Tasmania's Lower House has passed historic legislation designed to end 30 years of conflict over logging in the state's native forests.

The final deal will bring almost $400 million worth of state and federal funds to Tasmania to restructure the industry and create new reserves.

But the compromises made along the way have left the Australian Greens to deem the final result almost worthless.

Tasmania's Parliament passed the crucial legislation on Tuesday evening, 13 votes to 11.

The Premier, Lara Giddings, told Parliament the deal would be an historic turning point and would secure the industry's future.

"History has shown us that no conflict can go on forever. Every war must come to an end," she said.

Federal Environment Minister Tony Burke flew into Hobart to celebrate.

"The rest of Australia has not come close to being able to achieve what Tasmania achieves today, and that is a solid conservation outcome with a solid economic future," he said.

But the mood in the gallery was far from celebratory, with many disappointed over amendments made by the Upper House two weeks ago that effectively delay the creation of formal reserves.

Greens MP Kim Booth was the only member of the Labor-Greens minority Government to cross the floor and vote against the legislation.

"It does not give protection beyond the World Heritage Area, which I'm very, very pleased has been sent to Paris," he said.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 3 minutes 48 seconds 3 m 48 s Tasmanian Parliament supports historic forest peace deal ( Felicity Ogilvie ) Download 1.7 MB

"It does not give permanent protection to any of the other 504,000 hectares that are mentioned as areas that should be reserved."

The leader of the Australian Greens, Christine Milne, does not support the deal either.

The vote ends more than three years of negotiation between industry and environmental groups to reduce the amount of logging in native forests.

The deal aims to halve the state's timber industry and protect a further half a million hectares of forest.

The first 80,000 hectares will be protected immediately.

The rest will not be up for formal protection until at least October next year.

'Only pathway forward'

Key environmental groups were upset at the changes made by the Tasmanian Upper House and only decided to support the deal at the last minute.

The Wilderness Society's Vica Bayley says the Upper House amendments shook the confidence of environmental signatories.

"The amendments don't reflect the agreement, but what we have done is to try to restore confidence by alternative measures," he said.

"[They are] things such as transferring the management of future reserves from Forestry Tasmania over to Parks and Wildlife.

"Things like a very strong commitment from Forestry Tasmania not to log the future reserves.

"It is utterly clear that this is the only pathway forward."

Some environmentalists have vowed to continue protests against the deal.

Resources Minister Bryan Green now has 30 days to table an order to start the process of reserving the forests.

The legislation does not need to go back to the Upper House.