Climate Change Response (Emissions Trading Scheme—Forestry Conversion) Amendment Act 2025
Checking for alerts... Loading...
Climate Change Response (Emissions Trading Scheme—Forestry Conversion) Amendment Act 2025
Public Act |
2025 No 52 |
|
Date of assent |
23 September 2025 |
|
Commencement |
see section 2 |
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Climate Change Response (Emissions Trading Scheme—Forestry Conversion) Amendment Act 2025.
2 Commencement
(1)
This Act comes into force on 31 October 2025, except as provided in subsections (2) and (3).
(2)
Sections 6, 7, 10, 11, and 13 come into force on 24 September 2025.
(3)
Subpart 4B of Part 5, as inserted by section 17, and all other provisions that relate to LUC class 6 land permits, to the extent that they do so, that have not come into force under subsection (2) come into force on 1 January 2026.
Section 2: editorial change made by the PCO, on 15 October 2025, under sections 86(1) and 87(m) of the Legislation Act 2019 (2019 No 58).
3 Principal Act
This Act amends the Climate Change Response Act 2002.
Part 1 Restrictions on registration as participant (forestry conversions)
4 Section 3A amended (Treaty of Waitangi (Te Tiriti o Waitangi))
After section 3A(b)(xvia), insert:
(xviab)
section 190KZE (regulations for changing annual hectare limit):
5 Section 3B amended (Consultation about certain regulations, orders, and notices)
After section 3B(1)(oa), insert:
(oab)
section 190KZE (regulations for changing annual hectare limit):
6 Section 4 amended (Interpretation)
(1)
In section 4(1), insert in their appropriate alphabetical order:
25% allowance, in relation to an individual farm, means an area or areas of restricted forest land that are in total up to 25% of all areas of LUC class 1–6 land within the farm boundary
actively farmed, in relation to a record of title, means that all or part of the land described in a record of title is in use for farming purposes
adjacent, in relation to land to which 2 or more records of title relate, means land that shares a boundary even if separated by roads, paper roads, streams with esplanade reserves, or other narrow zones of separation, provided that those features do not separate the land into land owned by different persons or entities
annual hectare limit, in relation to a calendar year, means the hectare limit for that year as determined under section 190KH
arable land use means the use of land to grow any of the following crops for harvest:
(a)
grain cereal, legumes, or pulse grain:
(b)
herbage seed:
(c)
oilseed:
(d)
maize grain, maize silage, cereal silage, or mangels:
(e)
crops grown for seed multiplication
ballot means a first ballot or a second ballot conducted by the EPA in accordance with subpart 4B of Part 5
Crown afforestation land means Crown-owned land that is made available for afforestation, other than land that is used by Landcorp Farming Limited for farming purposes or land administered under the Crown Pastoral Land Act 1998
district plan has the meaning given in section 43AA of the Resource Management Act 1991
erosion-prone land means land that is spatially identified as a high or severe erosion risk layer in a regional plan or district plan
ETS application means an application—
(a)
under section 57 to be registered as a participant in respect of an activity of standard forestry or permanent forestry; or
(b)
under section 182C(3) to add any carbon accounting area or areas to the post-1989 forest land in respect of which the applicant is recorded as a participant
exempt Māori land means any of the following:
(a)
Māori customary land:
(b)
Māori freehold land:
(c)
General land owned by Māori that—
(i)
was previously Māori freehold land, but ceased to have that status under an order of the Māori Land Court made on or after 1 July 1993 or Part 1 of the Maori Affairs Amendment Act 1967; and
(ii)
is beneficially owned by the persons, or by the successors who are members of the preferred classes of alienees, who beneficially owned the land immediately before the land ceased to be Māori land:
(d)
land held by a post-settlement governance entity, if the land was acquired—
(i)
as redress for the settlement of Treaty of Waitangi claims; or
(ii)
by the exercise of rights under a Treaty settlement:
(e)
land vested in the Māori Trustee that—
(i)
is constituted as a Māori reserve by or under the Maori Reserved Land Act 1955; and
(ii)
remains subject to that Act:
(f)
land set apart as a Māori reservation under Part 17 of Te Ture Whenua Maori Act 1993:
(g)
a reserve under the Reserves Act 1977 that, under a Treaty settlement, is managed wholly or jointly by a Treaty settlement entity:
(h)
land that forms part of a natural feature that has been declared under an Act to be a legal entity or person (including Te Urewera land within the meaning of section 7 of the Te Urewera Act 2014):
(i)
the maunga listed in section 10 of the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014
farm boundary, in relation to an individual farm, means—
(a)
the boundary of the land described in the record of title; or
(b)
if the farm consists of land described in more than 1 record of title, the outer boundary encompassing all of the adjacent land described in the records of title
farming purposes means land that is in—
(a)
arable land use; or
(b)
horticultural land use; or
(c)
pastoral land use; or
(d)
any combination of the above
first ballot means the first ballot conducted in a calendar year
General land owned by Māori has the meaning given in section 4 of Te Ture Whenua Maori Act 1993
horticultural land use means the use of land to grow food or beverage crops for human consumption (other than arable crops) or flowers for commercial supply
individual farm means land that—
(a)
includes LUC class 1–6 land; and
(b)
is actively farmed; and
(c)
is described in a record of title or in more than 1 record of title for adjacent land; and
(d)
is owned by the same person
land use capability classification means the classification of land using the land use capability class system—
(a)
that is published on an Internet site maintained by or on behalf of the New Zealand Institute for Bioeconomy Science Limited; and
(b)
as amended and published on that Internet site from time to time
LUC class 1–6 land means land identified as land use capability class 1, 2, 3, 4, 5, or 6—
(a)
on the NZLRI map; or
(b)
by a property-scale assessment undertaken in accordance with any methodology specified in regulations
LUC class 6 land means land identified as land use capability class 6—
(a)
on the NZLRI map; or
(b)
by a property-scale assessment undertaken in accordance with any methodology specified in regulations
LUC class 6 land permit means a permit issued by the EPA under subpart 4B of Part 5
Māori customary land has the meaning given in section 4 of Te Ture Whenua Maori Act 1993
Māori freehold land has the meaning given in section 4 of Te Ture Whenua Maori Act 1993
mapped land means land that is included on the NZLRI map
NZLRI map means the map or maps provided in the New Zealand Land Resource Inventory—
(a)
that are published on an Internet site maintained by or on behalf of the New Zealand Institute for Bioeconomy Science Limited; and
(b)
as amended and published on that Internet site from time to time
pastoral land use means the use of land for the grazing of livestock
post-settlement governance entity—
(a)
means a body corporate or the trustees of a trust established, for the purpose of receiving redress in the Treaty settlement of a claimant group,—
(i)
by that group; or
(ii)
by or under an enactment or order of a court; and
(b)
includes—
(i)
an entity established to represent a collective or combination of claimant groups; and
(ii)
an entity controlled by an entity referred to in paragraph (a); and
(iii)
an entity controlled by a hapū to which redress has been transferred by an entity referred to in paragraph (a)
record of title has the meaning given in section 5(1) of the Land Transfer Act 2017
regional plan has the meaning given in section 43AA of the Resource Management Act 1991
Registrar-General has the meaning given to Registrar in section 5(1) of the Land Transfer Act 2017
restricted forest land means post-1989 forest land that is LUC class 1–6 land and meets the following:
(a)
the land was not forest land on 31 October 2025:
(b)
the forest species on the land are predominantly exotic forest species:
(c)
the land is not—
(i)
exempt Māori land; or
(ii)
erosion-prone land; or
(iii)
unmapped land; or
(iv)
unfarmed land; or
(v)
Crown afforestation land
roll-over limit means the prescribed proportion of the annual hectare limit for a calendar year that is the maximum that can be reallocated from the second ballot of that year to the next calendar year
second ballot means the second ballot conducted in a calendar year
small application, in relation to a LUC class 6 land permit, means an application for a permit relating to no more than the number of hectares of LUC class 6 land prescribed as the maximum for a small application
standard duration of a LUC class 6 land permit means the duration set out in section 190KY(1)
Treaty settlement means—
(a)
a Treaty settlement Act; or
(b)
a Treaty settlement deed
Treaty settlement Act means—
(a)
an Act listed in Schedule 3 of the Treaty of Waitangi Act 1975; or
(b)
any other Act that provides redress for Treaty of Waitangi claims, including Acts that provide collective redress or participation arrangements for claimant groups whose claims are, or are to be, settled by another Act, including—
(i)
the Maori Commercial Aquaculture Claims Settlement Act 2004:
(ii)
the Ngā Mana Whenua o Tāmaki Makaurau Collective Redress Act 2014:
(iii)
the Nga Wai o Maniapoto (Waipa River) Act 2012:
(iv)
the Ngati Tuwharetoa, Raukawa, and Te Arawa River Iwi Waikato River Act 2010:
(v)
the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992 and secondary legislation that gives effect to section 10 of that Act and is made under Part 9 of the Fisheries Act 1996
Treaty settlement deed—
(a)
means a deed or other agreement that—
(i)
has been signed by or on behalf of a Minister of the Crown and representatives of a group of Māori; and
(ii)
is in settlement of the claims of that group or in express anticipation, or on account, of that settlement; and
(b)
to avoid doubt, includes a deed or other agreement of the kind described in paragraph (a) that relates to the claims of a collective or combination of Māori groups; but
(c)
does not include an agreement in principle or any document that is preliminary to a signed and ratified deed
Treaty settlement entity means any of the following:
(a)
a post-settlement governance entity:
(b)
a board, trust, committee, authority, or other body, incorporated or unincorporated, that is recognised in or established under any Treaty settlement Act:
(c)
an entity or a person that is authorised by a Treaty settlement Act to act for a natural feature with legal personhood:
(d)
Te Ohu Kai Moana or a mandated iwi organisation (as those terms are defined in section 5(1) of the Maori Fisheries Act 2004):
(e)
an iwi aquaculture organisation (as defined in section 4 of the Maori Commercial Aquaculture Claims Settlement Act 2004)
unfarmed land, in relation to a record of title that is the subject of an ETS application, means that no land described in the record of title—
(a)
has been used for farming purposes in the 5-year period before the ETS application; and
(b)
is LUC class 1–6 land that—
(i)
is forest land; and
(ii)
contains predominantly exotic forest species planted in the 5-year period after use of the land for farming purposes ceased
unmapped land means any land that is not included on the NZLRI map
(2)
In section 4(1), replace the definition of permanent forestry with:
permanent forestry means an activity listed in Part 1A of Schedule 4
(3)
In section 4(1), replace the definition of standard forestry with:
standard forestry means an activity listed in Part 1 of Schedule 4
(4)
After section 4(7), insert:
(8)
To avoid doubt, unmapped land ceases to be excluded from the definition of restricted forest land at the time that the land is included on the NZLRI map.
7 Section 30M amended (Regulations about infringement offences)
In section 30M(1)(a)(i), replace “132(1)(a), (b), and (f) to (i),”
with “132(1)(a), (b), (ea), and (f) to (i), 133(1)(ca),”
.
8 Section 132 amended (Other offences)
After section 132(1)(e), insert:
(ea)
knowingly fails to keep records as required by section 182CD or 190KP; or
9 Section 133 amended (Evasion or similar offences)
After section 133(1)(c), insert:
(ca)
fails to keep records as required by section 182CD or 190KP; or
10 Section 167 amended (Regulations relating to fees and charges)
After section 167(2)(b), insert:
(ba)
who enters an application into a ballot for a LUC class 6 land permit; or
11 New sections 167A and 167B inserted
After section 167, insert:
167A Regulations relating to methodologies and mapping standards
(1)
The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for 1 or more of the following purposes:
(a)
prescribing a methodology or methodologies for making a property-scale assessment of the land use capability classification of land described in a record of title:
(b)
authorising the EPA to issue mapping standards specifying—
(i)
how land that is to be assessed through property-scale assessment must be mapped; and
(ii)
how land must be mapped for any other purpose in relation to section 182AB, 182C(5)(a)(ii), 182C(5A), or 182CA to 182CD, or to subpart 4A or 4B of Part 5.
(2)
Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
(3)
If regulations authorise the EPA to issue mapping standards under subsection (1)(b),—
(a)
those standards are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements); and
(b)
the regulations must contain a statement to that effect.
| Legislation Act 2019 requirements for secondary legislation referred to in subsection (1)(a) | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114 | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
| Legislation Act 2019 requirements for secondary legislation referred to in subsection (1)(b) | ||||
| Publication | The maker must publish it in accordance with the Legislation (Publication) Regulations 2021, unless it is published by PCO | LA19 ss 69, 73, 74(1)(aa) | ||
| Presentation | The Minister must present it to the House of Representatives, unless it is excluded by section 114(2) of the Legislation Act 2019 | LA19 s 114 | ||
| Disallowance | It may be disallowed by the House of Representatives, unless it is excluded by section 115 of the Legislation Act 2019 | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
167B Regulations relating to LUC class 6 land permits
(1)
The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for 1 or more of the following purposes:
Ballot requirements
(a)
specifying the time frames within which the first and second ballots for each year are to be conducted:
(b)
specifying the time frames within which applications to enter the first ballot or the second ballot may be made each year:
(c)
specifying how the total number of hectares in the annual hectare limit must be apportioned between the first and second ballots:
(d)
prescribing how much of the annual hectare limit must be reserved for small applications in each of the first and second ballots:
(e)
specifying the proportion of the annual hectare limit that comprises the roll-over limit:
(f)
prescribing the number of hectares of LUC class 6 land in respect of which an application is made that determines whether an application is to be treated as a small application:
(g)
requiring an application for a LUC class 6 land permit to include a map of the applicant’s LUC class 6 land prepared in accordance with any mapping standard issued by the EPA:
(h)
requiring a permit application to identify the applicant’s LUC class 6 land in respect of which the application is made by reference to—
(i)
the NZLRI map; or
(ii)
a property-scale assessment undertaken in accordance with any mapping standard issued by the EPA:
(i)
requiring a person who undertook a property-scale assessment for inclusion in an application for a LUC class 6 land permit to provide information to the EPA about the assessment when requested to do so, for example, a statement that the person undertook the assessment in accordance with any methodology specified in regulations:
Requirements after ballot conducted
(j)
prescribing the process the EPA must follow after a ballot is conducted, including—
(i)
determining whether an application meets the conditions of eligibility; and
(ii)
notifying applicants whose applications are successful:
Other matters
(k)
specifying the circumstances in which part of the annual hectare limit of LUC class 6 land in a ballot or the unused hectares of an expired or a cancelled permit may be transferred to or added to a later year’s ballot:
(l)
prescribing whether, how, and how many hectares that are not included in the LUC class 6 permits that are issued as the result of a ballot may be reallocated (except as provided in section 190KK(2)(a) or (b) or section 190KL), including in either or both of the following ways:
(i)
to another ballot:
(ii)
to the allocation of hectares that are reserved or not reserved for small applications:
(m)
prescribing any other matters that are necessary to ensure the proper functioning of a ballot.
(2)
Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114 | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
12 Section 181B amended (Criteria for P90 offset application)
In section 181B(2)(f), after “under section 57”
, insert “(but need not comply with the restriction under section 182AB)”
.
13 Section 182 amended (Standard and permanent forestry on post-1989 forest land)
14 New section 182AB inserted (Restriction on registration as participant in relation to restricted forest land)
After section 182A, insert:
182AB Restriction on registration as participant in relation to restricted forest land
A person may not be registered as a participant under section 57 in respect of an activity of standard forestry or permanent forestry in relation to restricted forest land, except in accordance with subpart 4A or 4B.
15 Section 182C amended (Registration as participant in standard or permanent forestry)
Replace section 182C(5) with:
(5)
The EPA may (under this section) add a carbon accounting area to the post-1989 forest land in respect of which a person is recorded as a participant only if—
(a)
the EPA is satisfied that—
(i)
the person would (if appropriate) qualify to be registered as a participant in respect of the carbon accounting area under section 182A; and
(ii)
the carbon accounting area—
(A)
is not restricted forest land; or
(B)
for restricted forest land, is permitted to be registered in accordance with subpart 4A or 4B; or
(C)
meets subsubparagraphs (A) and (B); and
(b)
where the forest species on that land is predominantly naturally regenerated tree weeds, the EPA is satisfied that the risk of tree weed spread from the land is low.
(5A)
If an applicant identifies land in an application with reference to the land use capability class, the applicant must do so using only 1 of the following for the entire application:
(a)
the NZLRI map; or
(b)
a property-scale assessment undertaken in accordance with any methodology specified in regulations.
16 New sections 182CA to 182CD inserted
After section 182C, insert:
182CA Further requirements for ETS application in respect of LUC class 1–6 unfarmed land
(1)
This section applies to an ETS application in respect of LUC class 1–6 land that is unfarmed land.
(2)
The application must, in addition to any other requirements, be accompanied by a statutory declaration in the prescribed form that, to the best of the applicant’s knowledge, the land is unfarmed land.
182CB Further requirements for ETS application in respect of mapped land other than LUC class 1–6 land
(1)
This section applies to an ETS application in respect of mapped land other than LUC class 1–6 land.
(2)
The application must, in addition to any other requirements, identify the land to which the application applies by reference to the applicable land use capability classification shown—
(a)
on the NZLRI map; or
(b)
in a property-scale assessment undertaken in accordance with any methodology specified in regulations.
182CC Further requirements for ETS application if property-scale assessment of land used
(1)
This section applies to an ETS application if—
(a)
this Act requires the applicant to identify the land use capability classification of the land to which the application applies; and
(b)
the applicant relies on a property-scale assessment of the land to identify the land use capability classification.
(2)
The application must, in addition to any other requirements, be accompanied by a statement by the person who undertook the property-scale assessment of the land that the assessment has been carried out in accordance with any methodology specified in regulations.
182CD Retention of property-scale assessment records
An applicant must keep records of property-scale assessment of the land use capability classification of land described in a record of title for 20 years if the applicant has used them in an ETS application.
17 New subparts 4A and 4B of Part 5 inserted
After section 190K, insert:
Subpart 4A—The 25% allowance for restricted forest land
190KA Further requirements for registration as participant in relation to restricted forest land
(1)
A person may apply to be registered under section 57 as a participant in respect of an activity of standard forestry or permanent forestry in relation to restricted forest land relying on the 25% allowance.
(2)
A person who is a participant in standard forestry or permanent forestry may apply to the EPA to add any carbon accounting area or areas that include restricted forest land relying on the 25% allowance.
(3)
An application under subsection (1) or (2) must, in addition to any other requirements,—
(a)
identify the record or records of title that comprise the individual farm to which the application applies; and
(b)
identify the restricted forest land for each individual farm to which the application applies by reference to the applicable land use capability class shown—
(i)
on the NZLRI map; or
(ii)
in a property-scale assessment undertaken in accordance with any methodology specified in regulations; and
(c)
be accompanied by a statutory declaration made by the applicant, in the prescribed form, that the restricted forest land identified has not knowingly been submitted relying on the 25% allowance before, unless—
(i)
the application is submitted in accordance with section 190KB; or
(ii)
any earlier application that relied on the 25% allowance was not accepted.
(4)
If an application under subsection (1) or (2) is made in respect of an activity of standard forestry or permanent forestry that relates to holding a registered forestry right or being the leaseholder under a registered lease, the application must also include the written consent of the landowner, which must state—
(a)
the record or records of title for the individual farm to which the landowner’s consent relates; and
(b)
that the landowner consents to the inclusion of that land in the 25% allowance for that individual farm.
(5)
The EPA may register a person as a participant under section 57 in relation to an activity of standard forestry or permanent forestry relying on the 25% allowance only if the EPA is satisfied that the registration would not exceed the 25% allowance for the individual farm.
(6)
The EPA may update a participant’s record to reflect the addition of a carbon accounting area relying on the 25% allowance only if the EPA is satisfied that updating the record would not exceed the 25% allowance for the individual farm.
(7)
If the EPA has accepted an application under subsection (1) or (2), the records of title that make up the individual farm that was the subject of that application may not be varied, or included in an application under this section in relation to any other individual farm.
190KB More than one 25% allowance application permitted
A person may make more than 1 application under section 190KA unless—
(a)
the combined area of restricted forest land identified in all the applications for registration would exceed the 25% allowance; or
(b)
since the first application in respect of an individual farm,—
(i)
the ownership of the record or records of title has changed; or
(ii)
the farm boundary has changed.
190KC Notification of 25% allowance to be recorded against record of title
(1)
If the EPA registers a person as a participant under section 57 in relation to an activity of standard forestry or permanent forestry relying on the 25% allowance, the EPA must—
(a)
notify the Registrar-General that the registration relying on the 25% allowance has occurred in respect of the individual farm; and
(b)
include in the notification the details of each record of title comprising the individual farm.
(2)
If the EPA updates a participant’s record to include a carbon accounting area relying on the 25% allowance, the EPA must—
(a)
notify the Registrar-General that the update relying on the 25% allowance has occurred in respect of the individual farm; and
(b)
include in the notification the details of each record of title comprising the individual farm.
(3)
The Registrar-General must record a notice under subsection (1) or (2) against the record or records of title of the individual farm.
(4)
If land described in a record of title is subdivided and the record of title has a notice under this section recorded against it, the notice must be recorded against all records of title resulting from the subdivision.
(5)
If land described in a record of title is merged with another record of title and either record of title has a notice under this section recorded against it, the notice or notices must be recorded against the merged record of title.
190KD The 25% allowance is in addition to LUC class 6 land permit
The 25% allowance is in addition to any LUC class 6 land that may be registered using a LUC class 6 land permit issued in respect of the same individual farm.
190KE The 25% allowance is not increased if LUC class 1–6 land area increases
If the landowner of an individual farm becomes the landowner of LUC class 1–6 land adjacent to the individual farm, the 25% allowance for the individual farm does not increase.
Subpart 4B—LUC class 6 land permits
Application of this subpart
190KF Application of this subpart
This subpart applies to LUC class 6 land.
Ballots for LUC class 6 land permits
190KG Permit allocation in addition to 25% allowance
The number of hectares of LUC class 6 land that may be registered under a LUC class 6 land permit is in addition to any LUC class 6 land registered under the 25% allowance available to the permit holder under subpart 4A in relation to LUC class 6 land on the same individual farm.
190KH Annual hectare limit
The annual hectare limit of LUC class 6 land in total for the first and second ballots in a calendar year is,—
(a)
if no regulations are made under section 190KZE, 15,000 hectares; or
(b)
if regulations are made under section 190KZE, the limit specified in those regulations.
190KI Ballots for LUC class 6 land permits
(1)
Each calendar year, the EPA must issue LUC class 6 land permits by conducting 2 ballots: the first ballot and the second ballot.
(2)
Each ballot must—
(a)
be conducted so as to provide the prescribed amount of hectares that is reserved for small applications; and
(b)
be completed within any prescribed time frames.
(3)
A small application that is not drawn from a ballot before the ballot’s reserve of hectares for small applications is fully used is included in that ballot with the remaining applications in that ballot.
190KJ First ballot
(1)
The first ballot of a calendar year must include—
(a)
its prescribed portion of the annual hectare limit; and
(b)
its reserved allocation of hectares for small applications; and
(c)
any hectares reallocated to the ballot in accordance with section 190KK(2).
(2)
Any hectares that are not included in the LUC class 6 permits that are issued following the first ballot may be reallocated as prescribed in regulations.
190KK Second ballot
(1)
In addition to any hectares referred to in section 190KJ(2), the second ballot must also include—
(a)
its prescribed portion of the annual hectare limit; and
(b)
its reserved allocation of hectares for small applications; and
(c)
any hectares reallocated to the ballot in accordance with section 190KL(1).
(2)
Any hectares that are not included in the LUC class 6 permits that are issued following the second ballot may be reallocated as prescribed in regulations,—
(a)
subject to the roll-over limit; and
(b)
if reallocated to a later year, subject to no further reallocation to any later calendar year.
190KL Reallocating unused small applications hectares
(1)
If the total number of hectares included in all of the eligible small applications that are drawn from the first ballot of a calendar year does not reach the reserved allocation for small applications in that ballot, the unused hectares must be reallocated into the second ballot of the year and made available as hectares that are not reserved for small applications.
(2)
If the total number of hectares included in all of the eligible small applications that are drawn from the second ballot of a calendar year does not reach the reserved allocation for small applications in that ballot, the unused hectares must be made available in that ballot as hectares that are not reserved for small applications.
(3)
When hectares are reallocated or made available under subsection (1) or (2), they do not affect or add to—
(a)
the allocation reserved in the second ballot for small applications; or
(b)
the prescribed portion of the annual hectare limit for that ballot.
Ballot process
190KM Conditions of eligibility
To enter an application into a ballot for a LUC class 6 land permit, a person must—
(a)
specify the record or records of title comprising the land on which the LUC class 6 land to which the application relates is located; and
(b)
be the landowner of the land or provide the written consent of the landowner to make the application; and
(c)
make no more than 1 application in respect of the same record or records of title in that ballot; and
(d)
specify the number of hectares in respect of which the application is made, which must be no more than the area of LUC class 6 land contained in the record or records of title referred to in paragraph (a); and
(e)
ensure that the application—
(i)
is in the form, if any, prescribed by the EPA for that purpose; and
(ii)
is accompanied by the prescribed fee, if any; and
(iii)
provides any other prescribed information.
190KN Application ineligible if current permit includes record of title
An application for a LUC class 6 land permit is not eligible to be entered into a ballot if the application contains a record of title that is included in a LUC class 6 land permit that contains that record of title and is currently valid under section 190KY or 190KZ.
190KO Multiple applications with same record of title in common
If a record of title is included in more than 1 eligible application for a LUC class 6 land permit and one of those applications is drawn from a ballot, all remaining applications in the ballot that include that record of title become ineligible and are wholly cancelled.
190KP Retention of property-scale assessment records
An applicant must keep property-scale assessment records for 20 years if the applicant has used a property-scale assessment of the land use capability classification of land described in a record of title in an application for a LUC class 6 land permit.
190KQ Conducting ballot
The EPA must conduct a ballot by random selection—
(a)
in accordance with this Act and any regulations made under it; and
(b)
by using electro-mechanical drawing equipment or any other equipment that the EPA may determine.
190KR Review and appeal not available for decisions about entering application into ballot
There is no right of review or appeal under any of sections 144 to 146 in relation to a decision by the EPA as to whether or not to enter an application into a ballot for a LUC class 6 land permit.
Issuing permits
190KS Effect of permit being issued
(1)
A person issued a LUC class 6 land permit may apply to be registered as a participant in relation to an activity of standard or permanent forestry in respect of LUC class 6 land or to add a carbon accounting area or areas to the post-1989 forest land in respect of which the person is recorded as a participant, as the case may be, up to the maximum number of hectares in respect of the LUC class 6 land permit.
(2)
The person may apply to register, or add, fewer hectares than the permit allows, but must not register or add more.
190KT EPA may decline application
(1)
The EPA may decline an application if the application does not meet the conditions of eligibility set out in section 190KM.
(2)
The EPA may decline an application partially in the circumstances set out in section 190KU.
190KU Exceeding remaining available hectares
If the final successful application in a ballot partially exceeds the remaining hectares available for that ballot, the EPA may issue a LUC class 6 land permit to the applicant for those remaining hectares but not the full number of hectares sought in the application.
Use of LUC class 6 land permit
190KV Using LUC class 6 land permit
(1)
The holder of a LUC class 6 land permit must meet the requirements, conditions, and criteria under this Act in relation to applying for emissions trading scheme registration in respect of the LUC class 6 land, or adding that land to land that is already registered in the emissions trading scheme, as the case may be.
(2)
An application on the basis of a LUC class 6 land permit must also demonstrate to the EPA that the post-1989 forest land that the applicant seeks to register—
(a)
is contained within the record or records of title to which the LUC class 6 land permit relates; and
(b)
has an area equal to, or less than, the area of land in hectares that the LUC class 6 land permit provides.
190KW Permit not transferable to other person
(1)
Except as provided in this section, a permit is unusable if it is purported to be transferred to a person other than the person specified in the LUC class 6 land permit application.
(2)
If the person who is issued a LUC class 6 land permit dies while the permit is valid, the person to whom their estate in the LUC class 6 land is transmitted becomes the permit holder.
(3)
If an unincorporated body is issued a LUC class 6 land permit, the permit remains usable by the body while at least 60% of the members of the body are the same as when the permit was issued to the body.
(4)
In this section, a permit is usable if it may be used to register forest land in the emissions trading scheme.
190KX Permit not transferable to other land or when land subdivided
(1)
A LUC class 6 land permit cannot be used to register forest land in the emissions trading scheme other than land specified in the application for the LUC class 6 land permit.
(2)
If land described in a record or records of title to which a LUC class 6 land permit relates is subdivided, the permit is no longer valid.
LUC class 6 land permit duration
190KY LUC class 6 land permit duration
(1)
The standard duration of a LUC class 6 land permit is that it is valid until the close of 31 December of the year that is 3 full years after the year in which the permit was issued.
(2)
However, a valid LUC class 6 land permit remains valid until a decision to approve or decline an ETS application to register or add land is made, if—
(a)
the permit is valid at the time the application is made; and
(b)
the application is full and complete; and
(c)
the application is made within the standard duration of a LUC class 6 land permit.
(3)
This section is subject to sections 190KZ, 190KZA, and 190KZB.
190KZ Extension of permit duration
The EPA may accept an ETS application using a LUC class 6 land permit until the close of 31 December of the year that is 6 full years after the year in which the permit is issued if the EPA is satisfied that a temporary adverse weather event or similar circumstances materially disrupted the applicant’s ability to register forest land before the expiry date.
190KZA Expiry of LUC class 6 land permit through use
(1)
When the EPA approves or declines either of the following that is made using a LUC class 6 land permit, the permit expires:
(a)
an application under section 57 to be registered as a participant:
(b)
an application under section 182C(5) to add a carbon accounting area to the post-1989 forest land in respect of which a person is recorded as a participant.
(2)
The unused or partially unused area of an expired permit is not—
(a)
able to be used by the holder under the expired permit; or
(b)
added to future ballots, unless regulations allow this.
190KZB Holder of LUC class 6 land permit may cancel permit
(1)
The holder of a LUC class 6 land permit may cancel the permit by notifying the EPA in the prescribed form.
(2)
The permit is cancelled on the date that the EPA receives the notification.
(3)
If the permit holder is not the landowner of the land to which the permit relates,—
(a)
the permit holder, when notifying the EPA, must provide the EPA with the landowner’s last known contact details; and
(b)
the EPA must take reasonable steps to notify the landowner, using the contact details provided in accordance with paragraph (a).
EPA may report on ballots
190KZC EPA may report publicly about ballots
The EPA may report publicly on processes under this subpart, including information regarding receiving and approving applications and allocating the annual hectare limit.
Review of annual hectare limit
190KZD Review of annual hectare limit
(1)
The Minister of Climate Change and the Minister of Agriculture, in consultation with the Minister of Forestry, may initiate a review of the annual hectare limit.
(2)
Reviews may take place in 2028, 2034, and at intervals of 5 years after 2034.
190KZE Regulations for changing annual hectare limit
(1)
The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations to change the annual hectare limit.
(2)
The Minister may recommend the making of those regulations if that Minister and the Minister of Agriculture consider that the annual hectare limit should change, after they have undertaken consultation in accordance with sections 3A(b)(xviab) and 3B(1)(oab) and have considered the effect on the following matters of changing the limit:
(a)
meeting emissions budgets and national emission reduction targets:
(b)
the proper functioning of the emissions trading scheme:
(c)
the pace and scale of current and projected rural land use change to forestry:
(d)
economic considerations related to land use change:
(e)
any other matters the Ministers consider relevant.
(3)
Regulations made under this section must state which ballot the changed annual hectare limit will apply from.
(4)
Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
| Legislation Act 2019 requirements for secondary legislation made under this section | ||||
| Publication | PCO must publish it on the legislation website and notify it in the Gazette | LA19 s 69(1)(c) | ||
| Presentation | The Minister must present it to the House of Representatives | LA19 s 114 | ||
| Disallowance | It may be disallowed by the House of Representatives | LA19 ss 115, 116 | ||
| This note is not part of the Act. | ||||
18 Section 192B amended (Criteria for P89 offset application)
In section 192B(2)(f)(ii), replace “section 182A”
with “sections 182A and 182AB”
.
Part 2 Other amendments
19 Schedule 1AA amended
In Schedule 1AA,—
(a)
insert the Part set out in the Schedule of this Act as the last Part; and
(b)
make all necessary consequential amendments.
Schedule New Part 5 inserted into Schedule 1AA
Part 5 Provisions relating to Climate Change Response (Emissions Trading Scheme—Forestry Conversion) Amendment Act 2025
46 Interpretation
In this Part,—
amendment Act means the Climate Change Response (Emissions Trading Scheme—Forestry Conversion) Amendment Act 2025
clear interest, in relation to land, means—
(a)
ownership of the land; or
(b)
a registered lease or a registered forestry right, or an agreement to obtain a lease or a forestry right; or
(c)
a conditional or unconditional sale and purchase agreement for the purchase of the land; or
(d)
a written offer to purchase the land and—
(i)
a written indication of the seller’s intention to negotiate further; or
(ii)
a written acceptance of the offer
commencement date means 31 October 2025
ETS applicant means a person who has made an application (and ETS application has a corresponding meaning)—
(a)
under section 57 to be registered as a participant in respect of an activity of standard forestry or permanent forestry; or
(b)
under section 182C(3) to add any carbon accounting area or areas to the post-1989 forest land in respect of which the person is recorded as a participant
qualifying forestry investment means any of the following:
(a)
an emissions ruling under section 107 that land is eligible to be post-1989 forest land has been applied for or has been made by the EPA:
(b)
in relation to the establishment of a forest,—
(i)
a resource consent has been applied for or has been granted under the Resource Management Act 1991:
(ii)
a notice has been given under the Resource Management (National Environmental Standards for Commercial Forestry) Regulations 2017 to a local authority in relation to a permitted activity:
(iii)
a notice has been given under section 87BB(1)(d) of the Resource Management Act 1991:
(c)
investment in preparation for afforestation has been made, for example, ordering seedlings or undertaking land preparation for forestry:
(d)
a recognised local or central government grant to afforest land has been received:
(e)
a third party has been contracted to undertake due diligence for the purpose of afforesting land.
47 Amendment Act does not apply to ETS applications received before commencement date
(1)
The EPA must apply this Act to an ETS application received before the commencement date as if the amendment Act had not been enacted.
(2)
If an ETS application received by the EPA before the commencement date is the subject of any of the following (commenced either before or after the commencement date), they must be undertaken as if the amendment Act had not been enacted:
(a)
a review under section 144:
(b)
an appeal under section 145:
(c)
an appeal under section 146.
48 Transitional exemptions for LUC class 1–6 land
(1)
The EPA must determine that LUC class 1–6 land is not restricted forest land if it is satisfied that an ETS applicant has submitted a complete ETS application by 31 December 2027 that includes evidence that the applicant—
(a)
had a clear interest in the LUC class 1–6 land before 4 December 2024; and
(b)
has made or obtained 1 or more qualifying forestry investments in relation to the LUC class 1–6 land in the period from 1 January 2021 to 4 December 2024.
(2)
The EPA may determine that LUC class 1–6 land is not restricted forest land if it is satisfied that—
(a)
an ETS applicant has submitted a complete ETS application by 31 December 2027 that includes evidence that the applicant—
(i)
had a clear interest in the LUC class 1–6 land before 4 December 2024; and
(ii)
has made or obtained 1 or more qualifying forestry investments in relation to the LUC class 1–6 land before 1 January 2021; and
(b)
the ETS applicant was not able to make an ETS application at an earlier date due to circumstances beyond their control.
(3)
The EPA may determine that LUC class 1–6 land is not restricted forest land if it is satisfied that—
(a)
an ETS applicant has submitted a complete ETS application by 31 December 2030 that includes evidence that the applicant—
(i)
had a clear interest in the LUC class 1–6 land before 4 December 2024; and
(ii)
has made or obtained 1 or more qualifying forestry investments in relation to the LUC class 1–6 land in the period from 1 January 2021 to 4 December 2024; and
(b)
the ETS applicant was not able to make an ETS application at an earlier date due to circumstances beyond their control.
Legislative history
10 June 2025 |
Introduction (Bill 174–1) |
|
24 June 2025 |
First reading and referral to Environment Committee |
|
13 August 2025 |
Reported from Environment Committee (Bill 174–2) |
|
19 August 2025 |
Second reading |
|
16 September 2025 |
Committee of the whole House, third reading |
|
23 September 2025 |
Royal assent |
This Act is administered by the Ministry for the Environment.
Versions
Climate Change Response (Emissions Trading Scheme—Forestry Conversion) Amendment Act 2025
RSS feed link copied, you can now paste this link into your feed reader.