Aotearoa New Zealand’s leading carbon certification and advisory services provider Toitū Envirocare has announced it
will transition out of accepting New Zealand carbon credits in its carbon certification programmes. Carbon credits that
have been issued under the PFSI (Permanent Forest Sinks Initiative) and PP89 (Permanent Post 1989 Forest category of the
Emissions Trading Scheme) will no longer be accepted for offsetting in the Toitū carbon certification programmes. This
strategic shift aligns with the evolving standards in the global Voluntary Carbon Market (VCM), as they no longer meet
the latest international best practice, especially amid heightened demand for integrity and transparency in carbon
credit projects. The transition will commence in early 2024, once the new best practice becomes operational.
Toitū Envirocare Chief Science and Advisory Officer Dr Belinda Mathers said, “We appreciate the importance of supporting
New Zealand based projects, and historically these projects have been accepted as suitable quality, but market
expectations for carbon credits have changed. While there are excellent indigenous forestry projects in Aotearoa, the NZ
schemes that issue carbon credits are not being assessed by the Integrity Council for the Voluntary Carbon Market (IC-VCM), against the quality requirements, so cannot show that they meet expectations. We conducted a thorough review
of options for continuing to use the New Zealand credits, but none are yet suitable for meeting best practice”.
Both the carbon credit projects (PFSI and PP89) were set up for permanent forest carbon credit projects for the NZ
Emissions Trading Scheme, the Government’s regulatory compliance scheme aimed at reducing national greenhouse gas
emissions. Its standards are designed to meet specific national policy goals and legal requirements. In contrast, the
VCM, where Toitū operates, adheres to different, more stringent, standards. These are guided by international best
practice and emphasise aspects such as transparency, global applicability, and additional environmental or social
benefits. Toitū Envirocare’s decision is to ensure it can remain aligned with the latest international best practices,
market expectations, and provide the highest levels of international recognition and transparency to NZ businesses.
Toitū Envirocare follows international best practice as set by the ICVCM, the independent global governance body for the
VCM. It is their latest guidance established as a global standard for carbon credit quality that defines New Zealand
carbon credits as no longer meet the quality requirements.
The New Zealand carbon credit programmes (PFSI and PP89) are government owned and were primarily developed for selling
into the compliance-based NZ Emissions Trading Scheme (ETS). At this stage there is no intention for the PFSI and PP89
to get assessed. As a result, projects under these schemes cannot be approved as ICVCM compliant, even if they
individually meet the criteria.
Toitū members will still have options to support New Zealand sites: “For example, members can opt for the Toitū Climate
Positive certification option and purchase New Zealand carbon credits as part of the ‘impact contribution’ component of
the certification requirements,” says Dr Mathers. “For the affected New Zealand suppliers, they still have the option to
sell their credits into the NZ ETS, which is the primary purpose of the schemes”.
Carbon credits used for offsetting in the Toitū programme will be from international projects issued by standards that
have been assessed as meeting the best practice set out by ICVCM. However, Toitū remains hopeful of accepting New
Zealand based credits again in the future, once carbon crediting schemes that are meeting best practice become
operational in New Zealand.About Toitū Envirocare
Toitū Envirocare leads positive change through a system of science-based carbon and environmental certification
programmes. Toitū Envirocare’s internationally recognised data-led and science-based carbon and environmental programmes
set the benchmark for Aotearoa NZ’s voluntary carbon and environmental certification programmes for more than 900
businesses, from well-known corporates to privately-owned companies, certified under their carbon reduction programmes.
Based on science and backed by evidence, our Toitū carbonreduce, Toitū net carbonzero, Toitū climate positive and Toitū
Enviromark certification programmes give organisations the tools to reduce their carbon emissions and environmental
impact. We also help with setting science-based targets, scope and boundary assessments, value chain screening, and
carbon inventory verifications. Initially developed for New Zealand business needs, our programmes now serve businesses
worldwide. Wholly owned by Manaaki Whenua – Landcare Research, a Crown Research Institute, our origins are in science,
but our future is in the sustainability of our economy, our people, and our land.