Policy changes from 31 October
The Government has introduced policy changes intended to limit how much farmland is converted to exotic forest and registered in the ETS. These changes are to protect our most productive land for food production while still allowing sustainable growth of the forestry sector.
On 23 September 2025, the Climate Change Response (Emissions Trading Scheme – Forestry Conversions) Amendment Bill became an Act.
The Act came into effect on 31 October 2025.
What restrictions does the Act introduce?
Until 31 October 2025, there were no restrictions on how much forest land you could register in the ETS.
The changes restrict how much Land Use Capability (LUC) class 1 to 6 farmland you can convert to exotic forest and register in the ETS. It does not prevent people from planting forests outside of the ETS.
Find out more about LUC restrictions on post-1989 forest land
About the Land Use Capability (LUC) classification system
The LUC classification system classifies land based on its ability to support various productive uses over time. Land is classified based on features such as climate, soil, slope, vegetation, and erodibility.
LUC class 1 is the most productive land and LUC class 8 is the least productive.
