Toitū Envirocare To Extend Use Of New Zealand Forest Carbon Credits

Aotearoa New Zealand’s leading carbon certification and advisory services provider Toitū Envirocare will extend its provision of high-quality local forest carbon credits after announcing in 2023 it would transition away from them.

In November 2023 Toitū Envirocare announced it would transition away from New Zealand carbon credits issued under the PFSI (Permanent Forest Sinks Initiative) and PP89 (Permanent Post 1989 Forest category of the Emissions Trading Scheme) in order to align with global standards.

Toitū Envirocare Chief Science and Integrity Officer Dr Belinda Mathers said a sufficient supply of local credits that meet the global Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCPs) were expected to become available early in 2024, but these are taking much longer than expected to operationalise.

“Because expectations around supply have changed, our transition plan has been adapted to bridge the extended gap,” said Dr Mathers.

The CCPs are 10 fundamental, science-based principles for identifying high-quality carbon credits that create real, verifiable climate impact. They set a global benchmark for high integrity in the voluntary carbon market, ensuring quality consistency and progress towards the 1.5°C target.

International credits with a CCP label have been available within Toitū’s certification programmes for several years.

“Access to CCP-labelled New Zealand credits will give Kiwi businesses confidence, knowing they’re funding local carbon projects that stand up to heightened integrity checks,” said Dr Mathers. “This eases the pressure companies are increasingly facing from shareholders, regulators and the public to prove the credibility of their climate claims.

“Currently, very few New Zealand-based credits are tagged or assessed against ICVCM principles but that’s changing. Toitū is monitoring the voluntary carbon market for CCP-labelled credits and will transition to providing them exclusively once they are readily available,” said Dr Mathers.

In the interim, Toitū is continuing to use select local credits that meet its rigorous due diligence process. These are limited to New Zealand carbon projects that have been on Toitū’s supply books since its transition process commenced early last year.

“This means Toitū does still permit the use of select New Zealand credits, including some issued by PFSI and PP89 - those that pass our due diligence,” said Dr Mathers. “It also means we have fewer options for New Zealand credits, but our clients can trust the quality of those that pass our checks.”

There are three phases to Toitū’s CCP transition plan:

Phase 1: Establish access

Toitū is actively working to establish access to CCP-labelled New Zealand credits. The company permits the use of select New Zealand credits issued by the PFSI and PP89 schemes that have passed due diligence assessment.

Phase 2: Incremental rollout

The first CCP-labelled New Zealand credits are expected to become available in 2026 in limited quantities. Demand from Kiwi businesses is expected to exceed supply for a time. Toitū will introduce CCP-labelled New Zealand credits and continue to provide select New Zealand credits that pass its due diligence assessment.

Phase 3: Exclusive ICVCM

Once project supply of CCP-labelled New Zealand credits adequately increases to meet client demand, Toitū will offer CCP-labelled credits exclusively. The timeframe for this is uncertain and could take two to three years.

Toitū is audited annually by the International Carbon Reduction and Offset Alliance (ICROA) - ensuring its carbon credit services meet the highest global standards for integrity.

Toitū is piloting an improved approach to the accessibility of its carbon credit services. All businesses that have taken reasonable steps to measure, manage, and reduce their emissions – regardless of whether they hold a Toitū certification – can apply to participate under the strict criteria of the pilot.

For more information about Toitū’s rigorous approach to carbon credits, visit www.toitu.co.nz

ABOUT TOITŪ ENVIROCARE

Toitū Envirocare is New Zealand’s science-led standard-bearer for credible climate and environmental certification and solutions — trusted by leading businesses to deliver measurable impact, reduce risk, and unlock opportunity. Wholly owned by Manaaki Whenua – Landcare Research, part of the Bioeconomy Science Institute, Toitū Envirocare empowers organisations to measure, manage, and reduce their climate and environmental impact.

Its internationally aligned certification programmes — Toitū Climate Impact (Carbon Reduce, Net Carbon Zero, Climate Positive) and Toitū Enviromark (Bronze, Gold, Diamond) — provide businesses with credible certifications that demonstrate progress and commitment.

Accredited by JASANZ since 2008 for Carbon Reduce and Net Carbon Zero (Australasia's official accreditation authority that guarantees trusted, internationally recognised certification), certified as a B Corp, and holding ICROA approval to ensure the highest integrity in carbon credit sourcing and offsetting, Toitū Envirocare delivers rigorous standards combined with commercial insight to provide real climate credentials and real business impact. Learn more at toitu.co.nz.

ABOUT TOITŪ’S CARBON CREDIT SERVICES

Toitū Envirocare is New Zealand’s internationally approved provider of carbon credit services. Audited annually by the International Carbon Reduction and Offset Alliance - Toitū ensures its services meet the highest global standards for integrity. Clients must meet rigorous criteria before qualifying to engage with Toitū’s carbon credit services. Once qualified, businesses can trust that the carbon credits they fund are robustly selected, transparently retired, and aligned with leading climate science.

The Core Carbon Principles (CCPs) are ten fundamental, science-based principles for identifying high-quality carbon credits that create real, verifiable climate impact. Developed with input from hundreds of organisations, they set a global benchmark for high integrity in the voluntary carbon market to raise it to a consistent level of quality and ensure it accelerates progress towards the 1.5°C target.

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