The ETS was created in 2008. It is one of the Government’s main tools to reduce its greenhouse gas (GHG) emissions and reach net-zero in 2050. The NZ ETS covers about half of total GHG emissions in New Zealand. Large polluters (like oil or steel companies) must report their GHG emissions annually to the Government and surrender an equivalent number of carbon credits. On the other hand, a major source of carbon credits comes from New Zealand forests. ETS Forestry participants are entitled to receive one carbon credit (called a New Zealand Unit - or NZU) per tonne of CO2 removed for registered post-1989 forest land, for either introduced or native species. Once registered, forest owners can claim NZUs for the amount of carbon stored as the forest grows every year. Forest owners also need to repay their units earned if the forest is harvested or if they exit the scheme. If you want to know more about forestry in the ETS, you can visit Te Uru Rakau’s website.

Compliance markets are regulated by mandatory national or regional schemes, such as the NZ ETS. They are a tool for countries or states to reduce their emissions faster. Compliance participants are required to reduce emissions, and if they cannot, they must purchase carbon credits.

Voluntary offsetting is a tool for anyone, either individuals, companies or the public sector, to take climate action beyond a legal requirement. Purchasing carbon credits on the voluntary market is often used to reach carbon neutrality, which means to reach a balance between emitting GHG and absorbing GHG from the atmosphere.

If you would like either sell or buy units, please get in touch with us and we will send our Terms of Trade as well as the detailed process.

Trees absorb CO2 from the atmosphere and store it in their trunks, branches, leaves and roots. The amount of carbon stored in a forest depends on species, stocking, site conditions such as soil and rainfall, and how long the forest is left to grow. The longer a forest is protected and maintained, the better the climate and environmental outcome.

The amount of CO2 absorbed each year by a forest is calculated by the New Zealand Government. Once verified, the Government issues one NZU (carbon credit) to the forest owner for every tonne of CO2 that has been removed. The forest owner can decide to do a carbon claim every year, or a mandatory one every five years.

You can visit Te Uru Rākau website to know more about the NZ ETS for the forestry sector.

Canopy is the government website all about the environmental and economic benefits of growing trees in New Zealand for landowners.

You need an Emissions Trading Register (ETR) account to trade carbon credits. You can find more information about this here.

The latest Climate Change Commission Report and forestry recommendations: Ināia tonu nei: A low emissions future for Aotearoa.

We have 7 years to save the planet: IPCC Special Report 2018 on global warming of 1.5C.

Forests are key to reverse global warming: find out why with the IPCC Special Report 2020 Climate Change and Land.

To learn further about the impacts of climate change and environmental degradation in New-Zealand, check out the latest report by Ministry for the Environment.