On this page
Things to consider before you apply
Before you submit an application to register in the ETS, make sure:
- you understand the implications for you or your organisation
- your land is eligible
- you understand the differences between post-1989 forest land standard forestry and permanent forestry, and how you earn and pay units for these
- it would be cost-effective for you to join the ETS, and if the number of units you would receive would make it worthwhile
- you understand what liabilities you might face if you decide to leave the scheme
- you seek professional advice if it is needed.
These topics are explained below on this web page, with links to other relevant information.
Your responsibilities if you register in the ETS
If you register in the ETS, you'll have some responsibilities. People and organisations registered in the ETS are known as "ETS participants" under the law. They must, for example:
- report the amount of carbon in forest land in emissions returns at certain times
- keep records of their forest management
- keep records of any calculations of the amount of carbon gained or lost in the forest
- tell us if the situation changes, for example, if there is a change in who owns the forest.
You will need to pay an annual charge per hectare of post-1989 forest land you have in the ETS. If you have carbon accounting areas that mostly contain native forest younger than 6 years old, you can request for these areas to be excluded from the annual charge.
Find out more about the annual charge and other fees
If you register and then don't meet your ETS responsibilities, you may receive a penalty or an infringement notice and fee.
You may also be prosecuted. If you are convicted of a criminal offence, you could be liable to pay a fine or face imprisonment.
Read about penalties in the ETS and how to avoid them
Your responsibilities when land enters the ETS
Before you apply, make sure the land is eligible
If you plan to apply to register in the ETS with post-1989 forest land, make sure your land is eligible. There are 2 aspects of land eligibility to consider.
- Requirements that define "forest land" in the ETS based on its species, size, crown cover, and proximity to other forest in the application.
- Rules that decide what sort of ETS forest land it is – based on when it was planted or established and what was on the land before.
If you can't work out if you have eligible post-1989 forest land, you could:
- consider hiring and asking a consultant for advice
- apply for an emissions ruling about your forest land eligibility.
Find out about eligible post-1989 forest land
How to request an emissions ruling
Decide whether the post-1989 forest land will enter the ETS as standard or permanent forestry
From 1 January 2023, you can decide whether your post-1989 forest land will enter the ETS as:
- standard forestry
- permanent forestry.
Standard forestry
If you register and the post-1989 forest land enters the ETS as standard forestry:
- you’ll earn and pay (surrender) New Zealand Units (NZUs, units) based on averaging accounting in your emissions returns
- because the forest land enters the ETS under averaging accounting, you’ll only earn units during the first rotation of your forest until the ETS-specified average age of the forest
- under averaging accounting, there are specific rules for determining what is the first rotation of forest land in the ETS
- there are no restrictions on harvesting if you replant the forest so that the land isn’t considered deforested under ETS rules
- you can remove the land from the ETS at any time, although you must pay (surrender) any units received for the land if you do.
Find out more about earning units under averaging accounting
Definition of "first rotation" for a forest that enters the ETS under averaging accounting
Permanent forestry
If you register and the post-1989 forest land enters the ETS as permanent forestry:
- you’ll earn and pay (surrender) units based on stock change accounting in your emissions returns – these units are tagged to show that they come from this kind of forest
- limited selective harvesting of permanent forests is allowed without penalty - more than 30% tree crown cover must remain in each hectare of forest.
For 50 years, you can only remove areas of permanent forestry from the ETS:
- with approval from the Minister of Climate Change who must be satisfied certain conditions are met, or
- if a natural event permanently damages the land so that you cannot re-establish forest land, or
- if exempted under secondary legislation by Order in Council, or
- by deforesting the land, paying (surrendering) units for the deforestation, and accepting the clear-fell penalties.
After 50 years in the ETS, you’ll have some options. You can choose to keep the land in the ETS as standard or permanent forestry, or remove the land from the ETS completely.
Find out more about permanent forestry in the ETS
Learn about earning and paying (surrendering) units under stock change accounting
Preparing your application to register in the ETS
There is some preparation involved in applying to register in the ETS. This section explains what's needed.
You can choose to appoint a representative to apply to register on your behalf. Representatives can advise you about ETS rules and help with your decision-making. They can also help with other ETS applications and other ETS responsibilities.
Find out about appointing a representative in the ETS and what they can do on your behalf
Video: What makes a compliant ETS application to register forest land (4:49)
Transcript – show/hide
[Aerial footage of hills covered with young pine trees next to established forest.]
[Ministry for Primary Industries and Te Uru Rākau – New Zealand Forest Service logos. Text on screen: Te Uru Rākau – New Zealand Forest Service is a business unit of the Ministry for Primary Industries.]
Is joining the ETS is right for you?
[Lesley James, team leader of the Forestry ETS Operations team, speaks to camera, alternating with shots of aerial footage of pine forest.]
This video is about your application to register forest land in the New Zealand Emissions Trading Scheme, or 'ETS'.
Before applying to register land, watch the first video in this series on what to consider before joining. There are costs involved and ongoing responsibilities if you register in the ETS.
If you decide to join, keep watching this video on what to gather before you apply and why we need these things.
Consider hiring a representative
Lesley: In the ETS, there are some tasks you will need to complete. Some of these tasks can be complex.
You can appoint someone as a representative to complete some of these tasks on your behalf. Read more about this on the MPI website.
Appointing a representative to manage your ETS tasks
Why we need the information in your application
[Shots of people working at computers, with drone footage of young pine forest in between.]
Lesley: If you apply to register land in the ETS, we assess your application to see if the land is eligible to enter the scheme. We are looking at two things. Firstly, that you own the forest, or have a registered forestry right or lease. Secondly, that the forest itself is eligible. If we don’t know enough about your land to work out whether it’s eligible, it won’t be able to enter the scheme.
You can find out more about eligibility by watching the first video in this series, or on the MPI website.
How forest land is defined in the ETS
What your application must include: Maps
Lesley: We need to know exactly which areas of land you are applying to register, so you need to give us a map of that land.
The map we need is a digital map, also called a 'shapefile'. There are detailed instructions for how to create this map on the MPI website.
[Screenshot of the online resource 'A guide to mapping forest land in the ETS' and the web link to access it.]
How to map forestry for the Emissions Trading Scheme
There is no online tool for making these maps. They need to be made using geographic information systems, or 'GIS'. If you aren’t experienced in GIS, and don’t know how to create shapefiles, we recommend that you hire a forestry or GIS consultant to do this for you.
[A screen from a software application showing an aerial photograph of forest land next to farmland, with shapes covering some of the map]
What your application must include: Evidence that forest land is eligible to enter the ETS
Lesley: Your land must be eligible to enter the ETS. The rules for this are on the MPI website.
You need to show us evidence that the land is post-1989 forest land.
[A man wearing glasses works at a computer]
Lesley: When we assess whether your land is eligible, we use a wide range of aerial and satellite imagery from before 1980 to today. Make sure you review all of the imagery that’s available from 1980 to 2008 for the land you’re applying to register, to confirm it’s eligible.
When you’re sure it is, gather all the imagery that shows this, and include it with your application. You can include other evidence as well, such as seedling orders.
Any information you can provide helps build a story of the land use history.
Find out more about imagery and other evidence on the MPI website.
Providing information to support your application to register post-1989 forest land in the Emissions Trading Scheme [PDF, 17 MB]
What your application must include: Details of properties
Lesley: You must give us details for the properties in the application. This includes the legal description, registration district, and title reference for each property.
Other evidence we may require: Resource Management Act compliance
Lesley: You may need to show us you complied with the Resource Management Act when planting the forest. Evidence for this could include resource consent, or some details on why resource consent wasn't required for your forest.
Other evidence we may require: Consent
Lesley: If the land or registered forestry right or lease is held by a large group, everyone needs to give their consent to register land in the ETS.
If you’re applying as a registered forestry right or leaseholder, you need to show that the landowner has given consent, and vice versa.
[Text on screen:] Check the website for other evidence you may need to provide.
Registering in the ETS with post-1989 forest land
Service fees
Lesley: You'll be charged for services when applying to register post-1989 forest land in the ETS. The size of the fee depends on the area of land you are applying to register.
Check the MPI website for current fees.
Service fees for forestry in the ETS
Contact us if you need help
Lesley: Applying to register land in the ETS can be complex. We are happy to help.
[Text on screen:] Email: forestryets@mpi.govt.nz or call 0800 CLIMATE (0800 25 46 28) and select option 1. Website: mpi.govt.nz/ets
[Ministry for Primary Industries and Te Uru Rākau – New Zealand Forest Service logos. Te Uru Rākau – New Zealand Forest Service is a business unit of the Ministry for Primary Industries.]
[End of transcript]
Watch the first video in this series:
What to consider when joining the ETS for forestry – YouTube
Application wait times
Find out the median wait times for applying to register in the ETS:
Application wait times and statistics for forestry in the ETS
If your application includes all the documents we need, it will be processed closer to the median wait time. If your application is missing required information, it will take us much longer to process it. In some cases, applications with missing information will be rejected and a partial refund provided.
Our checklist may help you complete the steps to registering.
Checklist for applying to register land in the ETS [PDF, 364 KB]
