23 January 2026

Foresters welcome fairer costs for the ETS

New Zealand’s representative forestry organisations welcome the Government’s move to reduce annual charges for foresters participating in the Emissions Trading Scheme (ETS). 

The Climate Forestry Association (CFA), NZ Institute of Forestry (NZIF), Ngā Pou a Tāne (NPaT)– The National Māori Forestry Association, Farm Forestry Association (NZFFA) and the Forest Owners Association (NZFOA) have worked with officials from the Ministry for Primary Industries over the last year to ensure these fees and charges were more reasonable, transparent and efficient.  

The consultation document proposes an annual charge of $10.25 per hectare for foresters to participate in the ETS. This is a substantial reduction from the unjustified charge proposed in 2023 of $30.25 per hectare. Alongside this, many of the other fees and charges for participating in forestry in the ETS have reduced from what was originally proposed. 

“We’re pleased to see the government responding to concerns from forest owners by proposing a reduction in the annual ETS charge down to one-third of the original proposal. This is a positive and sensible step that will help lower compliance costs and remove some of the administrative friction in the scheme,” says NZFOA Chief Executive Dr Elizabeth Heeg.

In 2023, the Climate Forestry Association, NZ Institute of Forestry, Ngā Pou a Tāne – The National Māori Forestry Association and the Forest Owners Association, along with a wide range of industry representatives and Māori forestry interests representing the owners of more than 300,000 hectares of local forest – launched a judicial review in the High Court seeking an urgent examination of the previous fees proposal, which they call excessive, unreasonable and disproportionate.

“We appreciate the leadership of Minister of Forestry Todd McClay in creating this Ministerial advisory group as an alternative to continuing litigation, so that our sector could work with officials to achieve these cost savings”, says James Treadwell, President of NZIF. 

The organisations believe that more can be done to further optimise these fees and charges over time and have proposed to the Minister that this work continue. 

“Foresters are committed to working with government to create a well‑functioning ETS that delivers climate benefits and investor confidence. We have further work to do to optimise the costs of technical platforms that the ETS runs on, and to future-proof these services so that they can continue to operate fairly over time”, says Te Kapunga Dewes, Chair of NPaT. 

However, the sector highlights concern with the proposal for mandatory Land Use Capability (LUC) assessments, which could add unnecessary cost and uncertainty.

“Requiring foresters to fund their own LUC checks creates another barrier in front of new planting, particularly for smaller investors. It’s an unfair restriction on afforestation and creates an environmental own-goal of discouraging more carbon sequestration through forestry”, says Peter Davies-Colley, Past-President of NZFFA.

“Our objective throughout this process has been to ensure that foresters are paying their fair share for efficient, reasonable and transparent administrative services. We believe the proposal released today is fairer than that proposed in 2023 and more appropriately reflects the costs of administration”, says Andrew Cushen, Chief Executive of CFA. 

The five organisations encourage foresters to have their say in the consultation, which opens today.

Media contact: 

Jen Nolan
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