The AsureQuality Voluntary Carbon Programme
We think a Voluntary Carbon Market (VCM) plays a critical role in Aotearoa New Zealand’s transition to a low emissions economy.
AsureQuality is creating a voluntary carbon programme built on enhancing native ecosystems and supporting communities across Aotearoa.
The programme will meet growing demand for high-integrity carbon offsets that meet international standards. It will focus on indigenous biodiversity and provide a way for landowners to get compensated fairly for ecosystem restoration.
Why is this needed? What problem are you solving?
Reducing emissions is the goal for Aotearoa - but that won’t get us to where we need to be to meet our commitments under the Paris Agreement and our Zero Carbon Act. We need to increase our carbon sinks, but not at the expense of our cherished indigenous species or livelihoods. We see these big problems:
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Big Problem #1 |
Big Problem #2 |
Big Problem #3 |
Big Problem #4 |
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Aotearoa New Zealand is running out of time to reduce our net* GHG emissions to meet our international and domestic commitments. We need to scale up planting of permanent forest - but not using exotic monocultures. |
Companies looking to offset their unavoidable GHG emissions are stuck: no domestic programme issues internationally-accredited voluntary carbon credits – units in the NZ Emissions Trading Scheme (ETS) don't meet international VCM criteria. |
Landowners are looking for complementary low-emissions land-use options, that also generate revenue. Registering fast-growing exotics like pinus radiata in the ETS is often the only sensible financial decision, sometimes resulting in wholesale conversions of productive land and impacting rural communities. |
Ecosystem restoration and native biodiversity enhancement are critically underfunded and lack market-based solutions to increase action. |
*we’re talking about our Nationally Determined Contribution, which is our commitment under the Paris Agreement. It’s calculated by totalling total emissions minus total removals (e.g. carbon taken up in trees).
We aim to solve these connected problems, giving more options to both landowners and credit buyers, while scaling up planting of native vegetation across the motu.
So what’s your plan?
Our plan is to create and manage a voluntary carbon scheme that will support a rapid scale-up of native biodiversity across Aotearoa New Zealand. Following international best practices, it will focus on native ecosystem restoration, starting with Afforestation, Reforestation and Revegetation (ARR). In the future we are open to expanding the programme to include other ecosystems and activities and explore incorporation of biodiversity credits.
Aren’t there existing international voluntary carbon standards and programmes? Why not use one of them?
We don’t want to reinvent the wheel. But international programmes have been prohibitively expensive to use for New Zealand indigenous ecosystems to date. Instead, a local programme can be customised to local needs, improving accessibility and cost efficiency while meeting global criteria for high integrity:
- We aim to streamline scheme participation to make it financially and practically accessible to a wider range of local landowners and communities.
- We can design explicitly to meet ICVCM requirements, and translate those requirements for our changing legal, economic and environmental context.
- We can design the programme for Aotearoa's unique ecosystems and communities.
Is there demand for this type of carbon credit?
New Zealand companies have been purchasing around 850,000 tonnes of carbon dioxide equivalents (CO2e) voluntarily each year. This is anticipated to grow as the Paris Agreement targets approach, carbon-related disclosures and trade access issues flow through economies, and companies increase their ambitions around net emission reductions for their supply chains. Estimates suggest demand of between 7-44 million tonnes of CO2e between 2023 and 2035. In our preliminary conversations to date, we’ve been overwhelmed with interest and positive feedback.
What makes AsureQuality the best placed organisation to deliver this?
AsureQuality has been supporting farmers, producers and landowners locally for over 150 years. We're uniquely positioned through:
- Reputation and experience: a strong track record in assurance and certification services, with established governance and systems.
- State-Owned Enterprise (SOE): As an SOE, we hold a position of integrity, trust, and longevity; essential for market confidence.
- Independence: separation from carbon project development and credit sales avoids conflicts of interest, enhancing credibility.
- Resources and stakeholder relationships: strong relationships with government, industry, and councils.
What are your timeframes?
We’re at the start of this journey but moving fast. We’re currently confirming feasibility and viability with early consultation planned for March 2025, and wider public consultation later in 2025. Our goal is to have more than one pilot project underway (with plants in the ground) by August 2025 and begin the international accreditation application process in parallel with this. If initial viability is proven, we would anticipate the first credit issuance in late 2026.
How can I be involved?
If you’d like to discuss scheme funding, our pilot programme, or wish to offer technical advisory assistance, please contact sustainabilityassurance@asurequality.com.
If you’re interested in learning more and keeping up to date with our progress, subscribe to our mailing list
Frequently Asked Questions
Who will be involved?
| Role | Role Description |
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Project developer |
Carbon experts who advise landowners on carbon development, manage technical documentation and project design. |
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Forest Manager |
Design and implement forest management as part of, or alongside, Project Developers. |
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Landowners |
Owners of land titles where carbon may be developed. |
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Carbon scheme/programme and standard |
Sets the requirements, approves projects, and issues carbon credits. |
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Validation and Verification Body (VVB) |
Approved independent auditors who validate project documentation and verify GHG removal statements for carbon credits. |
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Carbon Credit Registry |
A technology platform that records carbon projects, credits, and transactions, and may facilitate buying and selling of credits. |
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Credit buyers/end users |
End users purchase and retire carbon credits to offset emissions, while buyers may purchase without retiring, allowing for resale. |
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Intermediaries: Carbon Brokers, Carbon Traders, Certification bodies, Consultants |
Intermediaries help end users purchase carbon credits. Carbon traders buy and sell credits, while brokers arrange trades without holding credits. Certification bodies validate credit retirements for carbon-related claims. |
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Government agencies and departments |
Develops and enforces legislation and regulations for carbon markets, including land tenure, contracts, and fair-trading laws, as well as carbon-specific laws and policies. Establishes approval processes for market participants. |
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Community and advocacy groups |
Organisations with interests in VCM, like native forest restoration, may support landowners and provide public endorsements, regardless of formal roles. |
What will the scheme involve?
The scheme will include governing rules, standards, and methodologies, focusing on indigenous ecosystems and rural livelihoods.
What are the risks?
Supply-side risks in the VCM primarily affect landowners and project developers. These risks include:
- Ability to access up-front capital and finance, and meeting compliance costs.
- Landowner confidence in engaging with carbon markets and perceptions of voluntary carbon credits.
- Confidence in selling generated carbon credits and the commercial viability of current carbon prices in NZ.
- Ability to market the co-benefits of NZ voluntary carbon credits compared to overseas credits.
- Decision-making regarding alternative land uses, including ETS participation.
- Potential changes in laws and regulations that may restrict carbon project development.
Demand-side risks in the VCM include:
- Lack of willingness to purchase carbon credits, reducing supplier confidence.
- Challenges in getting carbon credits recognised by certification bodies and stakeholders.
- Low commercial incentives due to insufficient regulations or financing requirements for emissions reductions.
- Low confidence and understanding of carbon credits, markets, and climate actions.
- Difficulty in identifying secure, high-integrity carbon products, leading to risks of greenwashing, fraud, or reputational damage.
How does AsureQuality plan to manage these risks?
We will manage market supply and demand risks through multiple actions. These include:
Market Confidence:
- Ensure high-integrity measures in Scheme and Standard design, such as independent verification and high-quality registry.
- Seek formal ICVCM recognition.
- Invest in stakeholder engagement and market education.
- Provide transparency via the website and Registry.
Government Oversight: we will support and advocate for policy development to strengthen the quality and integrity of the NZ VCM, demonstrating the feasibility and value of increased government oversight.
Access to Finance: we will support initiatives to improve access to carbon project finance by collaborating with financial providers and supporting grant-based finance pathways. As a SOE, we are seen as a lower-risk, attracting more traditional finance providers.
Supporting Demand: we will enhance demand signals by providing infrastructure that supports buyers' needs, engaging with credit buyers, and conducting market education. Strong marketing and messaging will encourage participation and boost confidence in NZ-made, biodiversity-based carbon credits.
How will you ensure the integrity of the credits produced?
AsureQuality as the programme owner will not act as a project developer nor be involved in project development or credit sales. The scheme mandates independent validation and verification of projects and an independently-operated credit registry (where credits are issued and traded).
Landowners' carbon credits will not offset their own emissions but be sold to buyers, transferring the carbon benefit to the buyer when they retire the credits. Companies that track and report their emissions can use these credits to offset their unavoidable emissions.
Effective monitoring, reporting, and verification (MVR) is crucial for a high-integrity carbon scheme. We will use modern technology to make MVR cost-efficient and accessible, ensuring transparency and building confidence among credit buyers, rural communities, and the NZ public.