Pre-1990 vs Post-1989 Forest Land Explained
The distinction between pre-1990 and post-1989 forest land is fundamental to forestry investment in New Zealand. It determines ETS eligibility, land-use flexibility, and long-term options.
This page explains the difference and why it matters.
What the dates mean
Pre-1990 forest land: Forested as at 31 December 1989
Post-1989 forest land: Not forested at that date
These classifications are set in legislation and supported by official mapping
“The classification applies to the land, not the current forest”
Pre-1990 forest land
Characteristics:
Generally not eligible to earn NZUs
Faces restrictions on deforestation
May require surrender of units if converted to another land use
Pre-1990 land often suits long-term timber production rather than carbon strategies.
“Replanting pre-1990 land does not make it carbon-eligible.”
Post-1989 forest land
Characteristics:
May be eligible to earn NZUs
Offers more flexibility in ETS participation
Requires careful management of carbon liabilities
Post-1989 land underpins most carbon forestry investment.
“Post-1989 land can generate both carbon and timber returns.”
Why this matters for investors
Misclassification can result in:
Overstated returns
Unexpected liabilities
Reduced exit options
Verification is critical before purchase.
“Never rely on assumptions — confirm land status early.”