Ngai Tahu has told Parliament the Emissions Trading Scheme will cost the South Island iwi up to $120 million.
Under the 2008 scheme land-owners are liable if they clear more than two hectares of pre-1990 forest land.
Ngai Tahu leader Mark Solomon says the scheme is prejudicial for assets transfered under Treaty settlements.
Mr Solomon says the iwi purchased 83,000 hectares of pre-1990 forest land, which it intended to convert into farm land.
He says Ngai Tahu has no control over the trees on the land which are cleared by forestry companies and they will create a liability of between $40 - $120 million for the iwi.
A select committee is reviewing the scheme.