On this page
- Forest carbon and New Zealand Units
- Make sure joining the ETS makes financial sense for you
- Make sure your forest is eligible before applying
- Processing applications to register in the ETS can take time
- When responsibility for land in the ETS changes
- Damage to forest land during natural events
- Participating in the carbon market
The information on this web page covers some of the things you should consider before joining the ETS for forestry. It is not a comprehensive list. If you aren’t familiar with the ETS, it’s a good idea to hire a relevant expert or consultant to advise you. They can also manage certain tasks for you if you decide to join the ETS and appoint them as your representative.
You may be thinking about registering your forest in the ETS or have recently registered. If you register eligible forest in the ETS (known as “post-1989 forest land”), you could receive New Zealand Units (NZUs or units).
Once you receive these units, you have options. You could hold onto them. You could decide to sell them. This may be what attracted you to the scheme in the first place.
However, be aware there are conditions attached when you receive these units. The units received are based on the amount of carbon that is stored in the forest over time. If you deliberately reduce the carbon in this forest (for example through deforestation), there are ETS rules you’ll need to follow. You may need to give units back to the government (known as “surrendering” units).
Before you register an eligible forest in the ETS, make sure that joining the scheme makes financial sense for you. There’s a risk that it may not be cost-effective to register, depending on your circumstances. Some forest owners receive enough units to make it worthwhile to register their land in the ETS. Others don’t.