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, says 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,” she says.

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,” she explains. “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.”

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. 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 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.