Voluntary carbon and nature markets bodies endorsed by NZ govt

A government tick of approval for major carbon crediting schemes will give investors the confidence they need to invest in local climate and nature-based projects, the government says.

Associate Environment Minister Andrew Hoggard announced on Monday that the government is endorsing three international bodies that govern voluntary carbon and nature markets, and will also create a domestic pathway to accredit schemes.

As well as being able to invest in projects on private land, the government said scheme developers would be able to apply for Department of Conservation concessions to carry out projects on the conservation estate.

Voluntary carbon and nature markets allow polluters and emitters to earn credits by investing in schemes that remove emissions or restore nature.

That could include restoring wetlands, planting native trees, and protecting habitats.

Voluntary credits are separate to the mandatory emissions reductions required by the government from sectors that are part of New Zealand's emissions trading scheme.

They are verified and issued by dozens of different certification organisations, which in turn can seek endorsement from governance bodies that set standards for high-quality credits.

The government has endorsed three of these governance bodies: the non-profit Integrity Council for the Voluntary Carbon Market, the Coalition to Grow Carbon Markets, and the Paris Agreement's own Crediting Mechanism.

Landowners and developer could choose to get their project accredited through those bodies, or certifiers endorsed by them, which would act as "a quality signal" to investors, Hoggard said.

It was "not a Crown guarantee".

"But it gives investors, landowners, and developers a much faster way to identify high-quality operators."

Voluntary carbon markets have existed for years, but have attracted scrutiny about whether the impacts of projects are real.

A report produced by Deloitte, BNZ and The Nature Conservancy in March this year said investor confidence was weak because of "persistent integrity concerns, fragmented standards, regulatory uncertainty, and technical gaps".

Similar concerns have been raised about biodiversity credits, where benefits can be less easily measurable than a simple decrease in emissions.

Deloitte partner Louise Aitken, who co-authored the March report, said the government's announcement was welcome.

"For voluntary nature and carbon markets to scale, credibility must come first," she said.

"Aligning market frameworks with internationally recognised standards, and providing clear government recognition of trusted schemes, are essential to unlocking buyer confidence and private investment."

The report had found that the international voluntary carbon market could be worth $35 billion by 2030, she said.

"We want to be part of that and source that capital investment in New Zealand projects."

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