Skip to content
Last reviewed:

What is deforestation?

Deforestation has a specific definition in the Emissions Trading Scheme (ETS). Land is considered deforested when forest is cleared and:

  • the land has been converted and is no longer used for forestry, or
  • replanted or regenerated forest species don't meet certain criteria within set timeframes.

Deforestation: definition and obligations under the ETS [PDF, 235 KB]

Your obligations when deforesting pre-1990 forest land

You must follow the steps for deforesting when clearing pre-1990 forest land unless you:

  • meet the criteria below for stocking and growth thresholds, or
  • are deforesting only small areas of land (up to 2 hectares in any 5-year period commencing from 1 January 2008), or
  • are clearing land for best practice forest management (see section 179A(1)(a) of the Climate Change Response Act), or
  • have an exemption, or
  • MPI has approved your application for an equivalent forest (offsetting forest land) elsewhere.

Check when deforestation obligations don't apply

How to offset deforestation of pre-1990 forest

Deforestation obligations when pre-1990 forest land is sold

If pre-1990 forest land is deforested before it is transferred, the former land owner must meet the deforestation liability.

If pre-1990 forest land is transferred while it is temporarily unstocked, the new owner must meet the deforestation liability if:

  • they do not replant, or
  • the land does not regenerate as forest within set timeframes.

Stocking and growth thresholds

Forest land that has been cleared will be classified as deforested if it doesn't meet specific criteria 4, 10, and 20 years after clearance.

Four years after clearing

Four years after clearing, the land must have either:

  • at least 500 stems a hectare of exotic forest species growing
  • been replanted with at least 100 stems a hectare of willow or poplar species (used to manage soil erosion), or
  • predominantly regenerated indigenous forest species, growing at a rate that suggests the land is likely to be forest within 10 years.

Ten years after clearing

Ten years after clearing, the land must have:

  • predominantly exotic species growing, with a tree cover of at least 30% from trees with the potential to reach at least 5 metres high, or
  • predominantly indigenous forest species and be forest land.

20 years after clearing

20 years after clearing, the land must have predominantly indigenous forest species growing and at least 30% of trees 5 metres high.

Note that from 1 January 2021 these requirements have been updated to clarify when land is considered deforested.

Follow the steps for deforesting pre-1990 forest land

Expand all

How to request an emissions ruling

Emissions rulings provide an official determination on matters relating to the Emissions Trading Scheme (ETS). They are often used to check if land would be eligible for registration as post-1989 forest land if it was planted. This means that you can check eligibility before making the investment.

They can also be used to determine:

  • if pre-1990 deforestation would occur if an area of forest was cleared
  • how ETS regulations would apply in specific circumstances.

Emissions ruling application form and guide [PDF, 287 KB]

Emissions ruling fees

You need to pay a fee to apply for an emissions ruling. The amount of the fee is on the application form. The fee covers up to 4 hours of work on the application. If more time is needed to make a ruling, you will be charged more.

Processing time for emissions rulings

There is no set timeframe for Te Uru Rākau – New Zealand Forest Service to issue an emissions ruling outcome. It usually takes us between 4 and 8 months.

Your obligations when deforesting post-1989 forest land

If you're deforesting post-1989 forest land registered in the ETS, you must:

  • tell MPI by completing the relevant forms
  • pay any units owed
  • remove the deforested area from the ETS.

Adding or removing post-1989 forest land from the ETS

Penalties and offences

You may face a penalty, fine, or conviction if you:

  • don't file a mandatory emission return by the due date
  • have calculated emissions or removals incorrectly in your emissions return
  • are late paying units that you owe.

Te Uru Rākau – New Zealand Forest Service has published the following policy on how penalties are assessed when emissions returns are not submitted on time or contain incorrect information:

Emissions Trading Scheme operational policy: Assessing penalties for failing to correctly report emissions and removals [PDF, 260 KB]

The Environmental Protection Authority (EPA) also has guidance.

Guidance on penalties under the Climate Change Response Act 2002 – EPA [PDF, 742 KB]

 

Who to contact

If you have questions about deforestation:

MPI business units