Selling carbon credits and de-forestation

Last month we talked about how you could use your forestry land to earn carbon credits, but how do you calculate carbon credits, what happens when you want to sell those carbon credits, and what happens when you clear your forest land?

Calculating carbon credits

Each year you’ll need to submit emissions returns to report on the amount of carbon in your forest land. To calculate the amount of carbon in your forest land, you need to know what species the forest is as different tree species remove carbon from the atmosphere at different rates. It also differs depending on the region the forest land is in. There are carbon tables that help you do the calculations and will tell you how many tonnes of carbon (carbon dioxide) are in forest land per hectare, based on the characteristics of the forest.

An example, one hectare of five-year-old Pinus radiata can range from 15-77 tonnes of carbon dioxide per hectare, depending on the region the trees are in. When the trees are ten years old, the range is 125-219 tonnes of carbon dioxide per hectare.

When it’s time to sell your carbon credits

Ensure you're registered with the New Zealand ETS. This is necessary for participating in the market and managing your carbon credits. Each carbon credit represents the reduction or removal of one metric ton of carbon dioxide (or its equivalent) from the atmosphere. They can be purchased to offset emissions produced by various activities. Your credits are stored in your NZETR account and are called ‘units’. You can sell your units through the carbon market – anyone who has an NZETR account can buy and sell units. Currently, each carbon unit is worth $53.17.

What happens when you clear your forest land?

When forest is cleared, the carbon it stores is released which contributes to the country’s emissions. You may need to pay units for these emissions, depending on the kind of forest land you have and whether it's in the ETS.

Pre-1990 forest land

If you deforest pre-1990 forest land, you must pay 1 New Zealand Unit (NZU or unit) for every tonne of carbon dioxide released by the deforestation (also known as surrendering units). There are exceptions if the land is exempt, or you have an approved application to offset it by planting another forest elsewhere.

Post-1989 forest land

If you have post-1989 forest land, you must pay units if you deforest the land and/or remove it from the ETS. Depending on your method of carbon accounting, you may need to pay units if you clear the forest, even if you replant it (or it regenerates).

For more information on the Emissions Trading Scheme see https://www.mpi.govt.nz/forestry/forestry-in-the-emissions-trading-scheme/

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Tips for Moving Day

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by Birgit Hoeglinger • 11 April 2025

Selling your business is a huge milestone—one that marks the culmination of years of hard work, dedication, and vision. But once the deal is done and the dust settles, you may find yourself wondering, “What’s next?” Exiting your business opens up a world of possibilities. Here are five potential pathways to consider as you embark on this new chapter of your life. 1. Enjoy Retirement For many, selling a business is the gateway to retirement. After years of being immersed in the day-to-day demands of running a company, retirement offers the opportunity to slow down and enjoy life at your own pace. Whether it’s traveling, spending time with family, or taking up new hobbies, retirement allows you to focus on the things that bring you joy. Planning ahead—both financially and emotionally—will ensure you make the most of this well-earned time. 2. Invest in Other Businesses Selling your business doesn’t mean stepping away from the business world entirely. Many people choose to invest in other businesses, whether it’s through buying equity, becoming a silent partner, or supporting start-ups. Your years of experience give you a unique perspective, and investing allows you to stay connected to the business community while diversifying your income streams. 3. Start a New Venture Once an entrepreneur, always an entrepreneur! If you have a new idea or are passionate about exploring a different industry, selling your business can provide the resources and freedom to start fresh. Whether it’s launching a tech start-up, opening a café, or pursuing an entirely new market, starting a new venture keeps your entrepreneurial spirit alive. 4. Become a Non-Executive Director Another pathway is to leverage your expertise and become a non-executive director. Many businesses value the insight and guidance of experienced business people. As a non-executive director, you can provide strategic advice, mentor leadership teams, and help shape the future of other companies—all without the full-time commitment of running a business. 5. Pursue Philanthropy For some, selling a business is an opportunity to give back. You might choose to support causes you care about through charitable donations, creating a foundation, or volunteering your time. Philanthropy not only helps make a difference in your community or the wider world but can also provide a deep sense of fulfilment and purpose in your post-business life. Charting Your New Path Exiting your business is both an ending and a beginning. It’s a chance to reflect on everything you’ve achieved and to embrace new opportunities that align with your goals and passions. Whether you’re ready to relax and retire, dive into new ventures, or make a positive impact through philanthropy, the choice is yours. Whatever path you choose, careful planning will help ensure your next chapter is as rewarding and successful as the one you’ve just completed. If you’d like support in exploring your options or preparing for life after your business, don’t hesitate to reach out us for guidance.

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by Birgit Hoeglinger • 7 April 2025

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