Property developers would be required to replant trees they removed or make a payment based on the value of tree, which could be as high as $14,980 in high-density areas.

The value will be calculated based on the value of replanting new trees and the number of trees needed to restore the canopy over 20 years.

The laws would also place regulations on more public and private trees, along with establishing a bond system that would require developers who risk damaging trees as part of nearby work to pay the value of the tree in advance.

Bonds will be imposed when a tree management plan or public land permit is approved.

The bond would be returned at a minimum of a year after the completion of the nearby works. The maximum bond term would be three years.

A tree protection officer would confirm no evidence of damage to the tree before the bond is returned.

The minimum bond amount would be whichever is greater of the tree's calculated value or $3000. The maximum amount would be three times the tree's value, except in cases where exceptional trees are at high risk of damage.

City Services Minister Chris Steel said the laws would help protect and grow the tree canopy, reduce the urban heat island effect, lessen the impact of climate chance and retain the capital's leafy character.

"They will also disincentivise property developers from removing or damaging trees, encouraging more sustainable building design practices," Mr Steel said.

For the first time, if a tree is approved for removal, more trees must be planted to ensure our tree canopy continues to grow."

The government will on Thursday release the Urban Forest Bill 2022 for public consultation, following a review of the Tree Protection Act 2005.

The laws would place regulation requirements on all trees on public land, while more established trees on private land would be regulated under the changes.

Privately owned trees over 8 metres tall or wide, or with a trunk circumference of 1.4 metres, would be covered by the new regulations. The current laws only cover trees 12 metres tall or wide.

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The government said a canopy contribution formula would ensure new trees must be planted when a regulated tree is approved for removal.

"If new planting is not possible, a financial contribution (determined by a tree valuation formula) will need to be made to fund the planting and maintenance of trees nearby," the government said in a statement.

"For property developers, their replanting requirement or financial contribution will depend on the size and location of the tree they are seeking to remove and increase depending on the zoning of the land they are developing, with tree removal in higher density areas requiring more replanting (or higher financial contribution) to compensate for the high community impact of tree removal in these areas."

The ACT government previously committed to a 30 per cent tree canopy cover in Canberra by 2045, which will require 450,000 extra trees. A 2020 analysis showed the tree canopy cover in the city was 22.5 per cent.

The government allocated $14 million over three years in last year's territory budget to plant tens of thousands of trees.

"The suburbs with the highest canopy coverage, such as Isaacs, OConnor, Red Hill and Reid are cooler and have a lower vulnerability to urban heat, while suburbs such as Uriarra Village, Pialligo, Canberra Airport and Wright have very low canopy cover and high vulnerability to urban heat," a government report to the Legislative Assembly in November 2021 said.

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