Forestry rights and leases in the ETS

Joining the ETS when there is a forestry right or lease over the land

If you’re a landowner, you can register post-1989 forest land in the ETS when someone else holds a forestry right or lease over your land. You can also register the land in the ETS if you hold a forestry right or lease. However, an area of forest land can only be registered in the ETS by one party at a time.

If you register post-1989 forest land, you are responsible for "participation" in the ETS. This means you will be responsible for:

• reporting carbon stock changes in emissions returns
• telling us if you deforest the land
• telling us about changes to ownership, forestry rights, or leases over the land if it means ETS participation will transfer (we’ll explain this on this page).

Read more about emissions returns and when to submit them

You are also entitled to any New Zealand Units (NZUs or units) earned and liable for any units owed. You earn units based on increases in the amount of carbon stored in your post-1989 forest land, and pay units when the amount of carbon decreases. This is also known as surrendering units. Each unit represents 1 tonne of carbon.

You must get written consent from all interested parties before you join the ETS.

• If you are the landowner, any forestry right or leaseholder is an interested party.
• If you hold a forestry right or lease over the land, the landowner is an interested party.

You and the interested party must complete a consent form. Include this form when you apply to register the land in the ETS.

Interested party consent – form [PDF, 290 KB]

You will also need to notify any interested parties if you decide to leave the ETS.

Granting a forestry right or lease over ETS-registered post-1989 forest land

As a landowner, you might grant a forestry right or lease over your ETS-registered post-1989 forest land. You and the new right or leaseholder can decide what to do about ETS responsibilities.

Participation in the ETS will stay with the landowner by default. If this is what you want, you don’t need to do anything.

If both parties agree, the new right or leaseholder can take over ETS responsibilities. You will need to transfer the ETS participation for this land from the owner to the right or leaseholder. To transfer participation, you must:

• agree to this in writing (for example, as part of the forestry right or lease agreement)
• provide us with written consent from the landowner for the transfer of ETS participation to happen before the forestry right or lease is granted
• submit a transfer of participation form completed by both parties.

You can send us written consent using the Opt-in to transfer ETS responsibilities form, or send your own document.

You must submit your transfer of participation form within 20 working days of the land transfer date. This is the date the forestry right or lease is granted.

After you tell us about the transfer, we will create your emissions return in the online system, Tupu-ake. We will notify you when your emissions return is available. You must complete it and submit it in the system.

This emissions return accounts for changes in carbon stock up to the transfer date. Any entitlements or liabilities from this emissions return belong to the landowner. This means you may receive or need to pay units.

Tell us about a transfer of ETS responsibilities – form [PDF, 513 KB]

Opt-in to transfer ETS responsibilities – form [PDF, 322 KB]

Transferring a forestry right or lease for ETS-registered post-1989 forest land

As a forestry right or leaseholder, you must tell us when:

• you are the registered party for that post-1989 forest land in the ETS, and
• the forestry right or lease is transferred to another party.

The new forestry right or leaseholder will become responsible for participation in the ETS.

Both parties must complete the relevant sections in a transfer of participation form. You must send this to us within 20 working days of the transfer.

As the party transferring the forestry right or lease, you must complete an emissions return. After you tell us about the transfer, we will create your emissions return in the online system, Tupu-ake. We will notify you when your emissions return is available. You must complete it and submit it in the system.

This emissions return accounts for changes in carbon stock up to the transfer date. Any entitlements to earn or liabilities to pay units from this emissions return belong to you. You must send the emissions return to us within 20 working days of the transfer date.

Tell us about a transfer of ETS responsibilities – form [PDF, 513 KB]

Expiry or termination of a forestry right or lease

As a forestry right or leaseholder, you must tell us when:

• you are the registered party for the relevant post-1989 forest land in the ETS, and
• the forestry right or lease expires or is terminated.

When this happens, the landowner will become responsible for participation in the ETS.

Both parties must complete the relevant sections in a Tell us about the expiry or termination of a registered forestry right or lease form. You must send this to us within 20 working days of the transfer date. This is the date the right or lease expires or is terminated.

As the holder of the expiring forestry right or lease, you must also complete an emissions return. After you tell us about the transfer, we will create your emissions return in the online system, Tupu-ake. We will notify you when your emissions return is available. You must complete it and submit it in the system.

This accounts for changes in carbon stock up to this point. Any entitlements or liabilities from this emissions return belong to you. This means you may need to pay units. You must send the emissions return to us within 20 working days of the transfer date.

Tell us about the expiry or termination of a registered forestry right or lease – form [PDF, 575 KB]

Sale of ETS-registered forest land where there is a forestry right or lease over the land

When the landowner is registered in the ETS and sells the land, the new landowner takes on ETS responsibilities. The seller needs to tell us when this happens.

However, if participation in the ETS is held by a forestry right or leaseholder, it stays with them when the land is sold. There's no transfer of participation, so you don't need to tell us about the sale of land.

Find out more about buying and selling ETS-registered forest land