Risk statement

Investing in native forest projects and carbon credits carries inherent risks that you should understand before committing capital. MyNativeForest operates within established regulatory frameworks including the New Zealand Emissions Trading Scheme (NZ ETS) and Verra standards, yet market conditions, environmental factors and policy changes can affect outcomes.

Carbon credit values fluctuate based on market demand, regulatory changes and international climate policy developments. The price you receive when selling credits may differ significantly from current market rates. Forest projects depend on biological growth and natural processes that cannot be guaranteed, and unforeseen events such as disease, pests or extreme weather can impact carbon sequestration rates and project viability.

Regulatory risk exists across multiple jurisdictions. Changes to NZ ETS rules, Verra standards or international carbon market frameworks could alter the value or tradability of credits you hold. Government policy shifts regarding climate commitments or forestry regulations may create both opportunities and constraints for project development.

Land-based projects face environmental uncertainties. Native forest regeneration timelines extend over decades, and biological outcomes depend on factors beyond our control. Soil conditions, water availability, pest pressure and climate variability all influence forest health and carbon accumulation rates. We implement best-practice management, yet nature remains inherently unpredictable.

"Risk is inherent in any investment, and forest carbon projects are no exception. Understanding these risks helps you make informed decisions aligned with your investment objectives."

Liquidity risk applies to carbon credit investments. Unlike publicly traded securities, carbon credits may have limited buyers at any given time, potentially affecting your ability to sell holdings quickly or at desired prices. Market depth varies between NZ ETS and voluntary carbon market credits.

Counterparty risk exists when dealing with buyers, sellers or intermediaries in carbon transactions. We conduct due diligence on partners, yet financial or operational failures by third parties could impact project outcomes or credit delivery. Reputational risk in the carbon market remains relevant as standards and buyer expectations evolve.

Tax and legal implications vary by jurisdiction and individual circumstances. Carbon credit treatment for tax purposes differs across countries and may change over time. We recommend consulting with qualified tax and legal advisors regarding your specific situation before investing.

Project-specific risks include land tenure issues, management challenges and operational costs. Forest projects require ongoing investment in maintenance, monitoring and compliance. Cost overruns or management failures could reduce profitability or jeopardise carbon credit generation.

Climate policy risk reflects the evolving nature of global climate commitments. While carbon markets have strengthened, future policy directions remain uncertain. Changes to international climate agreements or national climate targets could affect long-term demand for carbon credits.

Diversification across multiple projects and asset classes can help manage individual project risks. We encourage investors to consider their overall portfolio composition and risk tolerance before committing to forest carbon investments. Past performance does not guarantee future results.

This statement provides general risk information and does not constitute financial advice. Individual circumstances vary, and you should seek professional guidance tailored to your specific situation before making investment decisions.