Frequently Asked Questions

In Aotearoa, landholders become carbon farmers by registering for carbon credits under the Emissions Trading Scheme (ETS) or voluntary market with CarbonCrop Units (CCU). When you successfully register areas of land you will receive carbon credits which can be traded within the New Zealand emissions market. Few landholders become carbon farmers exclusively, with most registering specific areas of land to support their primary farming activities.

CarbonCrop was founded in 2020 with the goal of using Artificial Intelligence to help landholders pull a billion tonnes of CO2 out of the atmosphere and lock it up into trees. Discover more about CarbonCrop's mission here

Since launching in 2020 CarbonCrop has made a significant impact on the carbon market including: Assessing over 4,000,000 hecatres of land in New Zealand Analysing over 5,000 farms for carbon removals Registering over 300 farms (or over 10,000ha of NZ forest) into the Emissions Tranding Scheme (ETS) Registering over 1000ha of native forest for carbon credits in the Voluntary Carbon Market Paying over $35,000,000 in carbon revenue to landholders across NZ Removing 350,000T carbon through forests in NZ

The CarbonCrop team is a growing team of machine learning engineers, solutions / systems engineers, forestry specialists, carbon analysts, and marketing professionals based throughout New Zealand, all committed to helping landholders to access incentives for their carbon removals, and businesses to reach their net zero goals with confidence. Meet the team.

A spin-off from the Nelson Artificial Intelligence Institute, where the core of our original solution was conceived, we are a technology company at heart. At CarbonCrop, we’ve created technology that enables scalable monitoring and verification of carbon removals over vast areas of mixed species biodiverse forest, with high precision. The use of AI technology to assess forests, calculate carbon sequestration, monitor for reversals, and speed up the process of issuing carbon offsets at scale. We’re focused on sustained improvement in everything we do, including with our technology, so we can continue to put the power into the hands of the customers.

Discover how CarbonCrop helped Lake Hawea Station untangle the ball of wool to provide net-zero wool for the first carbon neutral shoe, or watch how CarbonCrop is supporting Lake Hawea Station count their carbon removals. Check out our other landholder stories and Native CCU customer stories to discover how CarbonCrop has helped to turn carbon removals into an asset.

CarbonCrop builds software, backed by machine learning and automations, to measure, monitor, and monetise carbon removals at scale. Our platform serves landholders, forestry specialists, and businesses make the most of their carbon removals at scale.

CarbonCrop helps farmers to restore forest, store carbon and get paid. We do this by providing you with the tools you need to make the best decisions for your land, this includes: Visibility of your carbon removals, with easy to understand reporting on current carbon removals and forecasting for future removals for forest areas. Maximising the carbon potential, showing you all the eligible forest areas for the ETS (including natives) and making it easier to collaborate with farm and forestry consultants. Earn more from the carbon you already have with options in the voluntary carbon markets

Yes. But you don't have to take our word for it. Our customers have trusted us to analyse over 5,000 farms for carbon removal potential, register over 300 farms into the ETS with us, and build carbon removal programs together. Check out our landholder stories to see how CarbonCrop has helped landholders across New Zealand unlock their carbon earning potential, discover how CarbonCrop has supported Lake Hawea Station in their carbon removal journey, or understand how CarbonCrop's technology helped All Birds to achieve their first Net Zero shoe. We understand that reading negative articles can be alarming, especially in a space that is so important, but also so new. If you want to understand what the articles were discussing you can check out our blog post on it here, and if you're interested in learning more about the Native CarbonCrop Unit product and methodology, click here.

CarbonCrop is a software platform that lets you manage carbon removals in your own metaphorical backyard without resorting to DIY. Our MRV (measurement, reporting and verification) software helps sustainability teams measure, track, and monetise their supply chain carbon removals in near real-time.

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CarbonCrop is based in New Zealand, with our Head Office in Nelson and team members throughout the country.

Check out our careers page for the latest job opportunities at CarbonCrop.

We work with landholders, carbon / forestry advisors, and businesses. If you have forest on your land, or in your supply chain, we can usually help you to understand what you have and what it could be worth.

Check out our Investors Page for more information around investing in CarbonCrop and to reach out for a chat.

If you're keen to write about CarbonCrop, or would like to interview our co-founder Nick reach out to us via our contact page, or check out our media page.

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There are some key criteria your forest needs to fulfil to be eligible for the Emissions Trading Scheme (ETS), this includes: Minimum of 1 hectare in area Minimum of 30 meters wide Achieve at least 30% canopy cover Achieve at least 5 meters in height Be established after 1990 You can check out our blog on forest eligibility criteria here, or watch our CarbonCurious session on it here.

We are currently working on new tools to give all landowners with eligible forests options to access carbon credits. This means we are not doing any land assessments right now. If you would like to stay in touch so you are the first to hear when our new tools are available, register your interest HERE If you are unable to wait, we suggest you get in touch with a forestry consultant in your area.

Ultimately we can only provide you with the information you need to make an informed decision around carbon credits and the ETS. You know your land best and if registering your forest areas for carbon credits under the ETS, or any other scheme, is the best decision for you.

When you register for carbon credits, under the Emissions Trading Scheme (ETS) or any other carbon program, you commit to several key responsibilities and obligations: Forest Management Maintenance and Growth: You must ensure your forest remains healthy and continues to grow, which may involve pest control, fencing, and other maintenance activities to keep the forest thriving. Permanence: For permanent forest registration, the commitment is to keep the forest intact for at least 50 years, without harvesting. This helps ensure long-term carbon sequestration. Administrative Duties Monitoring and Reporting: Regular monitoring of carbon stock changes is required. This includes filing Mandatory Emissions Returns (MER) at the end of each emissions return period (usually five years) and Voluntary Emissions Returns (VER) annually to claim the maximum number of credits. Adherence to Legislation: Keeping up with changes in ETS legislation and ensuring compliance with all regulatory requirements is essential. Reversal Management Accidental Reversals: If the forest suffers an accidental reversal (e.g., due to a storm), you are obligated to restore the forest and will not receive new credits until the carbon stock reaches the previous level. Deliberate Clearing: If you deliberately clear the forest, you must secure and surrender a volume of carbon credits equivalent to what was issued to that area. Transfer of Obligations Land Sales: If you sell the land, the obligations tied to the carbon credits do not disappear but transfer to the new owner. This ensures the continuity of the commitments associated with the carbon credits. You can learn more about your obligations in this blog post.

Registering your forest for carbon credits can provide numerous benefits, both environmentally and financially. Here are some common reasons: Financial reasons: Earn and sell carbon credits to reinvest in your restoration activities, pest control programs, or support further decarbonising activities. Environmental Benefits: Mitigate climate change, enhance biodiversity, and improve soil and water quality. Social Responsibility: Align with sustainability goals and improve community relations. Regulatory Compliance: Stay ahead of environmental regulations. Land strategy: reduce erosion, improve soil and water quality, and optimise land use Personal choice: Leave a legacy for future generations

The number of carbon credits you can earn per hectare varies based on several factors, including the type of forest, species of trees, the age of the forest and management practices. Native forests tend to earn less on average than exotic forests, but offer other benefits. With all of these factors it's difficult to provide exact numbers, but we suggest reviewing MPI's look-up tables for a starting point on removals per forest type.

Carbon farming captures and stores CO2 through sustainable agricultural practices, offering environmental, economic, and social benefits. It helps mitigate climate change, improve soil health, and provide additional income through carbon credits. In New Zealand, landholders can become carbon farmers by registering for carbon credits. This can be done through: The Emissions Trading Scheme (ETS) Voluntary Carbon Market (e.g., CarbonCrop Units - CCUs) How It Works: Register Forest Areas: Successfully register areas of your eligible forest under a carbon market scheme. Receive Carbon Credits: Earn carbon credits for the carbon sequestered in these registered forest areas. Sell Credits: Sell these credits in the carbon market via platforms like emsTradepoint. While few landholders become exclusively carbon farmers, most register specific areas of land to support their primary farming activities, providing an additional revenue stream or protecting their forest restoration efforts.

Gorse alone isn’t considered forest. However, once a certain density of tree species is present, the ETS (emissions trading scheme) considers it to be regenerating forest. It can be difficult to determine whether tree saplings were established under the gorse back in 1989, but carbon credit eligibility often depends on this. You can read more about this here. A few things to consider: Gorse as a Nursery Crop: Gorse facilitates native bush regeneration, which can help maintain a pre-1990 classification. Carbon Credit Implications: Pre-1990 forest land has specific ETS rules that are crucial for managing liabilities. Pre-1990 Forest Land: This includes land that was forested with more than 30% tree cover on 31 December 1989, or land capable of reaching this threshold. Land Use Continuity: The transition from gorse to native bush preserves the pre-1990 forest land status.

Deforestation is defined as the conversion of forest land to another land use, or the long-term reduction of tree canopy cover below 30% on forest land, without re-establishment of forest within four years. This applies to both pre-1990 and post-1989 forest lands under the NZ ETS. Key Points Change in Land Use: If forest land is converted to a non-forest land use, such as agriculture or urban development, it is considered deforested. Reduction in Tree Canopy Cover: A reduction in tree crown cover to below 30% that is not restored within four years also constitutes deforestation. Regulatory Obligations: Pre-1990 Forests: Landowners must surrender carbon credits (NZUs) equivalent to the carbon stock lost due to deforestation. Pre-1990 forest land cannot earn carbon credits but has obligations if deforested. Post-1989 Forests: Landowners can earn carbon credits for carbon sequestration but must also surrender credits if the forest is deforested. Reforestation Exception: If a deforested area is replanted and the tree crown cover is restored to more than 30% within four years, it may not be classified as deforestation.

Yes, you can remove your forest from the New Zealand Emissions Trading Scheme (NZ ETS), but there are significant considerations and potential costs involved. Here’s what you need to know when removing your forest from the NZ ETS: Paying Back Credits When you remove your forest from the ETS, you must pay back the "unit balance" of the land. This balance is the total number of carbon credits (NZUs) that have been issued for that forest. This means you need to surrender the equivalent amount of credits you have earned, which can be substantial depending on the size and age of your forest​​. Permanent Forest Category If your forest is in the permanent forest category, you have committed to keeping it in this category for at least 50 years. After this period, you have the option to either keep it in the permanent category for another 25 years, switch to the standard forestry category with averaging accounting, or remove it from the ETS. Removing it at this stage also requires paying back the unit balance​​. Reforestation Requirement If you remove your forest and do not reforest the area within four years, this is considered deforestation. You will then have to surrender additional credits equivalent to the carbon stock lost​​. Financial Implications Deregistering a forest can be very costly if you have sold the carbon credits you have earned. Considerations - Forest Act Regulations After a long period, your regenerating native forest may be protected under the Forests Act 1949, meaning you cannot clear it without a sustainable forest management permit from MPI, adding another layer of complexity​​. To learn more about your obligations under the ETS check out our CarbonCurious session here.

As of 2024, there are no explicit rules that prohibit grazing within areas that are registered in the ETS. However, stock exclusion may be required to ensure that the forest can grow to 5 metres in height and 30% canopy cover. Benefits to excluding stock include: Regeneration Protection: Livestock can damage young trees and prevent forest regeneration by trampling and grazing on seedlings. Excluding stock ensures that the vegetation can grow undisturbed. Forest Health: Keeping livestock out can help to maintain the health and density of the forest, which is crucial for optimal carbon sequestration. Potentially Higher Carbon Sequestration: Healthy, undisturbed forests tend to sequester more carbon, increasing the number of credits you can earn. Improved Habitat: Excluding livestock can help to maintain a diverse and healthy ecosystem, providing habitat for various plant and animal species. Soil Health: Forested areas with no livestock pressure typically have better soil structure and health, which can also contribute to forest health.

Yes, there are different carbon accounting methods in the New Zealand Emissions Trading Scheme (NZ ETS). These methods determine how carbon sequestration and emissions are calculated for forestry participants. Here are the primary carbon accounting methods used in the NZ ETS: Stock change accounting - Stock change accounting measures the annual change in the carbon stock of a forest. This method is no longer an option for new registrations. Averaging accounting - Averaging accounting is a newer method introduced to simplify the process and reduce the risk of liabilities for forest owners. Permanent Forest Accounting - This initiative provides another pathway for earning carbon credits by maintaining permanent forests. Read more about the different accounting methods in this blog post.

After 50 years in the New Zealand Emissions Trading Scheme (NZ ETS), the obligations and options for forest landowners depend on the specific carbon accounting method and forest category they are using. Here are the key scenarios: Permanent Forests Maintain Permanent Registration: Continue to keep your forest registered as a permanent forest. Switch to Averaging: Change your forest registration from permanent to averaging. Exit the ETS: Deregister your forest and exit the ETS (note: this requires repaying the carbon credits earned). Averaging Accounting No Immediate Action Required: You will have obligations around ongoing forest management. Harvest and Replant: You have the option to harvest and replant the forest - but if you do cut down the existing forest you MUST replace it. You can learn more about your obligations in this post

Yes, as long as it doesn’t break the covenant conditions. If you want to know more check out our blog post.

CarbonCrop uses technology to measure and monitor carbon removals on your land, providing precise and reliable data. To learn more about how our tech works you can check out this blog post. Measuring Carbon Removals Remote Sensing: We use aerial and satellite imagery to gather carbon stock data. Digital elevation maps and LiDAR technology help us measure terrain and tree height. Machine Learning: A typical farm can track thousands of data points or millions of ‘pixels’ to give a comprehensive picture of carbon stock and ongoing carbon removals across each square metre of land. Our machine learning (AI) models stitch together these data inputs to calculate forest carbon stocks and sequestration. Monitoring Carbon Removals Continuous Tracking: Our forest loss model, Flossy, tracks changes in forests to detect any reversals like forest loss. CarbonTracer: CarbonCrop's CarbonTracer tool lets you trace carbon units back to specific forest blocks, supporting tracking and traceability.

The specific costs can vary based on the size of land, scheme entered into, and forest type. It's important to understand these details to get a clear understanding of the financial commitments and potential carbon returns.

Getting paid for carbon removals really depends on the scheme your forest is registered for. If your forest is registered for the Emissions Trading Scheme (ETS) If your forest is registered for the ETS you will typically follow a process similar to this to get paid for your forest carbon removals: 1. At the start of every year you will need to file an emissions return. 2. MPI will issue the carbon credits for the carbon removed - this will be put into your holding account. 3. You can then choose to sell these units, or leave them in your holding account. 4. To sell your units you will need to transfer them to a marketplace like emsTradepoint. 5. Once in the marketplace you can sell the carbon removal units and you will be paid. If your forest is registered in the Voluntary Carbon Markets (VCM) If your forest is registered in the VCM the process to get paid for your forest carbon removals may differ depending on the program. If you're registered for CarbonCrop Units (CCUs), you may follow a process similar to this: 1. CarbonCrop will assess your forest for the carbon removals, and allocate your CCUs based on this. 2. You can then decide what you do with these units, if you decide you want to sell you will need to find a buyer - this is typically done through a marketplace (e.g. CarbonZ). 3. Once your units have been sold, you will be paid for these units. If your forest is registered for Carbon Removals If your forest is registered for carbon removals the process to get paid for your forest carbon removals may differ depending on the program, and who you are supplying carbon removals to. We recommend reading our blog on carbon sovereignty to understand this process and things to look out for when signing up to a carbon removal program.

CarbonCrop Units (CCUs) are carbon units (or credits) issued by CarbonCrop, representing a verified amount (one tonne) of carbon dioxide (CO2) removed from the atmosphere by forests registered with CarbonCrop. These units are typically used in the voluntary carbon market (VCM) to help businesses and brands offset their carbon emissions.

You may be able participate in CarbonCrop if you have existing forestry or land-use agreements, but there are several factors to consider to ensure compatibility and compliance with those agreements. Review Existing Agreements Carefully review the terms and conditions of your existing forestry or land-use agreements. Look for any clauses related to land use changes, carbon credits, or environmental commitments. Identify any restrictions or obligations that may impact your ability to register your land with CarbonCrop. Some agreements may have exclusivity clauses or specific land management requirements that could affect participation. Compatibility with CarbonCrop Determine if your existing agreements can be integrated with CarbonCrop’s program. This may involve coordinating with your current agreements to ensure that all parties are aware of and agree to the new carbon credit activities. In some cases, it may be necessary to amend your existing agreements to include provisions for carbon credit generation and trading. Legal and Compliance Considerations It is advisable to seek legal advice to understand the implications of participating in CarbonCrop while under existing agreements. A legal expert can help navigate any potential conflicts and ensure compliance with all contracts. Communication with Stakeholders Communicate with all stakeholders involved in your existing forestry or land-use agreements. This includes landowners, leaseholders, forestry managers, and any other relevant parties.

As a landholder in CarbonCrop's programme, your responsibilities include maintaining forest health, complying with reporting and regulatory requirements, facilitating monitoring and verification, managing carbon credits, committing to long-term forest cover, and adhering to legal obligations. You can read more about your responsibilities on the "Landholder" page on the CarbonCrop website.

Yes, changes in land use can significantly affect your carbon credits. Here are some of the ways in which land use changes can impact your carbon credits: Reduction in Forest Cover Removing trees, reducing forest cover, or allowing activities that degrade the forest, such as overgrazing by livestock, can lead to a loss of carbon sequestration capacity resulting in a reduced carbon credit output or an inability to earn further carbon credits. Land Use Conversion Permanent changes that prevent the land from being forested again, or converting forested land to agricultural use will typically disqualify the land from earning further carbon credits. Temporary Changes and Reversals Events such as fires, storms, or temporary land clearing that result in a temporary loss of forest cover need to be reported. Natural disasters that cause accidental reversals of carbon sequestration can also impact your credits. While some programmes may have buffer pools to cover these losses, you still need to manage the restoration process. Reforestation and Afforestation Establishing new forests on land that was previously non-forested can generate additional carbon credits once the forest reaches a certain maturity level.

If your planting does not end up being accepted into the New Zealand Emissions Trading Scheme (NZ ETS), there are several options available to you: Ask for a review Under section 144 of the climate change response act 2020 you have a right to ask for MPI to review their decision around your forest. Explore the voluntary carbon market Your forest may be eligible for carbon removal credits under a voluntary carbon market scheme. Consider joining a carbon removal program If you're already a supplier to primary sector businesses in NZ you may decide to sign-up and use your new planting for this. Protect your forest wtih a covenant If carbon credits are not your ultimate goal, you may choose to explore a different method of protecting your forest by covenanting it.

Flossy is our forest loss detection model, who quickly scans satellite imagery of forested areas and detects where forest has been lost. With Flossy’s help, we can quickly check for changes in forest areas, report on those changes, and confidently submit emissions returns on behalf of our customers.

The price of carbon credits is influenced by several factors, including market demand and supply, regulatory frameworks, and the specific characteristics of the carbon projects. Because of this the price does fluctuate over time. As with any market things like demand changes, policy adjustments, and surplus supply can affect the price at any time. To stay on top of the carbon markets subscribe to our quarterly CarbonCopy newsletter where emsTradepoint provides a market update.

Carbon sequestration is the process of capturing and storing atmospheric carbon dioxide (CO2). At CarbonCrop, we focus on forest carbon sequestration, where trees absorb CO2 from the atmosphere and store it as carbon in their biomass (trunks, branches, leaves) and in the soil. How Does It Relate to Farms and Farming? Most farms have some form of forest, whether it's native bush blocks, exotic forests for harvesting, or riparian planting. These trees remove carbon from the atmosphere, providing an opportunity for farmers to access carbon credits for these removals.

Carbon credits are tradable certificates or permits that represent the right to emit one tonne of carbon dioxide (CO2) or an equivalent amount of other greenhouse gases (GHGs). They are part of a market-based approach to controlling emissions and incentivising carbon sequestration. You can read more about carbon credits in this blog post

Carbon farming and earning carbon credits offer numerous benefits to farmers, from additional revenue streams to improved biodiversity, and erosion control. Check out our landholder stories to discover how carbon credits have unlocked the value from on-farm forests.

Carbon sequestration can be effectively achieved on a range of land, ranging from marginal hill country through to silvopasture. You can read more about buying land for carbon credits here. Depending on the carbon credit scheme you are thinking about entering your forest, you may need to fulfil certain criteria. You can read more around which trees are most suitable for the ETS (emissions trading scheme) here.

Determining if your farm is eligible for carbon credits involves several steps. Here is a streamlined process to help you assess eligibility: Assess Your Land and Forests Identify Forest Areas. Determine the age and type of your forests. Understand Regulatory Requirements Get to grips with NZ ETS Criteria (if deciding on this scheme) Identify if your forest land falls under pre-1990 or post-1989 categories. Understand the accounting methods. If opting for alternative schemes under the voluntary carbon market, or through a carbon removal program, understand what your obligations are and what you are committing to. Conduct a Carbon Assessment Understand what you have, and what it could be worth by consulting with a forestry advisor.

Yes, participating in a carbon credits programme can affect your farming practices. These changes are generally aimed at maintaining forest health and ensuring compliance with the respective carbon credit schemes you forest is registered under. Examples include possible stock exclusion from forest areas, introducing forest management as part of your farm operations, or planting additional trees to increase forest areas.

The New Zealand Emissions Trading Scheme (ETS) is a central element of our national strategy to combat climate change, operating by placing a monetary value on carbon emissions. Within this framework, carbon credits are issued for initiatives that either reduce or capture carbon dioxide from the atmosphere. This is particularly relevant for farmers with eligible forests on their land. These forests, if they meet specific criteria, can be registered under the ETS to earn carbon credits. Farmers can then sell these credits, generating carbon revenue. This revenue provides a financial boost that can be reinvested into various farm activities, enhancing both profitability and sustainability.

CarbonCrop is a software platform that can help you see, access, and earn more from carbon removals from your land. Check out our landholder page to learn more about how we can help you.

You can start earning carbon credits from your forests the moment they are registered as long as it is removing carbon. If your forest is newly planted it may take a few years to start earning carbon credits.