Efforts to secure more habitat for koala protection have triggered a shortage of supply of native timber in NSW that will spur more intensive old-growth logging, environmental groups say.

The Berejiklian government on Tuesday briefed the groups, unveiling plans for new Coastal Integrated Forestry Operations Approvals (IFOA), calling the overhaul "a vital step forward" for the industry.

A koala in the Moree area of northern NSW. Land clearing is having a devastating impact on the koala numbers in the region. Credit:Nick Moir

Alix Goodwin, chief executive of the National Parks Association (NPA), said the rejig was prompted by a government decision this month to set aside about 24,000 hectares of Mid North Coast state forests to bolster koala numbers.

“We have been told that new protections for koala habitat will result in an annual shortfall of 10,000 cubic metres of saw logs promised to the timber industry," Ms Goodwin said.