UPDATE: On 31st May 2024, the New Zealand Government confirmed it would repeal legislation requiring the compulsory registration of log traders and forestry advisers.
This means registration will no longer be required once the repeal is passed.
Changes will come into effect before 1 July 2024.
See the full announcement on the Beehive website, here: beehive.govt.nz/release/government-repeal-costly-log-trade-legislation
Think you're just a sustainability professional? Think again. In the eyes of the law, your well-meaning advice could unintentionally qualify as forestry advice. Let's explore how to navigate these waters without getting tripped up.
You’re the Head of Sustainability for a meat processor and exporter, responsible for delivering ambitious sustainability targets—a 30% reduction by 2030 and net zero by 2050.
With over 95% of your Scope 3 emissions stemming from your network of sheep and beef farmer suppliers, the challenge is, frankly, steep. But emissions from behind the farm gate also come with an opportunity - a potential source of carbon removals that are also in your value chain - farmers' non-ETS (Emissions Trading Scheme) eligible trees and plantings.
So you’re putting together a supply chain carbon removal program to harness these natural assets, reduce your net emissions, and make progress towards your targets. Not only is this a win for decarbonisation, but it’s also a strategic move to boost biodiversity and strengthen ties with your suppliers, enhancing resilience across your operations.
However, there's a catch: in your eagerness to communicate these plans, it's easy to stray into territory that legally qualifies as forestry advice—a potential pitfall you might not even be aware of.
What is Forestry Advice?
In New Zealand, providing forestry advice isn’t just about trees—it extends to carbon. Under the law, for reward activities linked to the Emissions Trading Scheme (ETS), such as advising on carbon credits or forest management for carbon sequestration, could be classified as forestry advice. To give it, you must be a registered forestry advisor… which you’re probably not.
Under the legislation, carbon could be considered a forestry product. These are some carbon-y examples of forestry advice:
1. ETS involvement
Carbon credits are intrinsic to the ETS, so any advice related to registration, managing carbon stock, or ETS regulations could be forestry advice
2. Forest management for carbon
Managing forests can indirectly include managing them to enhance carbon sequestration. Afforestation and reforestation would be typical examples of this.
3. Valuing forests for carbon
Evaluating the carbon sequestration potential of a forest in the context of carbon units could be considered forestry advice, particularly if the carbon units will be traded or land management decisions to maximise carbon sequestration could be made.
4. Forest carbon projects Projects that involve carbon sequestration in forests (as opposed to soil, for example) or land use approaches that have carbon as a significant component could fall under forestry advice.
Common Potholes to Avoid
While general information about forests and educational materials fall outside the scope of 'advice,' information tailored to a specific forest could be in scope. The application of your carbon program to a specific supplier's farm could easily lead you into advisory territory. Here are some situations that might catch you out:
Recommendations on how to establish, manage, or protect forests, especially for carbon sequestration. Example: Advising one of your farmers on the best tree species for carbon sequestration and biodiversity enhancement in a specific area of their land.
Giving advice on how forestry activities relate to the ETS, including eligibility and carbon accounting methods. Example: Discussing with a farmer on ETS eligibility for a new area of planting they’ve done and whether they might like to participate in your carbon program instead.
Assessing forests, potential forest land and creating a plan for a carbon project. Example: Advising a farmer that a browsing pest control program, or fencing for stock exclusion would enhance their carbon sequestration.
Advising on the benefits of forests: Providing advice on the benefits of forests, which could include carbon sequestration among other ecological, environmental, and economic benefits, can be considered forestry advice. Example: Advising a farmer on how their non-ETS native forests contribute to carbon sequestration and can help offset emissions from other parts of the supply chain could be seen as providing forestry advice.
Go Carefully
If you're only talking about space plantings, riparian strips, or farm shelter belts then you're probably fine, but it's tough to avoid giving advice when carbon is intrinsic to forestry as well as your supply chain carbon program. Recognising what constitutes forestry advice is the first step to avoiding accidental breaches and a potential fine of $40,000.
The rules from MPI on forestry advice can change, and we will update this blog post if they do. We have a number of registered forestry advisors within our team, so we can help you stay up to date or advise when you might be straying into forestry advice territory.
Subscribe to our blog to stay in the loop and on track.
Extras for experts (because you don’t have enough to do already!?)
Forests Act 1949
This legislation covers a wide range of forestry activities in New Zealand. Recent amendments have included provisions specifically for the regulation of forestry advisers, defining who needs to be registered and the scope of forestry advice. Read more.
Forests (Registration of Log Traders and Forestry Advisers) Amendment Act 2020
This amendment specifies the regulatory framework for registering as a forestry adviser or log trader. It defines forestry adviser services, including advice on forest management, the ETS, and the sale or purchase of forest products. Read more.
Forests (Regulation of Log Traders and Forestry Advisers) Regulations 2022
These regulations provide detailed requirements for registration, the code of ethics for forestry advisers, and the criteria defining what constitutes forestry advice. They also outline the obligations of registered forestry advisers. Read more.
Forests Code of Ethics for Registered Forestry Advisers Rules 2022
This document outlines the ethical standards and professional conduct expected of registered forestry advisers. Read more.
MPI Guidance Documents
Key documents for understanding day-to-day compliance and operational standards
MPI Guide on What is a Forestry Adviser
This guide explains the roles of forestry advisers, the services they provide, and the legal definitions involved. Read more.
MPI Guidance on Exemptions and Requirements for Forestry Advisers and Log Traders
This includes specific exemptions from registration requirements for certain activities. Read more.
MPI Guide on the Emissions Trading Scheme
Since much of forestry advice relates to the ETS, MPI provides guidelines on how forestry interacts with the ETS, including eligibility, registration, and compliance requirements for forest carbon activities. Read more.
With due respect this (Pompos) post is not consistent with the admirable culture of CarbonCrop as I understand it and should be removed. Thankfully the coalition govt is about to remove the forest advisors & log traders bill honoring the National Party's pre-election forest policies.
The only staff who require registration are those involved in safety eg electrical, some engineering, some sanitary plumbing, gasfitting, & drainlaying work, medical, education, etc, but thankfully not agricultural, forestry or hair dressing staff.
The NZ Forest Owners Association and a raft of other submitters wrote first class submissions apposing ridiculous legislation promoted by staff from our Wellington based Forestry Ministry.
Jeff Tombleson
Passionate about forests for 50-years