Proposals to redesign the permanent forest category in the New Zealand Emissions Trading Scheme

About this consultation

This consultation seeks your views on how best to redesign the New Zealand Emissions Trading Scheme (NZ ETS) permanent forest category.

It is the next step in the process to ensure the NZ ETS permanent forest category delivers the best outcomes for all New Zealand.

The Government is also consulting on a review of the NZ ETS.

Submissions on both consultations are open between 19 June and 11 August 2023.

We're holding some webinars on both topics while the consultation is open.

Find out about the webinars and register

Have your say

We are seeking your views on our proposals to redesign the NZ ETS permanent forest category to better support the Government's forestry and climate change objectives, as well as Māori aspirations for their land.

We want your feedback on:

which forests should be allowed in the permanent forest category?
how should transition forests be managed to ensure they transition and reduce the financial risk to participants?
how should permanent forests in the NZ ETS be managed?

About the related NZ ETS review consultation

The Government is consulting on the NZ ETS review alongside this consultation on redesigning the permanent forest category.

An inter-agency team consisting of the Ministry for the Environment, the Ministry for Primary Industries and the Ministry of Business, Innovation and Employment is conducting the review. It aims to assess if the scheme's design and settings need to be changed to provide a stronger incentive for businesses to transition away from fossil fuels, while also supporting greenhouse gas removals.

Both programmes are open for consultation at the same time because they are interlinked. They both have significant implications for the forestry sector, but also New Zealand's climate change response, rural land-use change and Māori interests.

We want to hear your thoughts on both issues – and will try to incorporate all your feedback on both topics, regardless of how you provide us feedback. However, when you are providing us feedback, try to target your feedback to the relevant consultation feedback questionnaire.

Discussion document on the permanent forest category

Proposals to redesign the permanent forest category in the New Zealand Emissions Trading Scheme (NZ ETS) [PDF, 5.6 MB]

Related consultation

New Zealand ETS review – Ministry for the Environment

Modelling and related publications

Afforestation Economic Modelling [PDF, 2.3 MB]
Provides afforestation and planted forest deforestation intentions out to 2030. Noting the survey was completed in December 2022 when the carbon price was around $80 NZU. Completed by the University of Canterbury and published by MPI in May 2023.

Afforestation and Deforestation Intentions Survey 2021 [PDF, 1.2 MB]
MPI’s forecast of unit allocation and surrenders as at March 2023. This report describes the data, assumptions, the model used, limitations and uncertainty in modelling unit supply. Published by MPI in April 2023.

New Zealand’s Emissions Trading Scheme Forestry Allocation and Surrender Forecasts [PDF, 1.2 MB]
Provides afforestation and planted forest deforestation intentions, surveyed in December 2021 when the carbon price was around $68 NZU. Completed by the University of Canterbury and published by MPI in May 2022.

Afforestation and Deforestation Intentions Survey 2022 [PDF, 943 KB]
Provides modelled afforestation rates at various carbon prices. Completed by the University of Canterbury and published by MPI in November 2021.

ETS supply modelling based on CCC ETS price controls [XLSX, 513 KB]
An excel spreadsheet providing the NZU calculations from projected afforestation over 2020 – 2050, the carbon price assumptions, and area data.

Webinars on the proposals

The 2-hour webinars will cover both topics. The first hour will be on the Emissions Trading Scheme (ETS) review. Following a 15-minute break, the second hour will cover the ETS permanent forestry category design.

The 90-minute youth/rangitahi webinar will focus on the ETS review.

Public webinars

Tuesday 27 June, 12pm (noon) – Register on Zoom

Thursday 29 June, 6.30pm – Register on Zoom

Recorded video of the public webinar – YouTube

Māori/iwi webinars

Wednesday 28 June, 6.30pm – Register on Zoom

Friday 30 June, 12pm – Register on Zoom

Recorded video of the Māori/iwi webinar – YouTube

Youth/rangatahi webinar

Wednesday 5 July, 4pm – Register on Zoom

Making your submission

Submissions are open until 11.59pm on 11 August 2023.

You can make a submission several ways – by completing an online form, or by writing your feedback and sending it to us by email or post.

Online submissions

Complete the online submission form – Ministry for the Environment

Written submissions

If you are emailing your own submission, send it to NaturalResourcesPol@mpi.govt.nz

While we prefer a submission through the online form or by email, you can post your submission to:

Redesigning the NZ ETS permanent forest category consultation
ETS Forestry Policy
Ministry for Primary Industries
PO Box 2526
Wellington 6140.

What to include in written submissions

If you are emailing or posting your submission, make sure you tell us:

the title of the consultation document
your name and title
your organisation's name (if you are submitting on behalf of an organisation, and whether your submission represents the whole organisation or a section of it)
your contact details (such as phone number, address, and email).

Next steps

Following consultation, the Government will carefully consider feedback provided through submissions. Decisions following this consultation will be a matter for the next Government after the 2023 election. Feedback from submissions will put officials in a good position to advise the incoming Government on next steps for the redesign of the permanent forest category.

We tentatively propose that changes could be implemented by 2025.

Background information

Forests play a vital role in New Zealand's response to the climate emergency. Forests reduce New Zealand's net emissions by sequestering carbon, helping New Zealand meet its key international and domestic emissions reduction targets.

Forests are also hugely significant to our economy, rural communities, and to Māori both culturally and economically. Forests are recognised for their carbon sequestration in the NZ ETS, by earning New Zealand Units (NZUs).

We want all forests – as much as possible – to be planted and managed in an environmentally appropriate way. We intend to take a cautious approach to managing the long-term environmental and ecological risks of permanent exotic forests when redesigning the permanent forest category.

New Zealand has an international commitment to reduce net greenhouse gas emissions by 50% below gross 2005 levels for the period 2021-2030. There are also domestic targets to reduce long-lived greenhouse gas emissions to net zero, and biogenic methane emissions by 24% to 47%, by 2050.

Previous consultation

This consultation follows on from one held last year on proposals to restrict permanent exotic forests in the NZ ETS in response to concerns about the impacts on the environment and rural communities from these forests. The proposals generated significant interest, shown by the volume and strength of the submissions received. Following this, the Government committed to taking more time to fully consider options for the future direction of the NZ ETS permanent forest category.

2022 consultation on managing exotic afforestation incentives by changing the forestry settings in the ETS

Submissions are public information

Note that all, part, or a summary of your submission may be published on this website. Most often this happens when we issue a document that reviews the submissions received.

People can also ask for copies of submissions under the Official Information Act 1982 (OIA). The OIA says we must make the content of submissions available unless we have good reason for withholding it. Those reasons are detailed in sections 6 and 9 of the OIA.

If you think there are grounds to withhold specific information from publication, make this clear in your submission or contact us. Reasons may include that it discloses commercially sensitive or personal information. However, any decision MPI makes to withhold details can be reviewed by the Ombudsman, who may direct us to release it.

Official Information Act 1982 – NZ Legislation