The Emissions Trading Scheme (ETS) can be complex to navigate. We have extensive experience in all aspects of ETS administration including:
Some commonly asked questions about the Emission Trading Scheme (ETS).
The ETS is the price-based mechanism established by the New Zealand government to reduce our net greenhouse gas emissions and comply with Kyoto Protocol obligations. The ETS is a key part of our government’s climate change policy.
Under the ETS, forest land is defined as being at least one hectare with forest species that has or is likely to have tree crown cover of more than 30% on each hectare. Forest land does not include land that will have an average width of less than 30 metres.
Pre-1990 forest, is land that was in forest on 31 December 1989 and remained in predominantly exotic forest by 31 December 2007. Pre-1990 or old-growth indigenous forest is not subject to the rules of the ETS.
Post-1989 forest land is land that was established in forest after 31 December 1989. In other words, the land has undergone a conscious use change from ‘nonforest’ to ‘forest land’ on or since 1st January 1990.
|31 December 1989||1 January 1990|
|Was ‘forest land’ at 31 Dec 1989 and predominantly EXOTIC in 2008||Became ‘forest land’ from 1 Jan 1990|
|Can apply for ‘Offset’ to new location||Or change of land use / not forest land for longer than 4 years|
|“Pre – 1990 Obligation”||“Post-1989 Opportunity”|
The PFSI is an alternative to the ETS and promotes the establishment of permanent forests on previously unforested land.
Deforesting? Then you need to know this.
Anyone harvesting and changing the land use for over two hectares of pre-1990 trees must submit a deforestation return to Ministry for Primary Industries (MPI).
The two-hectare allowance applies to each five-year compliance period (2008-2102; 2013-2017). Owners are required to inform MPI of any deforestation within 20 days of harvesting the first tree, and then submit a deforestation return covering the calendar year (Jan 1st-Dec 31st) when the trees were felled. This return must be submitted between January 1st and March 31st of the following year.
The deforestation rules are quite prescriptive so please check with us if you are unsure about any of the regulations.
Forestry options include:
We can advise you on both the economic and environmental implications of the options available to you and work with you to determine a combination of uses which meet your objectives.
There is an opportunity within the current ETS around land reverting to indigenous species. There may also be potential for landowners who are considering establishing new native plantations to benefit from the ETS.
We advise anyone with large areas of reverting land or new native plantations to contact us for a full analysis of the ETS potential for this land.
The new ‘indigenous’ sequestration numbers when combined with potential revenues such as honey or managed grazing retirement, could appeal to many owners of phosphate-deficient Class 6 and 7 hill country with a passion for returning land to its original forest state.
We have created a Carbon Calculator that indicates the returns you could gain given the age, species and location of your forest. If you would like access to this tool, please contact our team.
Once we know which areas of your land are ETS-eligible, we can proceed with a site visit leading to a full land-use appraisal report.
Our land-use appraisals include:
We will also inform you of any grants or other funding packages potentially available for different options – for example: