Smarter Rules Cut Costs and Support New Zealand Forestry

The ETS Registry fee has been reduced to $10.28 per hectare per year, down from $30.25, marking a 66 per cent drop since the National-led Government took office.

New Zealand's forestry sector is poised to gain from regulatory changes designed to make compliance simpler, reduce costs, and maintain environmental standards. Forestry Minister Todd McClay said the sector is a major contributor to the economy, supporting 42,000 jobs and generating $6.2 billion in export earnings last year.

The Government has taken steps to ensure legislation supports forestry operators without unnecessary burdens. Key actions include lowering the costs of participating in the Emissions Trading Scheme (ETS) Registry, updating the National Environmental Standards for Commercial Forestry (NES-CF), and simplifying the legal harvest assurance system.

Lower Costs for Emissions Compliance

The ETS Registry fee has been reduced to $10.28 per hectare per year, down from $30.25, marking a 66 per cent drop since the National-led Government took office. This adjustment addresses concerns about excessive charges that previously led to legal challenges. Changes also include lower ongoing costs for mature forests and the introduction of eight new targeted fees that better reflect the services used by forestry operators.

Streamlined Environmental Standards

The NES-CF has been updated to reduce unnecessary regulatory burdens while still managing environmental risks. Changes aim to make council rules more consistent, so forestry operations can meet obligations without being held back by overly strict or inconsistent regulations. Focused amendments ensure rules target areas where risks, such as slash mobilisation, are most likely, rather than applying blanket measures.

Simpler Legal Harvest Assurance

The legal harvest assurance system will move from a mandatory model introduced in 2023 to a voluntary, fit-for-purpose framework. The redesign allows exporters to access government-backed assurance to confirm products were legally harvested. Feedback from consultation highlighted the need for a system that supports international competitiveness without adding extra complexity or cost, and the Government has acted on this input.

Mr McClay said these changes reflect a balance between environmental responsibility and operational efficiency, providing tools for the forestry sector to thrive while maintaining public trust. The reforms are part of wider Government efforts to cut red tape across primary industries, allowing New Zealand's forestry sector to grow sustainably and compete effectively in global markets.