New Fees and Charges in the New Zealand Emissions Trading Scheme: What You Need to Know

Originally published October 2023. Updated June 2026 to reflect confirmed changes to MPI fees and charges, effective 1 July 2026.

From 1 July 2026, the annual charge for post-1989 forest land in the ETS drops from $14.90 to $10.28 per hectare. MPI confirmed the change on 3 June. Here's what it means, and what else is changing.

What's changed

Following a full review of cost recovery settings and public consultation earlier this year, MPI confirmed on 3 June 2026 that changes to fees and charges will come into effect on 1 July 2026.

The annual charge drops from $14.90 to $10.28 per hectare - a meaningful reduction. The hourly rate underpinning all service fees has also been reduced from $165 to $133.83, which flows through to most existing fees as well.

Eight new service fees are also being introduced for services that previously had no charge. The two that matter most for most participants: the LUC Class 6 ballot application fee ($66.92, from January 2027) and the fee for failing to submit - or submitting incorrectly - an emissions return ($401.49, also from January 2027).

Summary of Fees

Annual charge

Service Description	Fees (excl GST)
Annual fee per hectare of Post-1989 land registered in the ETS	$10.28/ha/year
Mature forests (see FAQ for definition) - reduced charge for 2 mandatory emissions return periods (approx. 10 years), then no annual charge	45% reduction (approx. $5.65/ha/year)

We’ve picked the services we use the most, you can view the full updated list of fees on the MPI website.

Existing service fees (updated pricing from 1 July 2026)

Service Description	Fees (excl GST)
Registering or adding more post-1989 forest land into the ETS	From $802.98 to $3,345.75
Emissions returns	$133.83
Move post-1989 land from standard to permanent forestry	$802.98
Remove 1 or more carbon accounting areas from the ETS	$401.49
​Removing all your post-1989 forest land from the ETS and deregistering	$602.24, plus surrender if applicable

New service fees

Service Description	Fees (excl GST)
Request a review of decision (Section 144)	$401.49 effective 1 July 2026
MPI emissions return assessment due to failure to submit a mandatory return or submitting an incorrect return	$401.49 effective 1 January 2027
Apply for a permit in the LUC Class 6 ballot	$66.92 effective 1 January 2027

Frequently Asked Questions (FAQ)

How much is the annual charge going to cost me specifically?

From 1 July 2026, the annual charge is $10.28 per registered hectare. If you have 20 ha in the ETS, your annual fee will be $205.60 + GST.

The annual charge applies regardless of whether your forest is generating NZUs or not - so a registered, recently harvested forest will still incur the charge.

There is one exemption: indigenous forest that is less than six years old can be excluded from the annual charge, provided you notify MPI in Tupu-ake before 2 July 2026.

If your forest is no longer earning NZUs, a reduced annual charge now applies. See the mature forest concession below.

Do I pay an annual fee even if my forest’s net sequestration is zero or negative?

Yes, the annual charge applies regardless of whether your forest's net carbon sequestration is zero or negative. This fee is mandatory for all registered forests, except for indigenous forests less than six years old.

For example, a recently harvested forest will have a negative carbon sequestration accounting for the loss in carbon due to the decay of the initial forest. During this period, no credits are earned but the annual fee is still due.

Mature forests no longer earning NZUs have a reduced fee for two emissions returns periods, then no annual charge after that.

When do I need to pay the annual fee?

If you are a participant with post-1989 forest land in the ETS, you will receive a first invoice in November 2023 with your annual charge calculation based on the total area of forest land that you have registered in the ETS. The invoice will be sent to you as the participant, regardless of whether you have a forestry consultant nominated as your representative and will be due in dollars (not NZUs). The first invoice you receive for these annual charges will be calculated from registered hectares on 19 October 2023 for the 256 days until 30 June 2024. From 1 July 2024, the charge will become annual and apply from the beginning of each financial year (from 1 July to 30 June). This annual charge will then be based on the land registered in the ETS on 1 July and covers the year ahead (the following 12 months). If you register or add more land within a year, you will be invoiced for a part-charge that covers the remaining portion of the annual charge for that year, once the application is complete.

What's the mature forest concession?

If your forest has reached the point where it no longer reports changes in carbon stock - meaning it's past its average age under averaging accounting, or at the end of the carbon tables under stock change - a reduced annual charge now applies.

Instead of the full $10.28/ha, you'll pay 45% less (roughly $5.65/ha) for two mandatory emissions return periods, which works out to approximately 10 years. After that, no annual charge applies to that land at all.

This resolves a long-standing complaint from the sector: that forests no longer earning NZUs were still being charged an annual fee in perpetuity.

What is the new ballot fee and does it affect me?

In 2026, applying for a permit in the LUC Class 6 ballot is free. From 1 January 2027, it will cost $66.92.

The LUC Class 6 ballot applies to anyone wanting to register exotic forest on Class 6 land. There are two ballots per year, with 15,000 ha available annually.

If you're considering registering LUC Class 6 land in the ETS and haven't already entered the ballot, this is relevant timing.

If you're not sure what exemptions are relevant for your planting plans and land, request a free ETS LUC Assessment here.

What about reviews of decision?

From 1 July 2026, a Section 144 review of decision will cost $401.49. Previously this was free. The fee is intended to discourage speculative requests but deliberately nominal to avoid creating a barrier to genuine challenges.

What if I submitted an incorrect emissions return?

From 1 January 2027, MPI will charge $401.49 if they have to amend an incorrect emissions return on your behalf. The same fee applies if you fail to submit a required return and MPI has to assess it for you.

This is new. It's a compliance incentive as much as a cost recovery measure - making it cheaper to get it right vs getting it in or not complying at all. For most participants, it won't be relevant. For those managing transfers or complex situations, keep an eye out.

What are other fees that MPI is introducing?

You can view the full list of fees on the MPI website, which you can view here.

Our Perspective

We still believe the fee structure disproportionately impacts permanent native forests due to their lower carbon sequestration rates and lower gross returns.

The annual fee has come down substantially, but won't be fully resolved until MPI looks more closely at allocating costs by forest type. The mature forest concession addresses the perpetuity problem, and charging specific fees for specific benefits instead up pooling the charges across all participants is the right direction.

Whether that's enough depends on your situation. For native forest owners weighing up whether the ETS is worth the administrative overhead, the numbers are better than they were - but the underlying question hasn't changed.

It's an ongoing situation, but despite this, we believe the ETS incentives will continue to provide a net benefit for the majority of landholders.