Deforesting forest land

If you deforest pre-1990 forest land that hasn't been granted an exemption or offset, you need to tell MPI. You also need to pay for any emissions you create through deforesting the land. Follow our step-by-step process to make sure you meet your obligations.

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 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.

Deforestation obligations when pre-1990 forest land is sold

When pre-1990 forest land is transferred after the land has been cleared, deforestation obligations depend on the land's status at the time of transfer.

If the land was:

  • deforested before the transfer date – the former land owner must meet the deforestation liability
  • transferred while temporarily unstocked – the new owner must meet the deforestation liability if they do not replant, or if 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, the land must have either:

  • been replanted with at least 500 stems a hectare of forest species
  • regenerated a cover of at least 500 stems a hectare of exotic forest species
  • 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, 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
  • indigenous forest species and be forest land.

20 years after clearing, the land must have:

  • predominantly indigenous forest species growing and at least 30% of trees 5 metres high.

From 1 January 2021, updates will be made to these requirements to make it clearer when land is considered deforested.

Follow the steps for deforesting pre-1990 forest land

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Step 1: Open a holding account
Create an account with the New Zealand Emission Trading Register (NZETR).

Carbon credits are called New Zealand Units (NZUs), and are stored and transferred through the New Zealand Emission Trading Register (NZETR). When you deforest pre-1990 forest land, you'll need to pay units to the government. To do this, you'll need an NZETR account. The account name must include the correct legal names of all individuals registered as participants.

Step 2: Notify MPI
You must tell MPI when you are deforesting pre-1990 forest.

Forest landowners (or third parties who have deforestation rights) who deforest pre-1990 forest land that hasn't been granted an exemption or been offset, must notify MPI within 20 working days of deforestation.

You'll need to complete a notification of deforestation form. You can submit your form online, or post it to us.

Online notification

To use MPI's ETS online transaction system, you must:

  • be registered with the government online identification service RealMe
  • set up a ETS online system login.

If you don't have a RealMe account, you'll be given the chance to set one up when you go to the ETS online system login.

Notify MPI by post

Step 3: Calculate emissions
Determine how much carbon has been released by deforesting your land.

Deforestation emissions are calculated based on a forest's carbon stocks at the time it is cleared.  Use the look-up tables to calculate this amount. A guide is available to help you use the tables.

Step 4: File an emissions return
Submit a return showing how many units you owe for deforestation.

The deforestation emissions return assesses how many NZUs you owe based on the amount of carbon released by deforesting your land. You must pay one unit for each tonne of carbon emissions. An emissions return must only cover a single calendar year.

You will need to attach a shapefile (an electronic file used in digital mapping) of the deforested land with your return.

Emissions returns must be submitted to MPI between 1 January and 31 March in the year immediately following deforestation.

Step 5: Pay units
Units must be paid by 31 May in the year immediately following deforestation.

Units must be paid to the government through your NZETR holding account.  The Environmental Protection Authority will tell you how to do this once your emissions return has been processed. 

Step 6: Tell MPI you are no longer in the ETS

Once deforestation is complete, you must tell MPI.

Once you have completed these steps and all deforestation is complete, you are no longer a participant in the ETS. You must deregister using the prescribed form.

Download the Pre-1990 participant deregistration form [PDF, 355 KB]

If you later deforest another area of pre-1990 forest land, you will need to re-register in the ETS, and follow the same process.

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.

When deforestation obligations don't apply

Find out about the exceptions to the deforestation rules.

When deforestation obligations don't apply

Who to contact

If you have questions about deforestation:

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