Home NZ Emissions Trading Post 1989 Forestry Who owns the credits

Post 1989 :: Who Owns the Credits

Land and forestry are often separate due to a forest right under the Forest Rights Registration Act.

Where post-1989 forest is not owned solely by the landowner, that forest land will still be able to be entered into the ETS. However, if the participant is not the landowner then he or she must hold a registered forestry right or registered lease.

Previously deforested land will be able to enter the ETS and receive NZUs, provided all the relevant liabilities have been remitted. Similarly, forest owners or registered forestry right holders can leave the ETS as long as all the units received for their post-1989 forest have been repaid.

Where the land and post-1989 forest are owned by the same person, the landowner will be responsible for both credits and liabilities. Where the post-1989 forest is not owned by the landowner but is held through a registered forestry right or registered lease, the holder of that forestry right or lessee will be the participant. In such a case, the holder/lessee and landowner will need to provide written confirmation to the administering agency that both parties agree to the forest entering the ETS.

This arrangement will provide an opportunity for the landowner and the holder/lessee to reach an agreement on the sharing of the credits and liabilities. When a registered forestry right or registered lease is terminated or expires, the point of obligation will automatically revert to the landowner, who will then take on the obligations and rights.

Parties who do not currently have a registered forestry right or registered lease will be able to establish either of these and become eligible to enter the ETS.