Applying to plant forest to offset emissions when removing post-1989 forest land from the ETS

Removing post-1989 forest land under averaging accounting from the ETS without paying New Zealand Units

When post-1989 forest land in the ETS is deforested, you must remove it from the ETS. You may choose to remove land from the ETS for other reasons. Usually, you must pay New Zealand Units (NZUs or units) for the removal. This is known as “surrendering” units.

If your forest land is registered under averaging accounting, you can apply to plant another forest to offset the emissions instead.

Find out more about post-1989 forest land

Find out more about averaging accounting

After you apply to offset post-1989 forest land in the ETS, you must report on the planting of your new forest. This process happens over several years. If you don’t meet the requirements, you may end up paying units. Once the full offsetting process is finished, the offsetting land is considered:

• post-1989 forest land under averaging accounting
• second-rotation forest.

The usual responsibilities will apply for this land.

Find out more about your responsibilities for post-1989 forest land in the ETS

The application process and following steps are complicated. Consider hiring a consultant or appointing a representative to help you.

Find out about appointing a representative to manage your ETS tasks

Criteria for planting a new forest to offset post-1989 forest land

To offset your forest, both the post-1989 forest land and the offsetting land need to meet certain criteria.

Criteria for the post-1989 forest land being removed from the ETS

The forest land you’re applying to offset must:

• have been established by planting, rather than self-seeding
• use the averaging accounting method, rather than stock change accounting
• be on a second or later rotation (harvest cycle), or on a first rotation but past the “average age” of the trees on the land.

The average age is defined by the ETS rules and depends on the type of forest. Tree species in the ETS are grouped into 5 forest types. Each forest type has its own average age:

• Radiata pine: age 16
• Douglas-fir: age 26
• Exotic softwoods: age 22
• Exotic hardwoods: age 12
• Native (indigenous) forest: age 23

Learn more about averaging accounting

Criteria for the offsetting land

The land you’re applying to use as offsetting land must be one of the following:

• land that doesn’t contain forest but, if planted, would be eligible post-1989 forest land on its first rotation
• forest land on its first rotation that was planted less than 2 years previously
• excess land from a previous application to offset post-1989 or pre-1990 forest land.

Find out more about excess land

Each area of offsetting land must be at least 1 hectare in area and have an average width of at least 30 metres. When it’s planted, it will need to meet or be expected to meet 30% crown cover.

Find out what makes land eligible as post-1989 forest land

Offsetting land must also:

• be at least the same size as the area of forest land being offset
• be expected to store at least as much carbon as the area being offset.

You don't need to be legally responsible for the offsetting land, but you need to submit your application with a party who is.

Find out more about submitting an application with another party

Creating carbon accounting areas for the offsetting forest land

Your post-1989 forest land will have 1 or more carbon accounting areas. These are areas of forest land that you use when you calculate your emissions returns. When you apply to offset this post-1989 forest land, you must map equivalent carbon accounting areas on the offsetting land.

For each carbon accounting area you want to remove, you must:

• create a single carbon accounting area the same size or larger to offset it, or
• create multiple carbon accounting areas to offset it, whose total area is the same or larger.

Find about more about carbon accounting areas

Applying to plant a new forest to offset post-1989 forest land

To apply to offset your post-1989 forest land, you must complete the form below.

Apply to offset post-1989 forest land Forestry in the Emissions Trading Scheme – post-1989 form [PDF, 1.3 MB]

Submit the form by uploading it to Tupu-ake – Forestry ETS online services.

In the form, you must provide information about the land. For example, you must:

• tell us which carbon accounting areas you want to offset
• complete an emissions return for those carbon accounting areas
• tell us what land you want to use as offsetting land for each of your carbon accounting areas
• provide information about the forest you plan to plant and any forest already present on this land
• do calculations to show that the offsetting land is expected to store as much carbon as the post-1989 forest land
• calculate the unit balances of the new carbon accounting areas.

You must include digital mapping information (known as a shapefile) about the land you’re applying to use as offsetting land. You or a consultant can create a shapefile.

See the requirements for mapping land in the ETS

There is a fee for submitting this application.

Find out the current fee for applying to offset post-1989 forest land

If more than one party is involved

If different people or organisations are responsible for the offsetting land and the post-1989 forest land, the application must be signed by both parties.

If the party responsible for the offsetting land isn’t yet registered in the ETS, the application must also include the information needed to register them. They may register in the ETS as the landowner, registered forestry right or leaseholder, or party to a Crown conservation contract.

If your application is approved

We’ll contact you once we have assessed your application. If it’s approved:

• the carbon accounting areas you’ve applied to offset are removed from the ETS
• the areas you’re planting or have planted become offsetting land.

When this happens, these offsetting areas take on the “unit balance” of the carbon accounting areas you’ve applied to offset. The unit balance is the net total of units received for a carbon accounting area since it was registered. This means if you deforest the offsetting land, you will need to pay all the units earned for the original forest.

If the offsetting land was already registered in the ETS as post-1989 forest land, it will have its own unit balance. To become offsetting land, this unit balance must be surrendered. The person or organisation responsible for this land in the ETS must pay units to the value of the unit balance. The Environmental Protection Authority will send you a notice telling you how many units you must pay.

After your application is approved, you have other responsibilities. These involve reporting on the status of the offsetting land.

Find out what you need to do once your application is approved