Frequently Asked Questions
The place to answer all your questions
NZ Emissions Trading Scheme FAQs
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To find out whether your forest is able to be registered in the NZ ETS click below.
Your forest must be post-1989 forest and meet the below criteria:
Minimum of 1ha of contiguous forest.
Minimum average width of forest must be 30m.
Has (or to be expected to reach) crown cover of more than 30% in each hectare.
Species present must be capable of reaching at least 5m in height at this location at maturity.
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Once your forest land has been determined eligible, the next steps are:
Mapping the carbon accounting areas (CAA’s).
Opening a NZ Emissions Trading Register (NZETR) holding account. This is where you credits will be issued to.
Compiling evidence to submit alongside your application.
Submit application to Te Uru Rākau.
Ekos provide these services to help organisations and individuals register into the NZ ETS.
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To carry weight in an assessment, the more evidence you supply, the better.
Documents you may submit alongside your application to register may be:
Shapefile of forest area (mandatory)
Photos recently taken throughout site with associated GPS coordinates (mandatory)
Historical aerial imagery
Planting/seedling invoices
Plantation report
Drone imagery
Survival assessment
Grazing and fire statements - indicating the current vegetation is post-1989 forest
Previous landowner statements - indicating the current vegetation is post-1989 forest
Vegetation assessment report for natural regeneration sites
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Once registered as a participant in the NZETS you need to submit emissions returns routinely. Emissions returns are a form of reporting regarding the changes in the carbon being sequestered in post-1989 forest land over time. It records the number of NZU’s you earn or must surrender (pay) in certain time periods. Calculating emissions returns can be complex, Ekos offers a service that calculates your emissions returns for you and submits them on your behalf. See below the two types of emissions returns.
Mandatory ER
Mandatory emissions returns are required as a participant of the NZETS and must be submitted in line with MPI’s schedule below for post-1989 forest land.
2018-2022 (5 years) - submit 1 Jan to 30 June 2023
2023-2025 (3 years) - submit 1 Jan to 30 June 2026
2026-2030 (5 years) - submit 1 Jan to 30 June 2031
Provisional ER (optional)
Provisional emissions returns are optional and can be completed during a mandatory emissions return after the end of each calendar year.
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At Ekos we greatly encourage native restoration and native planting. We also understand that this involves a large up front cost to do so, and therefore why we also encourage the following planting models:
Exotic transitioning to native under continuous cover forestry managment
Exotic transitioning to exotic under continuous cover forestry management
Ekos offer services for a business case and planting plan across multiple planting scenarios and forest management models to figure out what the best choice is for your site.
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Ekos offer a credit monetisation service. Enquire today at ekos@ekos.co.nz. Alternatively you can sell your credits on the open market.
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If you are interested in purchasing credits, Ekos have multiple projects both domestic and international where you can purchase credits from. To view these projects click here. You can purchase credits here or get in touch with our team today at ekos@ekos.co.nz.
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Different forest types sequester carbon at different rates producing different carbon credit yield curves. For most small projects (i.e., less than 100 ha) the project is required to use the MPI Lookup Tables to determine the carbon sequestration rate.
If your forest is larger than 100 hetares in size then an on ground field inventory based on the Field Measurement Approach (FMA) is required every 5 years in order to capture the amount of carbon being sequestered.
Ekos offer FMA field inventory services.
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A vegetation assessment is only necessary to assess eligibility of the vegetation on the project land if the age and species cannot be distinguished via aerial and historical imagery or from planting records (or both). To maximise the carbon credit returns from your land it is very helpful to undertake a vegetation assessment. This will provide strong evidence of forest species, area extent, and vegetation age to include in your application to register your land in the NZETS. This is particularly relevant to naturally regenerating native forest.
A vegetation assessment is a field inventory to gather local vegetation type and age data sufficient to provide evidence to support an application to register land in the NZETS. The costs of vegetation assessments vary depending on the complexity of the property and size.
Carbon Management FAQs
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Anthropogenic climate change is caused by man-made greenhouse gas (GHG) emissions. These GHG’s accumulate in the earth’s atmosphere trapping solar radiation. This causes increases in atmospheric temperatures leading to significant global climatic change. One important and effective way of reducing the rate of climatic change is through the reduction of CO2 emitted by humans.
Whether it’s through various media platforms, or by experiencing the climatic changes first hand, we are witnessing the impacts of human induced climate change everyday. Whilst it is necessary to be aware of the challenges that humans, animals and the environment face, it is important to focus on the solutions available and the positive impact that we can have individually and collectively.
For a business to reduce CO2 emissions effectively, it is important to understand the carbon footprint of their business operations on an annual basis. Measuring an organisation’s carbon footprint baseline enables the creation of a focused reduction plan which Ekos can assist with. We provide carbon footprint measurement services and emissions reporting. This report breaks down the carbon emissions by activity and highlights emission hotspots within the business’s operations. Ekos then provides recommendations on emissions reduction interventions allowing businesses to set informed reduction goals and next steps in their Zero Carbon journey.
If you are interested in measuring the carbon footprint of your business’s operations, please download our business calculator through the following link https://ekos.org.nz/business-calculator . If necessary, we can then organise a time to talk on the phone regarding the ins and outs of this calculation and the data needed.
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Voluntary carbon offsetting involves taking responsibility for your carbon emissions (pollution). We do this by measuring the amount of carbon emissions you produce from things like flying and driving (burning fossil fuels), and then compensate for these emissions by causing an equal volume of carbon to be taken out of the air. This is done by establishing new forests and protecting old ones. This is because forests take carbon out of the air through photosynthesis – a process of capturing and storing the sun’s energy in the form of sugar and wood.
One carbon credit represents one tonne of carbon dioxide that has been taken out of the atmosphere by a forest. If your carbon emissions are equal to ten tonnes of carbon dioxide, we can offset this (compensating for our emissions) by purchasing ten carbon credits. These carbon credits are then cancelled in a carbon registry so that they cannot be used by anyone else.
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Ekos carbon credits are priced to cover the costs of producing them and retailing them. At the forefront of this is paying the forest owner, who has given up the right to either agricultural revenue (by reforesting), or timber revenue (by protecting their forests). Other costs include conservation management, such as pest and weed control, but also establishing the forest in the first place (for reforestation projects). In addition, we provide a retail platform consistent with international carbon standards that enables buyers and sellers to engage in a transaction. These annual costs are met by revenues from carbon credit sales.
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It costs approximately NZ$15 per tree to establish one of these forests (land preparation, purchase the seedling, plant the seedling, register the project, control pests and weeds, consents and planning). But purchases of carbon credits also go towards the ongoing costs, such as conservation management and revenue for land owners listed above.
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Carbon credits are made by planting new forests or protecting old forests.
The number of trees planted for each carbon credit will vary depending on the project, but our projects will typically involve planting 1,000 trees per hectare for a certified carbon project.
In the case of new forests, the amount of carbon a tree captures from the atmosphere changes as the tree grows, as seen in the diagrams to the right.
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No. Carbon sequestration (absorption) turns carbon dioxide gas into a solid and stores it in the landscape as wood. This lasts for the life of the forest - not the tree. A forest is a population of trees that can live as a forest system for many thousands of years - the forests in our national parks have existed for around 10,000 years (some lowland forests have been standing for much longer).
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The average wholesale carbon price in the international forest carbon market is around US$6/tCO2e (around NZ$9). This average takes into account very large scale industrial carbon projects that can produce carbon credits at very low prices. The average wholesale carbon price for Aotearoa-New Zealand carbon credits is currently around NZ$38.50. Ekos’ carbon credits come from our Aotearoa-New Zealand and Pacific Island projects. These are not large scale industrial carbon projects, but are fair trade-styled community-based projects designed to deliver sustainable land management, biodiversity and community outcomes. For these reasons, we need to charge a carbon price that can sustain these projects.
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Forests provide many benefits to people and nature. Some of these benefits include erosion control, flood protection, and stream protection. Because forests cool the land surface and reduce wind speeds they also help to increase soil moisture and water storage in soils. This helps to feed water to streams in dry seasons. By shading streams, forests also help to lower stream temperatures, and this is good for stream biodiversity, including fish. Forests also contain biodiversity, as well as storing carbon.
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Indigenous trees are those that are native not just to a country, but a particular area. Indigenous forests provide all the benefits listed above, but have the added value of providing even greater soil moisture, biodiversity, flood protection and stream protection than exotic monocultures. All of these benefits are enhanced when a forest is allowed to grow old, rather than being harvested. This is why Ekos focuses on establishing and protecting permanent indigenous forests that can thrive for 1000’s of years.
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This involves a customer purchasing carbon credits when there has either been no specific measurement or where we have not been able to verify this measurement. If you wish to purchase $X worth of carbon credits, we would provide you with a Carbon Friendly certificate. This way we would not review your carbon footprint measurement.
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No. Individuals and businesses already have those licenses because it is not illegal to use electricity, drive, fly, refrigerate, freight goods, or discard waste. Also, as animals and not plants, humans are net emitters of carbon dioxide by default. Our customers are individuals and businesses who have come to the conclusion that we all need to tackle climate change together and want to play their part. They have then taken the voluntary action to measure and reduce their carbon footprint. They have then taken responsibility for those emissions that they could not reduce to zero by offsetting those emissions. This offsetting is not compulsory, and yet funds reforestation and forest protection projects that sequester and store carbon in living carbon reservoirs (forests).
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No. Firstly, nature has been commodified long ago in the form of wood, and the clearing of forests for agricultural purposes. We are simply pricing the human labour and technology cost to care for and even restore nature. We are not exploiting nature by working to protect it any more than a doctor is exploiting a patient by combating disease or injury. We are just using a market instrument to raise money from the private sector to look after nature and the climate system. There is not enough grant money available to solve these problems and this is why it is useful to tap into private funds to do this work.
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If you want to offset your carbon footprint through planting or natural regeneration that has occurred on your land, the carbon sequestration of this area needs to be measured by the hectare, reported, verified by international carbon standards or the New Zealand Emissions Trading Scheme (ETS) and registered under the ETS registry or an alternative registry in the International Voluntary Carbon Market.
This measurement, reporting, verification and registration provides legal safeguards to look after the forest and gives the landowner a liability should deforestation occur. It also ensures that the carbon credits produced are not being ‘double counted’. Any reforested areas that are not verified and registered are included in the government’s 5 yearly reforestation aerial survey. The carbon sequestration of any unregistered reforestation is used by the government to meet their international carbon offsetting requirements. Double accounting is not permitted in voluntary offset standards.
If you think you have an area of passive natural regeneration or forested land that you think is worth registering please read the NZ ETS FAQ section above.
“Working with Ekos is a straightforward way to help maintain our integrity in climate change issues, with a company that we respect and enjoy interacting with.”