Toitū has helped shape New Zealand’s approach to the voluntary carbon market for decades. This long-standing focus on integrity and transparency has now being more formally reflected by the New Zealand Government.
In May 2026, the Government announced a new approach to support trusted voluntary nature and carbon markets.
At face value, it’s about unlocking investment into climate and nature projects, but it also signals something bigger: a shift toward higher expectations of integrity, transparency, and accountability in how businesses participate in carbon markets.
Since the inception of our Climate Impact certification programme close to 20 years ago, our expert team have championed rigorous international best practice in carbon credit sourcing and advocated for offsetting only hard-to-abate emissions.
In this insight article, Stewart McKenzie, Principal Advisor - Carbon, unpacks what’s changed, why it matters, and the steps businesses should consider taking next.
What has changed?
The Government has introduced a two-pathway framework for voluntary nature and carbon credit markets that:
- Recognises internationally accredited schemes
- Endorses domestic schemes that meet integrity principles
Importantly, this endorsement acts as a quality signal rather than a guarantee, with buyers recommended to conduct further due diligence to ensure projects meet the level of quality they need.
Why it matters
- It raises the bar on what “good” looks like
Local origin alone is not enough — credits need to stand up to global integrity expectations. - It unlocks new investment opportunities
The framework aims to attract private capital into NZ-based climate and nature projects, particularly where public funding falls short. - Nature becomes part of the equation
The inclusion of biodiversity and restoration signals a broader shift toward valuing co-benefits alongside carbon. - Buyer responsibility increases
Even with a government-backed framework, businesses buying credits are still expected to assess and defend their choices.
Toitū’s position
This is the Government setting the conditions for a more mature voluntary carbon market — one that reflects the high-integrity approach Toitū has long championed in New Zealand.
We see this as part of a broader global shift: towards system-wide credibility and trust. Integrity is layered across both the supply side and demand side: Government endorsement, crediting standards, and provider due diligence (supply side) all play a role — but ultimately, businesses (demand side) remain accountable for the claims they make.
It also reflects a wider transition already underway: New Zealand’s carbon market is moving from a locally defined system to one that aligns with international best practice, to maintain credibility in global trade markets.
The inclusion of nature signals a positive evolution toward valuing biodiversity and restoration co-benefits alongside carbon. But it also reinforces the need for robust standards and credible verification to ensure these benefits are real, measurable, and not overstated.
What to do next
- Revisit the role of offsetting in your strategy
Ensure offsetting comes after verified measurement and reduction; it should not act as a substitute. You can see this article on credible offsetting for more information: - Strengthen your due diligence:
Move beyond “NZ-based” or “quality-checked” — ensure credits align with globally recognised integrity standards. You can see this article on high-integrity providers for more information. - Prepare to evidence your claims
Be ready to clearly explain why you chose specific credits and how they fit into a credible, reduction-led pathway. You can see this article on communicating claims for more information.
If you’re on the science-based Toitū Climate Impact Programme, which is accredited to internationally recognised ISO standards, you’re well supported for addressing the checkpoints listed above.
Closing thought
The Government’s announcement is a step toward Toitū’s longstanding goal of building a more trusted and effective voluntary nature and carbon market in Aotearoa. But for businesses, the real shift is this:
It’s not enough to simply participate in carbon markets — participation must be credible, transparent, and defensible across the value chain and supported by robust policy frameworks.
Those that move early will be better placed to manage risk, maintain trust, and unlock the opportunities created under this new phase of the market.
If you’re a Toitū client and would like to discuss the role of offsetting in your strategy — reach out to your dedicated Programme Lead or our Customer Support Team at support@toitu.co.nz, or call 0800 366 275 (option 2) at any time.
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Javier Aylwin
Primary Industries, Manufacturing & Transport
