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  • CarbonCrop Team

CarbonCurious: How do carbon credits work?

Webinar recorded: 10/11/22

Are you curious about carbon credits? Do you want to know how they work?

In this webinar, CarbonCrop team members Kevin Nass and Rowan Sprague explain what a carbon credit is, how the New Zealand Emissions Trading Scheme (NZ ETS) works, and how CarbonCrop helps you get registered for carbon credits in the NZ ETS.

“Our aim is to demystify the ETS and Carbon Credits” - Rowan Sprague, CarbonCrop

What is a Carbon Credit?

Carbon credits are awarded for sequestration, and one carbon credit should always equal one tonne of CO2 (or CO2 equivalent). In the New Zealand Emissions Trading Scheme carbon credits are called New Zealand Units (or NZU).

The price of carbon credits changes, and to keep track of the spot price for NZUs you can visit

How do carbon credits work?

Carbon credits can be issued or surrendered. If you have eligible forests your forest can be issued carbon credits for the carbon removed from the atmosphere. If you pollute and add carbon into the atmosphere you may have to surrender carbon credits, this means that they have to pay for the carbon they're emitting.

What is the ETS?

The ETS is the emissions trading scheme - it acts the 'in between' for the emitters and the forest growers. In New Zealand it is run by the government, and it is part of the compliance market and has regulations for both sides of the market.

The Ministry for Primary Industries (MPI) approves forests for carbon credits, and polluters can then buy these credits to offset their emissions.

Where does CarbonCrop fit?

CarbonCrop works on the 'supply' side, helping landowners evaluate their land's potential for carbon credits and help them to register their forests into the ETS. We also help with the on going administration and compliance requirements over the 10 year contract term.

How CarbonCrop can help you

CarbonCrop consider ourselves native specialists, with a focus on helping more complex forests get registered for carbon credits. Out of all forests CarbonCrop has submitted into the NZ ETS, over 80% have been native forests. CarbonCrop's average acceptance rate for forests entered into the ETS is 95%, above the average, and especially good for native forests.


To find out what you've got and what it's worth, apply for a free Land Assessment today.


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