Applications for the first ballot to register exotic forestry on marginal land in the New Zealand Emissions Trading Scheme (ETS) open today.
The ballot is part of updated ETS forestry rules that took effect on 31 October last year.
Director forestry operations at Te Uru Rākau – New Zealand Forest Services, John Saunders says the changes establish a permit allocation system and clarify where exotic forestry can register in the ETS.
From 19 June to 22 July, the Ministry for Primary Industries (MPI) will run the first of two annual ballots to allocate permits covering up to 15,000 hectares of Land Use Capability (LUC) Class 6 land each year. This non-arable land is generally less suitable for productive uses than LUC Classes 1 to 5.
Each ballot allocates 7,500 hectares, with 2,000 hectares reserved for small applications of up to 100 hectares. Successful permits enable registration of post-1989 forests on LUC Class 6 land in the ETS.
Under 2025 reforms, landowners may also plant and register up to 25% of their LUC Class 1 to 6 land in exotic forestry within the ETS. Land entered via ballot permits sits outside this allowance.
“The updated legislation establishes a structured allocation process and provides clearer eligibility criteria,” Mr Saunders says.
“Permits are allocated through a ballot system based on a random draw, and a reserved category for smaller applications aims to enable participation across a range of project sizes.”
