How does the emissions trading scheme affect a small forestry owner?

The New Zealand Emissions Trading Scheme under the Climate Change Response Act 2002 allows forest owners who register eligible forest land to earn New Zealand Units for carbon stored as their trees grow. Registration involves obligations, such as reporting and record keeping, and if you later harvest or clear the forest, you may have an obligation to surrender units, especially for post-1989 forests. The obligations can attach to the land, meaning that a buyer inherits them and it affects the value, so you should disclose them and manage them in the sale agreement. Permanent forest sink initiatives have different rules, with covenants recorded on the title. Speak with the Ministry for Primary Industries and get legal and tax advice before registering, because the rules are technical and change.