Parliament has been told the Emissions Trading Scheme is unfair on Maori who will reclaim 600 hectares of pre-1990 forests in Treaty settlements.
A select committee reviewing the scheme continued hearing submissions on Monday.
Under the 2008 scheme, landowners are liable if they deforest more than 200 hectares of pre-1990 forest land.
The Climate Change Iwi Leadership Group told the committee that the bulk of Maori forestry - including Crown Forest License lands to be returned - is pre-1990.
The group's spokesperson, Willie Te Aho, told the committee the timeline is arbitrary.