Submitting emissions returns when certain situations change

When emissions returns are required

Emissions returns contain your assessment of:

• the changes in carbon in forest land over time
• the number of New Zealand Units (NZUs or units) you earned or that you must pay (surrender).

You may already be familiar with the emissions return required at the end of each mandatory emissions returns period (MERP).

More about emissions returns and mandatory emissions return periods

There are other situations where you must submit an emissions return, including:

• after ownership of post-1989 forest land changes
• when a registered forestry right or registered lease is granted, transferred, or expires
• when removing post-1989 forest land from the ETS
• if deforesting pre-1990 forest land
• new requirements for emissions returns from 1 January 2023 onwards.

Emissions returns after ownership of post-1989 forest land changes

When ownership of post-1989 forest land in the ETS changes, such as after a sale or inheritance, the responsibility (participation) for the land in the ETS moves with it. You must notify us and submit an emissions return:

• within 20 working days of the sale, if you sold the land
• as soon as you can after the land transfers to you, if you inherited it.

This emissions return covers the land involved in the sale or succession only. You don’t need to complete a return for other forest land that isn’t changing hands.

Find out more about what you need to do when selling or inheriting post-1989 forest land

Emissions returns after a registered forestry right or registered lease is granted, transferred or expires

Registered forestry rights and registered leases are recorded on land titles. The responsibility for the land in the ETS may transfer to someone else if:

• a right- or leaseholder is registered in the ETS, and the right or lease is transferred to someone else, expires or is terminated
• the landowner is registered in the ETS and subsequently grants a forestry right or lease over the forest land.

If this happens, this table shows the parties who are responsible for submitting an emissions return.

Find out what you need to do when registered forestry rights or leases change

Note: This emissions return covers the land involved in the registered forestry right or lease only. You don’t need to complete a return for any other forest land that isn’t under these agreements.

Emissions returns when removing post-1989 forest land from the ETS

When post-1989 forest land is registered in the ETS, the person or organisation registering it chose 1 or more carbon accounting areas. You must remove this land if it is no longer eligible to be in the ETS, for example if it was deforested. You can also choose to remove post-1989 forest land from the ETS.

You can remove whole carbon accounting areas, or a part of an area.

If the land being removed is a part of a larger carbon accounting area, and the rest of the carbon accounting area is staying in the ETS, you must:

• submit an emissions return within 20 working days from the application being processed (or within 20 working days from when the land was no longer eligible)
• pay (surrender) any units owing for the land removed.

Submitting the emissions return updates the number of units associated with that land. You must calculate the units for both parts of the carbon accounting area: the part staying in the ETS and the part being removed. You must pay (surrender) the units owing for the area being removed.

Find out more about requirements for emissions returns when removing post-1989 forest land from the ETS

Emissions returns and deforesting pre-1990 forest land

You must let us know within 20 working days of the date the deforestation is completed if:

• you deforest pre-1990 forest land, and
• there isn’t an exemption allowing you to deforest without informing us.

You must also submit an emissions return between 1 January and 31 March in the calendar year following the deforestation.

You will have other tasks to complete.

Find out what you must do if deforesting pre-1990 forest land

Find out when ETS obligations from deforesting pre-1990 forest land do not apply

More information about when pre-1990 forest land is considered deforested under ETS rules

New requirements for emissions returns after 1 January 2023

A change in the rules for the ETS from 1 January 2023 onwards means there will be other times when you must submit emissions returns. We’ll provide more information about these situations in early 2023. They include:

• moving post-1989 “standard forestry” to “permanent forestry”
• reconfiguring (merge or split) carbon accounting areas for post-1989 forest land
• planting replacement forest to offset emissions from deforesting post-1989 forest land (land under averaging accounting only)
• putting areas of land on “pause” from the ETS following temporary damage to the forest from a natural or accidental event (also known as a “temporary adverse event” in the ETS legislation)
• where forest is re-established successfully on land where ETS responsibilities were paused after temporary damage (temporary adverse event).

Learn more about the difference between post-1989 forest land as standard and permanent forestry

Find out about carbon accounting methods for forest land in the ETS