will be kept in Emissions Trading Scheme
Two months ago, iwi which rely on the industry were threatening legal action and a Waitangi Tribunal claim over the proposal.
But it appears a compromise may be reached after a series of recent meetings.
With an estimated $7 billion in future earnings at stake for iwi forestry owners, it looked like the plan to cut pine trees from the Emissions Trading Scheme was heading to court.
The first indication the government was softening its stance came in a letter to submitters last month, signed by Climate Change Minister James Shaw and Forestry Minister Stuart Nash.
They said it was unlikely exotics would be excluded on 1 January 2023 and they were taking more time to consider other options.