New Zealand has announced stricter regulations to limit the conversion of farmland into forestry for carbon credits, aiming to balance environmental goals with agricultural productivity.
The new rules, revealed on Wednesday in Wellington, will prohibit forest owners from registering plantations on highly productive farmland under the Emissions Trading Scheme (ETS) and cap annual registrations on less fertile land at 15,000 hectares. These measures, set to take effect in October 2025, fulfill the center-right government’s election promise to safeguard food production and address concerns over large-scale farmland conversions.
“This policy helps protect our most productive farmland while enabling sustainable forestry growth,” said Agriculture Minister Todd McClay. “Landowners will still have the flexibility to make informed land-use decisions that boost profitability and benefit the environment.”
New Zealand’s ETS previously allowed polluters to offset emissions by purchasing forestry-generated carbon credits, leading to a surge in land—often farms—being repurposed for tree planting. This trend faced pushback from farming and meat industries, which saw it as a threat to agriculture.
Federated Farmers, a key industry group, welcomed the move, stating that it would “stop the relentless march of pine trees across our productive farmland.” The cap on registrations is seen as a step toward preventing large-scale carbon farming.
Climate Change Minister Simon Watts emphasised that the changes provide clarity for ETS participants and balance the roles of forestry and agriculture in New Zealand’s climate strategy.
“Forestry and agriculture are both crucial to our climate goals,” Watts said. “These measures ensure we foster prosperous communities, increase primary production and exports, and sustain economic growth while meeting our environmental commitments.”
