Alt-F Reset: Examining

the drivers of forestry

in New Zealand
Summary document
April 2025
This document may be copied provided that the source is acknowledged. This report and
other publications by the Parliamentary Commissioner for the Environment are available
on our website at www.pce.parliament.nz.

Parliamentary Commissioner for the Environment

Te Kaitiaki Taiao a Te Whare Pāremata

PO Box 10 241
Wellington 6140
Aotearoa New Zealand

Phone: +64 4 495 8350

Email: [email protected]
Website: www.pce.parliament.nz

April 2025
Alt-F Reset: Examining the drivers of
forestry in New Zealand
Summary document

April 2025
Contents
Forests in Aotearoa New Zealand 6

What is a forest? 7

What is the current state of our forests? 8

Native forests 8

Exotic plantation forests 8

Māori and forestry 9

Where are we headed? 10

Timber production 10

The NZ ETS 10

Impacts of climate change 10

Where could future forests grow? 11

What are the alternatives? 12

New native forests 12

Transitional forestry 13

Alternative exotic forests 14

Alternative management regimes 15

What are the barriers to alternative forestry? 16

NZ ETS 16

Regulation16

Economics17

Availability of information and research 17

Barriers faced by Māori 18

Recommendations 19
6
Forests in Aotearoa New Zealand
Two main types of forests predominate in New Zealand: native forests that are
maintained for their environmental, cultural and conservation values; and exotic
commercial forests, which are managed for timber, fibre and (increasingly) carbon
storage. The latter is vastly dominated by radiata pine plantations.

A lot of deforestation (removal of forests), reforestation (replanting former forests) and

afforestation (establishing new forests) has been largely driven by short-term market
and regulatory signals. In more recent years, the role of forests for carbon storage has
created a new incentive for afforestation.

New Zealand’s current approach to climate mitigation means that between 2022–2050,
more than 900,000 hectares of new forests could be planted across the landscape.1
While many New Zealanders may hope that much of this will be native forest,
current economic and policy drivers, such as the New Zealand Emissions Trading
Scheme (NZ ETS), make it more likely that these will be once again forests of radiata
pine (Pinus radiata).

This report aims to inform discussions on future afforestation in Aotearoa

New Zealand. It asks where we are currently headed and what some of the possible
alternatives are. Specifically, it considers:

• What is currently driving afforestation in New Zealand and what effect is this
having on our environment?
• What do we know about establishing native forests at scale?
• What are some of the most promising alternative exotic species that could be
established at a greater scale in New Zealand? How much do we know about them?
• What do we know about long-term management of different types of forests and
what management systems are possible other than clear-felling?
• What environmental impacts could result from greater uptake of alternative forestry
systems (i.e. other than radiata pine under a clear-fell or carbon forest regime)?
• What is preventing greater uptake of alternative forestry systems?

To be clear, radiata pine has, and should continue to have, an important role in
New Zealand's economy. Sited appropriately (and managed well) it is a highly valuable
resource with many benefits. However, our current heavy reliance on a single species
comes with environmental and economic risks that could impact the resilience of
our forests. In some places the adverse environmental effects of the current clear-fell
regime are simply too great to justify. Using forests to offset fossil emissions carries
even greater risks. This report also investigates what wider changes are needed to
address issues with our current approach to forestry.

1 Climate Change Commission, 2024. Advice on Aotearoa New Zealand’s fourth emissions budget. Table 4.2.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
What is a forest? 7
The term ‘forest’ can be defined in different ways. In this report, the term is used in its
broadest sense and includes these different types:

Native forests are any type of forest dominated by native tree species.

Exotic forests are any type of forest dominated by exotic tree species.

Plantation forests are where trees are planted at scale for commercial
purposes, such as wood production or carbon.

Production forests are managed for some level of wood (timber and pulp)
production. This includes rotational forests that are clear-felled (and then
replanted) and continuous cover production forests where harvesting is
more selective and managed to maintain a high level of canopy cover.

Permanent forests are managed over the long-term (potentially indefinitely)

while maintaining a high level of canopy cover.

Carbon forests are managed only for carbon sequestration and storage and
will not be harvested.

An alternative forestry system is any forest in New Zealand that is not a

radiata pine plantation forest managed under a clear-fell or carbon forest
regime. The forest could consist of native and/or exotic species and be
established for any purpose.

Ngahere is a term used by Māori for the broad purposes of defining a forest
or any other land that predominantly has rākau (trees) on it. There are many
words for forest in te reo Māori due to local dialectical differences. Here we
use the term ngahere as it is the most common kupu (word) for forest.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
8 What is the current state of our forests?
There are 10.1 million hectares of forests in New Zealand today, covering 38% of our land
area. Of this, 8 million hectares are in native forests located on Crown, private land or
whenua Māori, and 2.1 million hectares are exotic plantation forests.

Native forests Exotic plantation forests

Native forests today cover about 30% of our Of the 2.1 million hectares of planted exotic
total land area, reduced from an estimated forest estate, approximately 1.8 million
80% coverage in pre-human times. The total hectares (86%) are plantation forests managed
area of native forest has remained relatively for commercial production purposes (mostly
static since 1996.2, 3 wood and fibre).6 These are predominantly on
private land or whenua Māori.
Native forests include the remnants of old-
growth forest (native forests with large mature Radiata pine is the dominant species, making
trees that have never been cleared by humans) up about 90% of our plantation forests by
and regenerating or secondary forests (areas area. Decades of targeted research and
that were deforested but have reverted or are development have created a highly efficient
reverting back to native forests). industry built around radiata pine. Large
areas can be planted cheaply using improved
Most native forests can be broadly classified seedling stock, clear-fell harvested at around
as either beech forest or mixed broadleaf- 28 years of age, and replanted a couple of
conifer forest, with beech forests making years later. This efficiency has been the
up the largest area (approximately 60%).4 cornerstone for a forestry industry that
These forest types are not distributed evenly contributes an annual gross income of around
throughout New Zealand, nor are they $6.6 billion (1.6% of New Zealand’s GDP) and
representative of the diversity of forests that employs some 35,000–40,000 people.7
existed prior to human arrival.
The remaining 10% of plantations in
Many of New Zealand’s remaining native New Zealand are made up of different tree
forests are in declining or poor health. Decades species, predominantly Douglas fir (5% of
of sporadic pest management mean that plantation area) but also cypresses, eucalypts,
many forests have been ravaged by invasive redwoods and others. These alternative exotic
plants and animal pests.5 Climate change is species have generally been planted at small
adding yet more environmental stress. Better scales rather than large plantations, such as in
management is needed to improve forest woodlots on farms.
resilience and stem further losses.
In recent years, the NZ ETS has incentivised
Some native forests have been established the planting of both new production forests,
for commercial purposes, such as honey where carbon credits provide an additional
and timber production, and non-commercial source of revenue, and carbon forests funded
purposes, such as enhancing biodiversity, purely through carbon credits. Most carbon
improving water regulation and restoring the forests are plantations of radiata pine,
mauri of the whenua. These initiatives have selected for the high returns that its rapid
been relatively small scale compared to the carbon sequestration rate can deliver.
exotic forest estate, although government-
funded afforestation programmes have
boosted these efforts.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
 9
Māori and forestry
Box 2: Benefits of forests
Māori play a key role in the forestry sector,
While commercial forests afford obvious making up a large part of the forestry
financial benefits, all forests (including workforce and owning large areas of
radiata pine) can provide environmental exotic plantation forest (190,000 ha) and
benefits. These vary considerably based native forest (570,000 ha).8 They also own
on the characteristics and management more than half a million hectares of land
regime of the forest. Benefits can include: covered in exotic forests, owned by private
companies. In 2022, Māori forestry assets
• regulation of soil-water interactions,
were worth $4.3 billion.9
which reduces erosion, improves land
stability, limits the impacts of flooding Māori have special relationships with
and improves water quality their whenua and ngahere that need to be
• greater biodiversity and ecosystem considered when discussing the future
resilience of forestry. Many whānau, hapū and iwi
see afforestation as a way of protecting
• animal welfare through the provision Papatūānuku.
of shelter, shade and food
Historically, breaches of te Tiriti o Waitangi
• social and cultural values
led to large losses of Māori land and
• improving and restoring the mauri of disrupted the traditional relationships Māori
whenua had with forests. Some land was retained
• carbon sequestration and storage, under Te Ture Whenua Māori Act 1993 or
contributing to climate mitigation efforts. returned in Treaty settlements, but much
of this is remote and marginally productive
with limited options for use. Planting carbon
forests has been one way of using this
whenua to generate revenue, but it presents

900,000
a challenge to Māori decision-makers
working with an intergenerational timeframe,
as it limits options for future land use.

hectares of new Today, many Māori landowners are trying to

use their land as a source of resilience for
forests could be future generations. This includes generating
income and employment through commercial

planted by 2050. forestry, holding land for customary purposes,

and contributing to the protection and
Source: CCC, 2024 conservation of forest biodiversity.

2 https://www.stats.govt.nz/indicators/predicted-pre-human-vegetation
3 Ministry for the Environment and Statistics NZ, 2024. New Zealand’s Environmental Reporting Series: Our Land 2024.
4 Wyse et al., 2018. New Zealand forest dynamics: A review of past and present vegetation responses to disturbance, and
development of conceptual forest models.
5 https://www.stats.govt.nz/indicators/extinction-threat-to-indigenous-species
6 https://www.mpi.govt.nz/forestry/new-zealand-forests-forest-industry/about-new-zealands-forests
7 https://www.mpi.govt.nz/forestry/forest-industry-and-workforce/forestry-wood-processing-data
8 Ngā Pou a Tane, 2024. Tū Mai Rā! Te Whānau o Tāne: Growing the total economic value of our national Māori forest.
9 New Zealand Government, 2022. Te hau mārohi ki anamata: towards a productive, sustainable and inclusive economy:
Aotearoa New Zealand’s first emissions reduction plan.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
10 Where are we headed?
Current economic and policy drivers have put New Zealand on a trajectory towards establishing
vast areas of new exotic production and carbon forests. These forests are likely to mostly consist of
radiata pine, given the species’ current dominance in the industry and economic appeal for both wood
production and carbon sequestration.

Timber production Impacts of climate change

The global demand for wood continues to be an Climate change poses increasing risks to
economic driver for establishing new forests, as existing and future forests. These include:
it was throughout the past century. Radiata pine
remains New Zealand’s preferred choice for • more extreme rainfall events, creating
timber production for many reasons, including greater risk of erosion and slips with
its rapid growth, adaptability to a wide range of sediment and woody debris being
environmental conditions and versatility of use. washed downstream
New Zealand’s forestry infrastructure has been • more extreme winds, increasing damage
developed around radiata pine, and no other to forests
species has been so well studied or developed.
• increased fire risk in some areas
• increasing regional differences in rainfall
The NZ ETS – wetter in wet areas, drier in dry areas –
The NZ ETS currently includes forestry and causing stress to trees and making forests
allows fossil fuel emitters to purchase more vulnerable to pests and diseases
unlimited forestry offsets (a unique feature • the potential for increased spread of
of any of the existing schemes globally). If existing pests and diseases, and arrival
allowed to continue, this poses significant of new biosecurity risks.
social and economic risks, including that:
Production forests need to withstand
• large areas of land will effectively become changing environmental conditions until
locked up in forests with carbon liabilities, harvesting (about 28 years). This seems
severely restricting the option of future manageable. However, trees planted for
land use change long-term carbon storage will need to
• productive land (including production withstand changes over many more decades
forests) could be lost to carbon forests with to form a permanent, self-sustaining forest.
impacts on rural communities
In general, planting monocultures for long-
• future generations will be faced with the term carbon mitigation purposes is unlikely
costs of maintaining a much larger forestry to result in permanent, resilient forests.
estate in a warming world Regardless of the type of forest, ongoing
• the Crown may face implicit liabilities if management is likely to be needed.
forests established to offset emissions
are damaged by pests, diseases or natural
events.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
 11

2.44 million hectares

of pastureland have
been identified as
potentially suitable
for afforestation.

Where could future forests grow?

An analysis by the Ministry for Primary Industries
(MPI) in 2024 identified approximately 2.4 million
hectares of pasture that may be suitable for
afforestation, with about 1.7 million hectares
potentially suitable for permanent or production
forest and another 770,000 hectares only suitable
for permanent forests. The analysis identified
large areas of the South Island as potentially
Existing forest suitable for afforestation, but most recent
afforestation has occurred in the North Island.
Potential for all tree species

Potential for all tree species

Additionally, the Department of Conservation
except production exotics (DOC) had estimated that about 59,000 hectares
of Crown land could be suitable for afforestation,
Lake
and recently, the Government sought information
from private parties who might be interested in
200 km planting trees on public conservation land.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
12 What are the alternatives?
There is a range of alternative forestry systems that could be considered in New Zealand,
including alternative exotic forests and management regimes, as well as the establishment
of new native forests.

New native forests

While there is a great deal of public interest
in establishing new native forests, little is Box 3: What could be gained from better
known about how to successfully do so at management of existing navtive forests?
scale. Significant environmental changes
have occurred since the arrival of humans in Some of the values being sought from
New Zealand, including land use pressures, new native forests could be achieved
the introduction of pest plants and animals, through better management of our
accompanied by the loss of native seed existing native forest estate. Many of
sources from many areas. This means that New Zealand’s existing native forests are
large-scale native afforestation is likely to in poor health, but they are still highly
need human intervention to succeed. This valuable, supporting native biodiversity
could range from simply aiding natural and providing substantial carbon storage,
regeneration with browser and weed water regulation and erosion control, as
control, through to high-density plantings well as cultural, recreational and amenity
of a diverse range of native tree species. benefits. However, environmental and
The best approach for a particular location human-induced pressures, such as
will depend on various factors, including climate change or pests, mean that even
climate, topography, accessibility, presence retaining these benefits can be difficult.
of native seed sources, existing vegetation, Better management is needed to improve
browsing pressures and if any natural forest resilience and stem further losses.
regeneration is already occurring. Costs A particular risk from a climate mitigation
increase with the scale of intervention. perspective is that failing to adequately
Assisting regeneration, combined with some maintain our existing native forests could
targeted planting of native species, is likely see them become a major source of
to be more cost effective and achievable at carbon emissions.
scale than widespread planting.

In addition to the upfront costs of

establishing the forest, there are potentially
significant ongoing costs. Some degree of
forest maintenance is likely to be required
to manage the effects of plant and animal
pests over the lifetime of the forest,
particularly where tall, diverse forests are
the aim. Without this help, new native
forests will suffer the same fate as many
of our existing native forests. Large-scale
plantings have failed in the past due to a
lack of maintenance.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
“Large-scale native 13

afforestation is likely to
need human intervention
to succeed.”
Transitional forestry
Transitional forestry is a relatively new form
of forestry, where fast-growing exotic forests
are managed to transform into native forests
over time. While the transition often involves
radiata pine as the exotic crop, other exotic
species could be suitable.

One of the key benefits expected from

transitional forestry is that the approach could
offer a more financially viable alternative to
planting a native forest from scratch, with
the transition to native forest being funded by
the exotic crop’s rapid carbon sequestration.
However, research undertaken for this report
by Manaaki Whenua – Landcare Research
found that a ‘carbon dip’ is likely to occur
during the transition, as the exotic trees are
replaced by slower-growing native trees that
(at least initially) hold less carbon. The carbon
liability incurred during this time could be
significant.

There is uncertainty around many aspects of

transitional forestry, including:

• how to best manage the transition process

and what the long-term outcomes may be
• the optimal planting densities for exotic
crops and target native species
• the timing of the transition
• how carbon stocks could change over time
and how the transition and ongoing forest
management will be funded.

Beech forest, Lewis Pass, Canterbury

Source: Jon Sullivan, Flickr

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
14 Alternative exotic forests
Alternative exotic tree species can complement radiata pine by offering
diverse traits with different environmental benefits (and risks), as well as
novel commercial and land use opportunities. Some could also act as a
contingency species for timber production, should a biological disaster
affect radiata pine – although no other species tolerates such a wide range
of conditions as radiata pine.

The benefits and risks of exotics vary across species. Some species have
traits that offer environmental benefits, such as strong interlocking root
systems, which provide good erosion control, or being tolerant of shade,
which makes them suitable for continuous cover forestry. Some are more
susceptible to pests and diseases or are more flammable than other
species. In many cases, the forest management approach will be a more
significant driver of overall environmental impacts than the species of tree.

While there are many alternative species that could play a greater role in
forestry in New Zealand, some have been more developed and attracted
greater interest than others. Examples include coast redwoods, eucalypts,
cypresses, poplars and the radiata-attenuata pine hybrid.

Ongoing
Cost of management
planting of trees

Cost of
Challenges to Pest/weed
seedling
production native afforestation control

Seed sourcing/ Financial

viability incentives

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
Alternative management regimes 15
There are a range of forest management approaches that are being applied
at a small scale in New Zealand that could be adopted more widely.

Continuous cover production forestry Agroforestry is the incorporation of trees

retains a high canopy cover at all times within agricultural landscapes. This can
with some low intensity harvesting, such include riparian plantings, shelterbelts and
as selective tree or small coupe harvest. widely spaced trees within grazed areas.
This leads to the development of a The integration of appropriate trees within
mixed-age forest with greater structural pasture can reduce erosion in hill country
diversity than a single-age forest. This and improve animal welfare through the
approach combines commercial values provision of shade and shelter. Depending
with long-term environmental values, on the tree species, agroforestry can also
such as biodiversity, erosion control and provide fodder during periods of drought
carbon storage. and feed shortage.

“In many cases, the

forest management
Many Māori landowners are managing approach will be
a more significant
commercial forestry and conservation
forestry using te ao Māori principles,
such as rangatiratanga, kaitiakitanga,
mauri, whakapapa and ahikāroa. For
example, some forests may be managed
driver of the overall
not only for timber production, but also
for other activities, such as hunting by
environmental
whānau.
impacts than the
species of tree.”

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
16 What are the barriers to alternative forestry?
A more diverse forestry estate could offer environmental benefits, improve resilience and open
up new economic opportunities, but multiple barriers are preventing this from happening.

NZ ETS landowners interested in native timber

production from supporting the regeneration
Under its current settings, the NZ ETS presents of native forests – a far more cost-effective
a range of issues and barriers to various types of option than planting from scratch. There
alternative forestry: are also differences in how councils treat
harvesting under the Forests Act.
• Fast-growing species, like radiata pine,
produce better returns through the NZ ETS • The National Environmental Standards
than slower-growing species, such as most for Commercial Forestry relies on a coarse
natives. erosion mapping tool for initial risk screening,
which acts as a barrier to identifying where
• While there are regional carbon yield tables
less intensive, small-scale forestry systems
for radiata pine, other species are grouped
could be integrated into erodible landscapes.
together into broad forest types at a national
scale, meaning that current settings may • There were concerns that the identification of
under or overestimate actual carbon stored. Significant Natural Areas (SNA) through the
National Policy Statement on Indigenous
• Practitioners of transitional forestry face
Biodiversity could have disincentivised
uncertainty over how carbon stocks might
establishing new production forests with high
change over time, how this would be
biodiversity values (such as native forests and
accounted in the NZ ETS, and what carbon
continuous cover forests) or the protection
liability the forest owners may face.
of biodiversity within existing production
forests. The requirement for councils to
Regulation identify SNAs has been paused until October
Different kinds of forests are subject to different 2027, but this offers little long-term clarity for
sets of rules based on the species, type of land a multidecadal venture such as forestry.
ownership, usage and whether they were planted • Radiata pine is the most widely represented
or are naturally regenerating. Ongoing reforms acceptable solution in relevant Building
of the resource management system mean Code standards. While this does not exclude
that large parts of this framework are in flux, the use of alternative timbers in the building
adding policy uncertainty to an already complex sector, it makes their use more uncertain,
regulatory framework. costly and time-consuming.

Some of the key regulatory barriers to alternative

forestry systems are as follows:

• Under the Forests Act 1949, harvesting

timber from existing or regenerating native
forests on private land requires an approved
plan or permit and only very small volumes
of timber can be harvested. However, there
are no restrictions on harvesting from planted
native forests. This may disincentivise

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
Economics Availability of information 17
There are sticking points throughout the supply
and research
chain for alternative forestry systems that Research and development gaps are another
would need to be addressed to achieve scale barrier. New Zealand has overwhelmingly
and economic viability. Establishment and invested forestry research resources into
management costs can be high, and there is clear-fell radiata pine. Reliable information
greater uncertainty about financial returns and expertise about every stage of the
compared to a radiata pine clear-fell regime. process from planting to processing is
For example, alternative production systems easily accessible. Investment in radiata pine
that involve longer rotations or lower intensity research and development is ongoing and
harvesting typically require high value timber continues to exceed that of other species.
markets to be economically viable. However,
those markets may not be well developed due By contrast, we know much less about
to inconsistent supply or quality of alternative many of the steps involved in alternative
timbers. Access to infrastructure, such as mills forestry systems, from seed germination and
and transportation networks, can also be an establishment techniques to the economics
issue, as can accessing quality seedstock and of alternative management regimes and
expertise in alternative forestry systems. the properties of alternative timbers. This
lack of information makes alternative
High upfront costs are a particularly important forestry a potentially high-risk and expensive
barrier for native afforestation, with high-density undertaking. When investment into alternative
native plantings typically costing around $25,000 forestry has occurred, it has often been short-
per hectare.10 Costs can be higher than this on term and fragmented, and the findings not
difficult terrain or where pest control or fencing always shared. This has been particularly true
is needed. Research into lower cost native of native afforestation initiatives, where the
establishment approaches is underway. focus has been on upfront planting, with little
ongoing monitoring or sharing of outcomes.
Various government funds have been set up to
We would already know a lot more than we
encourage afforestation, with the One Billion
do now about likely cost-effectiveness and
Trees scheme notable for promoting native
success if learnings from these initiatives had
and alternative species. However, these funds
been systematically collected and shared.
often do not fully cover the establishment
costs of native species or, critically, long-term
maintenance of afforested areas. Without
long-term management, the health of the future
forest and its benefits cannot be assured.

To justify greater investment in alternatives,

the costs and benefits of the environmental
services of both clear-fell radiata pine and
its alternatives must be better understood.
However, there are difficulties in measuring
these services and questions over how any
benefits should be financially rewarded. Te Roroa leader, Taoho Patuawa (left), demonstrates the GIS tools
they use to manage Phytophthora agathidicida from their office in
Beyond these issues, other barriers to the Waipoua forest.
alternative forestry systems include resistance
10 Based on a survey of native forestry practitioners, and assuming
to change within the forestry industry, the costs typical planting densities of 4,444 stem/ha, seedling supply from
of greater industry coordination and a lack of a commercial nursery, use of a professional planting crew, and
long-term direction for forestry in New Zealand. one year of commercially implemented releasing and blanking.
(Forbes Ecology, 2022)

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
18
“Māori have unique relationships with
their whenua and ngahere that need
to be considered when discussing
the future of afforestation.”

Barriers faced by Māori

Māori face additional barriers to alternative
systems due to the physical limitations of
their land.

These limitations are compounded by

challenges with securing investment for
development. Complex ownership structures
make it difficult for Māori to sell land or
secure capital for land development. Māori
therefore need to generate their own funding
streams or rely heavily on government
funding to support development of their land.
The NZ ETS offers a way of doing this and
has driven interest in carbon forestry and
transitional forestry as a route to establishing
native forests.

However, rules within the NZ ETS can

disadvantage Māori landowners, notably the
rule that only land afforested after 1989 can
earn carbon credits through the NZ ETS. Much
of the land returned to Māori was already
forested before this, so is not eligible to earn
additional credits in the scheme.11 Changes
to NZ ETS settings have the potential to
disproportionately affect Māori landowners.
Te waharoa at Riuwaka Resurgence, Kahurangi National Park

11 Forests established before 1990 were automatically registered in the NZ ETS from the start. Owners of these pre-1990 forests were issued
some carbon credits as a one-off compensation payment, but they have surrender liabilities and must return credits if the land is deforested.
They do not earn more carbon credits for any additional carbon sequestration.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
Recommendations 19

In response to the issues raised in this investigation, the Commissioner has made 15
recommendations, which have been summarised below. For the full recommendations,
refer to Alt-F Reset: Examining the drivers of forestry in New Zealand.

NZ ETS reform

1 Reform the NZ ETS to phase out forestry offsets for fossil emissions. Use the
increased auction revenue to fund targeted and locally appropriate afforestation
in areas that need it most (e.g. permanent native forests on highly erodible lands;
whenua Māori).

2 Create a separate ‘biogenic’ trading scheme that allows warming from biogenic
methane emissions to be offset by production forestry with radiata pine and other
suitable species.

3 At the very least, reform the permanent forest category in the NZ ETS. This
should include requiring permanent forest owners to have a realistic long-term
management plan for the forest, and creating categories, with associated rules,
for different types of permanent forests.

Better risk management

4 The Government should ensure that the long-term physical risks to the nation’s
forests and the financial risks that may accrue both to the forestry industry and to
the Crown are systematically monitored, communicated and managed.

5 Investigate how the value of forest carbon sequestration in the NZ ETS could be
discounted to reflect the risks of forest impermanence.

6 The Ministry for the Environment should investigate ways to ensure that forestry
companies cover the costs of the environmental damage they cause. This could
include the use of levies, other market mechanisms and revised regulation.

7 Ban clear-fell harvest in areas where it is identified as high risk. To do this, the
most at-risk areas should be identified and mapped at a suitably high resolution.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document
20 Regulatory change for alternative commercial forestry

8 Review the application of the Forests Act to native forests that are established
through assisted natural regeneration.

9 Develop national guidance about how councils should treat native timber
harvesting carried out in line with the Forests Act.

10 Initiate a process to approve more alternative timbers as acceptable solutions

under the Building Code, including reviewing the membership of committees that
approve these solutions.

Funding, information and research

11 Focus future afforestation funding schemes on successful establishment and

long-term maintenance. Funding sources for the ongoing maintenance of forests
for ecosystem services could include revenue from NZ ETS auctions, payments
for ecosystem services or taxpayer funding. Any publicly funded afforestation
projects must include maintenance, monitoring and reporting plans.

12 Ensure that alternative forestry systems are given prominent treatment in any
future prioritisation of environment and forest-related research.

13 Develop and maintain a publicly accessible data system to improve the availability
and usability of existing knowledge about alternative forestry systems.

Forestry policy

14 Governments should try to develop a level of cross-party agreement on the broad

strokes of forestry policy, including the degree to which diversification of the
forestry estate is desirable and what will be needed to achieve that.

15 Any reframing of forestry policies as suggested by this report must engage Māori
from the outset.

Alt-F Reset: Examining the drivers of forestry in New Zealand | Summary document