The Government has announced that it will be taking on a new assurance role to support the development of New Zealand’s voluntary nature and carbon markets and attract new investment in carbon removal, emissions reduction and nature-related projects.
However, questions remain as to how this framework will operate in practice for project developers, landowners and investors.
New Zealand offers many opportunities for nature-related and emissions reductions projects. Nature-related or emissions reduction projects include things like afforestation, revegetation (particularly with native forests), wetland restoration and habitat protection. While some projects (primarily post-1989 forestry) may be eligible for recognition under the New Zealand Emissions Trading Scheme (NZ ETS), other investments may not qualify, or participation in the NZ ETS may be unattractive for various reasons. This is despite their value in combating climate change and/or regenerating natural environments.
Voluntary carbon and nature markets offer a potential avenue to secure funding for projects that fall outside of the NZ ETS. These markets often operate similarly to an emissions trading scheme, with landowners/project developers generating credits for actions which remove greenhouse gases from the atmosphere or restore nature. Those credits can then be sold to, and potentially traded with, individuals and businesses wanting to offset emissions, meet voluntary climate commitments or demonstrate support for nature-positive initiatives. However, such markets have historically been controversial overseas, with concerns regarding their integrity, including whether carbon and other nature-based claims can be scientifically validated.
The Government’s announcement
In an effort to promote confidence in such markets, the Government is proposing to take on a new assurance role, providing a form of “warrant of fitness” for voluntary markets to provide confidence for investors1. Specifically, there would be two pathways:
- high-quality schemes already accredited by international bodies would be recognised by the Government from the outset; and
- domestic schemes would be eligible for a New Zealand endorsement pathway, under which an independent assurer would assess the scheme against New Zealand market principles designed to align with international best practice.
Such government endorsement would not act as a guarantee, but is intended to provide a quality signal.
The Government will also be opening public conservation land to privately-funded nature and climate projects capable of offering benefits beyond what the Crown already funds. Such projects would be subject to existing Department of Conservation concession requirements, which are themselves currently the subject of separate reform proposals2.
Building on previous work and pilot programmes
The announcement, on 11 May 2026, builds on previous efforts in this space. Public consultation on a biodiversity credit scheme was undertaken in 2023 (see our article here). In June 2025, the Government further signalled its intention to support the expansion of voluntary nature credits markets in New Zealand.
Ten privately-funded pilot projects have been undertaken to help assess the Government’s potential role in such markets, including the potential for a government-endorsed quality mark. These included projects seeking to validate indigenous afforestation and revegetation projects under an international voluntary carbon credit standard as well as seeking to develop a methodology suited to New Zealand environments for certification providers3.
Next steps
While the announcement affirms support of voluntary markets, there is limited detail on what these pathways would look like in practice. The Government’s 2025 announcement suggested that factors such as durability, measurability, transparency and respect for the rights of Māori and local communities will be key considerations in assessing the integrity of schemes. However, no detail has emerged on how such factors will be assessed.
The Government has indicated that the endorsement pathway for New Zealand voluntary carbon and nature schemes will be opened in the coming months. Applications to use public conservation land for privately funded projects will also open later this year. We therefore anticipate further guidance and regulatory detail in this space soon.
If you have any questions about this article, please get in touch with the contacts listed or your usual Bell Gully adviser.
1See the Government’s announcement here.
2See the Government’s announcement of the Conservation Amendment Bill here.
3 See details from the Ministry for the Environment on voluntary nature and carbon markets in New Zealand here.
Disclaimer: This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
