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What post-1989 forest land is
Post-1989 forest land is certain forest that is first established after 31 December 1989. It can include:
- regenerating and planted native (indigenous) forest
- forests of exotic tree species
- mixed-species forest.
If you are thinking about registering in the ETS with post-1989 forest land, make sure the land is eligible. If your land is not eligible, it cannot enter the ETS.
You must also ensure that the forest meets, or will meet, the size and cover requirements for land to be eligible “forest land” in the ETS.
Find out the minimum area, width, height and crown cover requirements for ETS forest land
Rules for post-1989 forest land eligibility
The trees on post-1989 forest land must be planted or first established after 31 December 1989. The history of the land since 1989 also plays a part in determining if the land is post-1989 forest land.
The forest may be post-1989 forest land if it was established onto land with a history that meets one of the following conditions.
- The land was not forest land on 31 December 1989.
- The land was forest land on 31 December 1989 and was deforested between 1 January 1990 and 31 December 2007 inclusive.
- The land was originally pre-1990 forest land that was deforested after 31 December 2007. Any units owing as a result were paid in full.
- The land was pre-1990 forest land that was deforested after 31 December 2012. It was replaced at the time under an application to plant a replacement forest elsewhere (pre-1990 offsetting forest land).
- The land was planted for offsetting deforestation of pre-1990 forest land elsewhere. It was deforested after 31 December 2012, and any units owing for deforesting the land paid.
- The land was originally pre-1990 forest land. The owners successfully applied for an exemption to deforest without any liability to pay units. The owners have since surrendered the units that would have been owed without the exemption.
- The land was originally pre-1990 forest land. The owners successfully applied for an exemption to deforest without any liability to pay units. The land was deforested more than 8 years ago and was not forested during this time.
If the land is presently registered in the ETS as any type of offsetting forest land, it cannot enter the ETS as post-1989 forest land. This does not exclude land that was previously offsetting land and subsequently deforested, as above.
However, if you applied successfully after 1 January 2023 to plant forest to offset emissions from deforesting post-1989 or pre-1990 forest land, and you planted too much, some of this land may be decommissioned and enter the ETS as post-1989 forest land.
About planting forest to offset emissions from deforesting pre-1990 forest land
Post-1989 forest land can 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 and permanent forestry must meet the same eligibility criteria for post-1989 forest land above. However, there are differences between them in what you’re committing to once the land is in the ETS.
Standard forestry |
Permanent forestry |
---|---|
You’ll earn and pay (surrender) units based on averaging accounting in your emissions returns |
You’ll earn and pay (surrender) units based on stock change accounting in your emissions returns |
Because the forest land enters the ETS under averaging accounting, you’ll only earn units while the first rotation of your forest is younger than the ETS-specified average age for the forest. |
Because the land is registered under stock change accounting, you’ll earn units as the trees grow and pay (surrender) units after harvesting. |
You can harvest any area of the forest land at any time. You do not need to pay (surrender) units as long as you replant the forest so that the land isn’t considered deforested. |
You can only carry out limited harvesting of the forest. You may face a penalty if 30% or less of tree crown cover remains after clearing. |
You can remove the land from the ETS at any time. You must pay (surrender) any units received for the land if you do (unless the land is permanently damaged by a natural event). |
You cannot remove land from permanent forestry except in specific circumstances, with approval from the Minister for Climate Change. You have the option to remove the land from permanent forestry after 50 years. |
Read more about standard forestry in the ETS
Find out more about earning units under averaging accounting
Find out more about permanent forestry in the ETS
How the ETS defines deforestation
Read about penalties for clear-felling or deforesting permanent forestry
Post-1989 forest land entering the ETS before 2023
Post-1989 forest land that entered the ETS before 1 January 2023:
- was not divided into standard and permanent forestry
- is now considered standard forestry, unless you apply to move it to permanent forestry
- is generally registered under stock change accounting, unless it was eligible to move to averaging accounting (land registered from 2018-2022) and you applied to move it.
Responsibilities for post-1989 forest land in the ETS
Once your post-1989 forest land enters the ETS, you will have certain responsibilities. These include submitting emissions returns and paying (surrendering) units when required.
When and how to submit emissions returns
Read more about earning and surrendering units
If you buy or inherit post-1989 forest land that is already in the ETS, and there are no other interested parties involved, the ETS responsibilities for the land transfer to you. ETS responsibilities may also transfer to someone else if a registered forestry right or lease is changed or expires.
Read more about buying, selling, and inheriting land registered in the ETS
Forestry rights and leases in the ETS
If you own eligible post-1989 forest land and you are not registered in the ETS, you have no ETS responsibilities. You cannot claim units. You won't have to pay units if you harvest or deforest the land.
Your responsibilities when land enters the ETS
Land that cannot enter the ETS as post-1989 forest land
Examples of forest that you can't enter the ETS as post-1989 forest land include land:
- that does not meet the conditions for area, crown cover, and tree height, and are not likely to meet these without intervention
- that meets the ETS definition of pre-1990 forest land
- that was established as forest land before 1990 but was native (indigenous) forest as at 31 December 2007
- that has fruit and nut trees that are managed as food crops
- that you do not own or hold a registered forestry right or lease over
- on Crown land where you are not party to a Crown conservation contract
- that is not compliant with the Resource Management Act 1991.