Important Facts of the News
- The Climate Change Response (ETS – Forestry Conversion) Amendment Act came into effect on 31 October 2025.
- The legislation blocks exotic forests from entering the Emissions Trading Scheme on LUC class 1-6 land.
- Exceptions apply to Māori-owned land and erosion-prone areas.
- Transitional exemptions apply for investments made between 1 January 2021 and 4 December 2024.
- The move aims to safeguard New Zealand’s productive farmland and support rural economies.
- The Ministry for Primary Industries has updated its online guidance and is hosting webinars.
NZ Implements Limits on Farmland-to-Forest Conversion
New Zealand has officially enforced its promise to restrict large-scale forest planting on prime agricultural land. The newly active Climate Change Response (Emissions Trading Scheme – Forestry Conversion) Amendment Act took effect on 31 October 2025, reshaping how landowners can participate in carbon offset schemes.
Agriculture and Forestry Minister Todd McClay confirmed that the change is designed to protect the country’s food-producing land and back rural livelihoods. The government said the move is also aimed at maintaining investor confidence in the forestry sector.
What the New Law Means for Landowners
Under the amendment, exotic forests can no longer enter the Emissions Trading Scheme when located on New Zealand’s most fertile soils, classified as Land Use Capability (LUC) classes 1 to 6. The policy includes targeted exceptions for Māori-owned blocks and land at high risk of erosion.
Those who have already made significant forestry-related commitments before 4 December 2024 will be eligible for transitional exemptions, provided they have a demonstrable stake in the land and qualifying investment.
Balancing Forestry and Food Security
Mr McClay highlighted the dual importance of farming and forestry in regional areas. The government stated its goal is to bolster both sectors to generate jobs and enhance trade potential. Farmers will continue to have the option to plant trees on part of their land if suitable.
Guidance and Sector Support
The Ministry for Primary Industries is leading efforts to ensure stakeholders understand the new rules. Online resources and webinars have been rolled out to support compliance. Dedicated personnel are also available to help applicants navigate the changes.
These updates mark a key milestone in balancing climate commitments with safeguarding agricultural output, especially as New Zealand works to strengthen its food security and export resilience.