The Ministry of Agriculture & Forestry says the Emissions Trading Scheme is helping to stimulate an increase in tree planting.
The ministry's national exotic forestry description shows an estimated 67 million seedlings were planted during the year to April.
The estimate, based on reports from commercial forestry nurseries, is a 27% increase from the 53 million planted the previous year.
MAF says that would equate to 12,000 hectares of new plantings and replanting of about 48,000 of harvested forest.
MAF analysts say feedback suggests much of the increased planting was motivated by the Emissions Trading Scheme along with a generally positive outlook for wood and wood fibre demand.