Full farm-to-forest conversion limits in place

Legislation to protect productive farmland by limiting farm-to-forest conversions is now in place.

The Climate Change Response (Emissions Trading Scheme - Forestry Conversion) Amendment Act came into effect on 31 October 2025 and forest owners will notice these changes in the Emissions Trading Scheme (ETS) system from this week.

The legislation restricts exotic forests from entering the ETS on Land Use Capability (LUC) class 1-6 land - New Zealand’s most productive soils - with certain exceptions, including for Māori-owned land and erosion-prone areas.

Farmers will retain flexibility to plant some land should they choose.

Transitional exemptions from the restrictions are available for those who can demonstrate both a clear interest in the land and a qualifying forestry investment made between 1 January 2021 and 4 December 2024.