type.

Recognising space-plantings and exotic hardwoods in the New Zealand Emissions Trading Scheme

Published research on carbon storage and measurement

Here are links to research reports from the programme so far.

Research relating to the default tables

Research relating to carbon measurement methods

Research relating to carbon storage in New Zealand forests

Research relating to carbon measurement and accounting

Other maximising carbon initiatives

The programme outlined on this page is part of a cross-government initiative called Maximising Carbon Storage. This work programme explores how New Zealand can maximise the natural storage of carbon in different ways.

Te Uru Rākau – New Zealand Forest Service is leading the Maximising Forest Carbon programme, with support from the Ministry for the Environment (MfE) and the Department of Conservation (DOC).  

The Department of Conservation leads the Maximising Carbon in Native Systems programme.

Carbon storage in native ecosystems – Department for Conservation

The Ministry for the Environment leads the Maximising Carbon in Soils programme.

Maximising carbon in soils research – Ministry for the Environment

Who to contact

If you have any questions, email info@mpi.govt.nz

 

 

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