The Government has released the Guidance for Voluntary Climate Change Mitigation which sets out expectations and best practice for participants in voluntary carbon markets in New Zealand.
This document provides guidance for participants in voluntary carbon markets. It replaces interim guidance published in February 2022.
Below is background and information to help participant understanding of the guidance and how it aligns with international best practice.
The Government has released the Guidance for Voluntary Climate Change Mitigation which sets out expectations and best practice for participants in voluntary carbon markets in New Zealand.
This document provides guidance for participants in voluntary carbon markets. It replaces interim guidance published in February 2022.
Below is background and information to help participant understanding of the guidance and how it aligns with international best practice.
Who the guidance will be useful for
The guidance is relevant to anyone involved in voluntary climate change mitigation in New Zealand, including:
- businesses and organisations making voluntary climate claims
- project developers and landowners undertaking voluntary mitigation activities
- market intermediaries, advisors and service providers supporting participation in the voluntary carbon market.
The guidance applies to voluntary actions only. It does not change legal obligations under the New Zealand Emissions Trading Scheme or other regulatory frameworks.
How voluntary carbon markets and carbon credits work
A voluntary carbon credit is a verified, tradeable unit representing the reduction or removal of one tonne of greenhouse gas emissions, measured in tonnes of carbon dioxide equivalent.
Voluntary carbon markets connect project developers – such as farmers, landowners, forestry operators and climate technology developers – with organisations that choose to fund mitigation activities as part of their broader climate strategies.
Climate projects can generate credits for protecting nature and taking climate action.
As with other markets, the price of credits is determined by what buyers and sellers are willing to pay. Prices can vary depending on factors such as project type, the standard used, when the credit was issued and whether they’re stacked or bundled with biodiversity or community benefits.
Read more about how voluntary nature and carbon markets work: Voluntary nature and carbon markets in New Zealand.
Why high integrity voluntary carbon markets matter
Voluntary climate change mitigation can sit alongside emissions reductions within organisations and across value chains. However, to realise these benefits, markets must be high integrity.
When markets are designed and implemented well, they can:
- mobilise private finance into emissions reductions and removals that would otherwise not occur
- support innovation and scaling up of new mitigation technologies and practices
- deliver better biodiversity, soil health and community outcomes.
Poor-quality credits, weak project and scheme governance, or unclear claims can undermine trust and confidence in markets and may mean the climate and biodiversity outcomes claimed are not realised.
This guidance therefore emphasises integrity, transparency and responsible use of carbon credits.
High-integrity voluntary carbon markets can play a complementary role in mobilising finance for mitigation activities, supporting innovation and contributing to global emissions reductions – where claims are transparent, credible and consistent with national or international climate goals.
Alignment with international best practice
New Zealand’s updated guidance supports participation in and investment into internationally-aligned, well functioning, robust and high-integrity voluntary carbon markets. It also helps grow domestic markets that are aligned with international best practice and the objectives of the Paris Agreement.
New Zealand's action to grow markets is aligned with The Coalition to Grow Carbon Markets’ Shared Principles for Growing High-Integrity Use of Carbon Credits. These set out a collective, government-backed framework for the use of carbon credits by business.
New Zealand joined The Coalition to Grow Carbon Markets in November 2025, to work with a group of like-minded, climate-forward governments focused on making carbon credit markets an indispensable part of national and international climate plans.
The guidance also reflects relevant international developments in the Paris Agreement Crediting Mechanism (PACM) under Article 6 of the Paris Agreement. PACM is intended to ensure that international crediting delivers real, additional, and verifiable emissions reductions, and avoids risks such as double counting or the undermining of countries’ nationally determined contributions.
In parallel, the guidance considers the Core Carbon Principles developed by the Integrity Council for the Voluntary Carbon Market, which provide a global benchmark for high quality carbon credits and credible participation in voluntary carbon markets.
Next steps
The Government expects to review and update the guidance again before the start of New Zealand’s second Nationally Determined Contribution period on 1 January 2031, to reflect developments in international practice, domestic policy settings and market maturity.