New Zealand Government Passes Bill to Protect Farmland and Forestry in Climate Change Response

The Government has delivered on a key election commitment with the passing of the Climate Change Response (Emissions Trading Scheme Forestry Conversions) Amendment Bill, Minister of Agriculture and Forestry Todd McClay and Minister of Climate Change Simon Watts announced yesterday.

This Bill strikes the right balance between protecting New Zealand’s most productive farmland and maintaining confidence in the Emissions Trading Scheme (ETS), Mr McClay says.

We campaigned on stopping the wholesale conversion of farms into pine forests, and we have delivered.

This Bill restores balance. It protects food production, supports rural communities, and ensures foresters can continue to invest with confidence.

Both farming and forestry are important to our regional economies and we are working hard to support both sectors to create jobs and grow exports to benefit all New Zealanders, Mr McClay says.

Key changes in the Bill include: Limits on exotic forestry registrations for actively farmed Land Use Capability (LUC) classes 1–6 — New Zealand’s most productive farmland.

Flexibility for farmers to plant and register up to 25% of their productive land in forestry.

Exemptions for certain classifications of Māori owner land.

Two annual ballots allowing up to 15,000 hectares of new exotic forestry on LUC 6 land.

Transitional provisions for those who invested in forestry in good faith before December 2024.

A review of the annual hectare limit in 2028, providing an additional safeguard to ensure the settings are working as intended.

These are practical, common-sense measures. They back farmers to keep producing food, while also supporting foresters and ensuring the ETS continues to deliver credible climate outcomes, Mr McClay says.

Climate Change Minister Simon Watts says the changes strengthen the ETS by providing certainty for both foresters and farmers – not just today, but for the long term.

We are ensuring the ETS remains fit for purpose — rewarding good land use choices while safeguarding rural livelihoods. This Bill puts sensible limits in place that support meeting our climate commitments, Mr Watts says.

Mr McClay says the Government has heard the calls by landowners on the need to strengthen pest, weed, and fire management plans for forests. There is work underway, we are committed to ensure foresters manage risk, continue to improve management practices and give rural communities and landowners greater assurance.

The Government is backing rural New Zealand by restoring certainty, protecting farmland, and supporting farmers and growers to get on with producing high-quality, safe sustainable food and fibre.

When rural communities do well, it means stronger jobs, incomes, and opportunities for every New Zealander, Mr McClay says.

The legislation will enter into force from October 2025.