Strengthening the future of NZ forestry

New Zealand’s forestry sector is set to benefit from sensible regulation to help meet environmental obligations whilst lowering the cost of compliance, Forestry Minister Todd McClay says.

“The wood and forestry industries are important contributors to New Zealand’s economy, supporting 42,000 jobs. Last year the sector contributed $6.2 billion worth of export earnings,” Mr McClay says.

“It’s prudent we set appropriate legislation and provide the tools that support the sector – and this Government has been fixing the basics to do exactly that.”

Recent action from the Government includes:

Further reducing the costs of participating in the Emissions Trading Scheme (ETS) Registry
Updating the National Environmental Standards for Commercial Forestry (NES-CF) with targeted changes to reduce the regulatory burden for forestry operators, while ensuring environmental risks continue to be managed
Simplifying the legal harvest assurance to be voluntary and fit-for-purpose to better meet current and future business needs

“The last Labour Government wanted forest owners to pay an excessive $30.25 per hectare per year to enter the ETS, forcing the sector to take legal action,” Mr McClay says.

“Following consultation we’re lowering that, for a second time, to $10.28.

“This represents a 66 per cent reduction in the annual charge since the National-led Government took office. We have been working to ensure the system is fair, efficient and proportionate.”

The updated structure also lowers ongoing costs for mature forests, addressing concerns about indefinite charges, and eight new targeted fees will be introduced to better align costs with services used.

The Government has been focussed on cutting red tape for farmers and growers and this includes forestry.

“Through targeted changes to the NES-CF we are making council rules more consistent, so the commercial forestry industry can meet their environmental obligations without being unnecessarily held back.

“The current standard was designed to provide a nationally consistent framework for managing the environmental effects of plantation forestry. However, changes have allowed councils to bypass that intent by imposing more stringent rules without clear evidence or justification.
“This change focuses on risk and will mean rules are targeted to sites where slash is most likely to mobilise and cause harm.”

The forestry sector will also benefit from a simpler, fit-for-purpose legal harvest assurance system, with the Government agreeing to a model and to develop legislation to replace the 2023 mandatory system to better meet current and future business needs.

“Consultation feedback was clear; that there is a better way to support legal harvest assurance without adding unnecessary cost and complexity. We have listened,” Mr McClay says.

The redesigned model allows exporters to voluntarily access a government assurance to help underpin their work in international markets and competitiveness, by providing consumers confidence the products were harvested legally.

Note to editor:

More than 887,000 hectares of post 1989 forest land are registered in the ETS, involving over 5,300 participants. Keeping the system efficient and affordable remains critical to supporting emissions reductions and sector confidence.
The new cost structure will take effect from 1 July 2026.

Further detail on the changes: Review of forestry in the Emissions Trading Scheme cost recovery settings | NZ Government