News and changes to the ETS
Find the latest news about the Emissions Trading Scheme (ETS) and how changes will make the ETS work better for forest owners.
- On this page:
- Latest news and changes
- Keep informed with the Forestry ETS Alerts
- Changes to forestry in the ETS
- Yearly summaries of changes
- Statistics on applications to register post-1989 forest land
Latest news and changes
1 June 2022
Information about infringement offences in the ETS is now available
Keep informed with the Forestry ETS Alert
Stay informed about forestry in the Emissions Trading Scheme by subscribing to the Forestry ETS Alert. This newsletter replaced the Sustainable Forestry Bulletin.
Subscribe to the Forestry ETS Alert
Read previous editions of the newsletters
Changes to forestry in the ETS
On Monday 22 June 2020, the Emissions Trading Reform Bill received royal assent. This means it became law, and the Climate Change Response Act 2002 will be updated to reflect the new provisions as they come into effect.
Most of the new provisions that relate to forestry will come into effect on 1 January 2023.
Climate Change Response (Emissions Trading Reform) Amendment Act 2020 – NZ Legislation
Climate Change Response Act 2002 – NZ Legislation
Most of the changes to forestry that will start on 1 January 2023 require amendments to the Climate Change (Forestry Sector) Regulations 2008 to make them work in practice.
Climate Change (Forestry Sector) Regulations 2008 – NZ Legislation
If you have any questions about changes to forestry in the Climate Change Response Act, email etsforestrychanges@mpi.govt.nz
Changes happening from January 2023
The detailed rules and settings for most of the changes taking effect on 1 January 2023 will be set out in amendments to the forestry sector regulations. These are being developed now.
New carbon accounting approach called "averaging accounting"
All new registrations from 1 January 2023 will use averaging accounting, unless the forest is registered as a permanent forest. If you register between 1 January 2019 and 31 December 2022 you will be able to switch to averaging accounting in 2023, or you can stay in stock change accounting.
New activity for permanent forests in the ETS
The permanent forestry activity will replace the Permanent Forest Sink Initiative (PFSI). It will be available for post-1989 forest land from 1 January 2023 for forests that will not be clear-felled for at least 50 years.
New exemption from carbon liabilities for temporary adverse events
If all or part of a registered post-1989 forest is cleared by a temporary adverse event such as a fire, the owner will be able to apply for an exemption from emissions liabilities. Under this exemption, the affected part of the forest will not earn any more units until it reaches the carbon stock it was at before the adverse event.
New ability to offset deforestation liabilities
When a post-1989 forest under averaging accounting is deforested, the owner will be able to establish a forest elsewhere to offset their deforestation liability.
Summaries and timing of changes to forestry in the ETS
2022 updates and changes
17 December 2021
Infringement offences
The Climate Change Response (Infringement Offences) Regulations 2021 will come into force on 1 January 2022.
Forestry ETS participants, and those who own pre-1990 forest land, must keep accurate records and provide certain information when required. Those who don't comply may be served with an infringement notice.
To encourage good compliance and provide forestry participants with the best opportunity to comply with their obligations, Te Uru Rākau – New Zealand Forest Service will take a phased approach to enforcement. In 2022, to promote understanding of the new rules, we will advise participants when they may have infringed. From 2023, infringement offence notices will be issued where applicable.
2021 updates and changes
13 December 2021
Preliminary assessments to cease
Te Uru Rākau – New Zealand Forest Service will stop issuing preliminary assessments from 24 December 2021. This is part of a move to improve the efficiency of processing applications to register post-1989 forest land in the Emissions Trading Scheme (ETS).
This change will apply to all lodged applications still in the processing queue as at 24 December 2021, and new applications submitted after that date. The eligibility of land to be registered into the ETS as post-1989 forest land will be decided based on information available at the time.
Read the Sustainable Forestry Bulletin
7 December 2021
New exemption from pre-1990 deforestation obligations for less than 50 hectares
One of the amendments to the Climate Change Response Act 2002 introduced a new exemption from pre-1990 deforestation obligations.
Landowners who intend to deforest less than 50 hectares of pre-1990 forest land that is Māori land, or had 10 or more owners on 1 September 2007, may be eligible to be exempt from deforestation liabilities.
This new exemption type is in addition to the existing "less than 50 hectare" exemption.
Find out more about this exemption
3 November 2021
Proposed amendments to the forestry regulations
The Cabinet paper on the direction of several major amendments to the forestry regulations is available to download.
Cabinet has agreed to:
- the mechanics for how averaging accounting will work in practice
- the definition of temporary adverse events to implement the new exemption from paying carbon liabilities after events that damage and clear the forest (for example, fires or storms)
- how the penalty for clear-felling a permanent forest will be set
- policies for applying the field measurement approach (FMA).
Find the Cabinet paper and supporting documents
Changes to forestry from January 2021
You can decide whether to transfer ETS participation when you grant a forestry right or lease
It is now up to you whether you transfer your ETS participation to the other person (a "transmission of interest") when you grant a forestry right or lease over your forest. You will need to opt in to a transfer of ETS participation – if you do not opt in, participation will not be transferred.
This change does not affect the status of current forestry rights or leases. For these, participation will return to the landowner when the lease or right is finished.
Buying, selling, or transferring ETS forest land
A new definition of "re-establishment" makes it easier to include supplementary planting
Re-establishment of forest land must still happen primarily through natural regeneration of indigenous forest species. However, it can now include some supplementary planting to help this process.
A new penalty regime
A new penalty regime effective from 1 January 2021 covers:
- failure to surrender or repay units on time
- errors in emissions returns
- failing to submit a return
- payment of penalties
- entitlements while an obligation is outstanding.
There are new rules for transferring leases or rights for land registered in the ETS.
The fixed price option is also being removed, so participants must meet their surrender obligations with units.
Read more on penalties and the Emissions Trading Scheme
Read the announcement in the Sustainable Forestry Bulletin (December 2020)
New price controls in the ETS
The Amendment Act introduced the ability for the Government to hold auctions of New Zealand Units to align the supply of units in the ETS with New Zealand’s emission reduction targets. The first auction was on 17 March 2021. The Amendment Act also introduced new price controls alongside auctioning.
Regulations on auctions, limits and price control settings for the NZ ETS – MfE
2020 updates and changes
Minor changes that started on 23 June 2020
You have more time to surrender or repay units
When the Environmental Protection Authority issues a surrender notice, you have 60 working days to surrender or repay units. The surrender notice describes your obligations and includes the due date.
You must notify "interested parties" when you join or leave the ETS, and add or remove land
You must notify any "interested parties" if you:
- apply to join or leave the ETS
- add or remove land from the ETS.
If you are the landowner, you must notify any person with a registered forestry right or lease over the land.
If you are the holder of a registered forestry right or lease you must notify the landowner. If the Crown has an interest in the land you also need to notify the Crown.
It's now easier to ask for an emissions ruling
If you want to know if something will have ETS implications, you can ask the Te Uru Rākau to make an emissions ruling. For example, before you clear some trees, you can ask us if this counts as deforesting pre-1990 forest land.
The process for emissions ruling has changed. It is now easier to find out if land will be eligible before you apply to register in the ETS.
The timing for mandatory emissions return periods is being re-aligned
Emissions return periods usually last for 5 years. The current mandatory emissions return period runs from January 2018 to December 2022.
Reporting to the Paris Agreement also has a 5-year cycle, but this is from January 2026 to December 2030, then 2031 to 2035, and so on. To align our reporting with the Paris Agreement, the next mandatory emissions return period will run for 3 years from January 2023 to December 2025.
From January 2026, mandatory emissions return periods will return to a 5-year cycle.
Transmissions of interest are changing for executors or administrators of an estate
The transmission of interest process is changing for executors and administrators dealing with the ETS obligations of a participant who has died.
If you administer more than one estate, you must treat them separately. This means that outstanding liabilities from one estate will not impact another. You will not become an FMA participant if you are administering estates with a combined area exceeding 100 hectares.
Executors and administrators do not need to submit an emissions return when they come into possession of the land. An emissions return is only required when the land is passed on to the successors.
Statistics on applications to register post-1989 forest land
This information will keep you informed about the volume of applications submitted and progress with processing them.
The tables and chart below show:
- the number of applications to register post-1989 forest land by hectare submitted, processed and approved (updated monthly)
- hectares processed by quarter (updated quarterly)
- the number of hectares submitted by applicants (updated quarterly).
The applications cover both:
- the registration of forest land by new applicants
- adding land to existing ETS registrations.
The hectares processed includes both eligible and ineligible forest land as determined by Te Uru Rākau – New Zealand Forest Service. Eligible forest land means it is approved.
Note: As there is a processing backlog, submitted applications are not processed in the month they are received
Applications submitted and processed (number and hectares) by month
Year |
Month |
Number of applications submitted |
Hectares submitted |
Number of applications processed |
Hectares processed |
Hectares approved |
Hectares approved as percentage of hectares processed |
---|---|---|---|---|---|---|---|
2021 | September | 57 | 8,353 | 37 | 2,787 | 2,517 | 90% |
October | 40 | 3,303 | 35 | 3,500 | 2,968 | 85% | |
November | 90 | 8,884 | 51 | 2,680 | 2,414 | 90% | |
December | 109 | 13,365 | 33 | 2,164 | 1,690 | 78% | |
2022 | January | 94 | 6,377 | 20 | 2,563 | 1,598 | 62% |
February | 144 | 15,249 | 56 | 4,873 | 4,577 | 94% | |
March | 305 | 25,486 | 79 | 10,441 | 8,868 | 85% | |
April | 761 | 67,006 | 59 | 9,553 | 8,204 | 86% | |
May | 136 | 11,027 | 94 | 11,730 | 11,033 | 94% | |
June | 105 | 5,807 | 126 | 12,212 | 11,379 | 93% |
Hectares processed by quarter
Quarter |
Hectares |
---|---|
Q4 2021 |
8,344 |
Q1 2022 |
17,877 |
Q2 2022 |
33,495 |
Hectares submitted per quarter in the current mandatory emissions return period

Other ETS statistics
Find out about how much post-1989 forest land is in the ETS by region and land use capability class (updated quarterly):
Latest ETS forest land statistics [PDF, 770 KB]
Who to contact
If you have questions about forestry in the ETS:
- email climatechange@mpi.govt.nz
- call 0800 CLIMATE (0800 25 46 28) and select option 2.