New Zealand has run an emissions trading scheme since 2008, and unusually anyone can open an account and buy its units. But the government advises people and businesses who want to offset to use the voluntary market instead. This guide explains why, how each route works, and the tax and claims rules. For other countries, see our countries hub.
New Zealand’s compliance market (NZ ETS)
The government introduced the emissions trading scheme in 2008Source 12. It puts a price on around 40% of New Zealand’s domestic emissions, covering every sector of the economy except agricultureSource 6. There is one type of unit, the New Zealand Unit (NZU), and each represents one tonne of carbon dioxide or the equivalent in another greenhouse gasSource 6.
Businesses can buy NZUs through government auctions held four times a yearSource 9. Xpansiv runs the auctions on behalf of the Crown, and any account holder in the Emissions Trading Register can take partSource 7.
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| Setting | Value |
|---|---|
| Units available | 1,300,000 |
| Auction price floor | NZ$71.00 |
| Tier 1 cost containment reserve trigger | NZ$203.00 |
| Tier 2 cost containment reserve trigger | NZ$254.00 |
As of Sept 2026
These settings come from the auction operator’s update for the December 2026 auctionSource 8. The price floor is the price below which the government will not sell units at auctionSource 9.
New Zealand’s first NDC sets a target of a 50% reduction of net emissions below gross 2005 levels by 2030Source 9.
Buying NZUs as an individual
Anyone who wants to own or trade emissions units in New Zealand must have an account in the Emissions Trading Register, and an account holder can be one person, several people, or a businessSource 10. The Register is the national registry for these units, and the Environmental Protection Authority (EPA) runs itSource 10Source 6.
Cancelling NZUs is allowed, but not recommended
Holders can apply to the EPA to transfer NZUs to a cancellation account to support voluntary claimsSource 11. The Ministry for the Environment’s May 2026 guidance says removing a unit from the NZ ETS does not guarantee an offset of emissions, and recommends acting through voluntary markets insteadSource 11. If you do cancel NZUs, it says only certain forestry units should be considered, and your claim should be a contribution claimSource 11.
The same guidance points out that surrendering NZUs because the law requires it is not voluntary mitigationSource 11. Our guide to voluntary vs compliance markets explains the difference. Australia also lets individuals hold and cancel its government-issued units; see our Australia guide.
Buying voluntary credits in New Zealand
Most people and businesses who want to offset buy voluntary credits from online retailers, marketplaces and brokers. Compare them on registry serials and certificates in where to buy. The government does not currently offer letters of authorisation or corresponding adjustments for any voluntary carbon market activity in New ZealandSource 11.
Before you pay, ask which registry holds the credits and check that they are retired in your name.
Reduce first, then offset
Cut what you can before you buy, and use credits for the emissions that are left. Our guide for individuals shows how to size a purchase.
Claims and tax notes
Tax on emissions units
Inland Revenue says emissions units are generally treated as revenue account property: units purchased are generally deductible on acquisition, but added back at cost at year-end to the extent they are still on handSource 12. The supply of emissions units is almost always zero-rated for GSTSource 12. Get professional advice for your own case.
What you can say about offsets
The Commerce Commission’s guidelines say carbon-offset claims should clearly tell consumers what is being offset and how, and that the term “carbon neutral” should not be used if you cannot back it upSource 13. The guidelines note that companies can be fined up to NZ$600,000 and individuals up to NZ$200,000 per breachSource 13.
The Advertising Standards Code requires environmental claims to be truthful and able to be substantiated, and says advertisers must avoid greenwashingSource 14.
Whatever label you use, the evidence that matters is the same: which credits were retired or cancelled, how many, and where the registry record is.
How to check quality before you buy
Each Verra credit represents one tonne of CO₂e reduced or removedSource 1, and registries such as Gold Standard’s track every credit from issuance to retirementSource 2. That makes three checks possible before you pay:
- Is it in a public registry? Ask for the registry and serial numbers, and check the credits are retired in your name.
- Is the method credible? The ICVCM’s Core Carbon Principles set a quality threshold, and credits that meet it can carry the CCP labelSource 3.
- Is the seller clear? A good seller says what you are buying, what it charges and how and in whose name it retires credits.
Our guide to how to verify carbon credits shows the steps, and carbon credit scams lists the warning signs.
Article 6 deals
The Climate Change Commission notes that an NDC can also be met by paying for emissions reductions overseasSource 4, and has said that a significant amount of offshore mitigation is needed to meet New Zealand’s current NDCSource 5. We found no official record of a signed bilateral Article 6 agreement. For countries that have signed them, see Singapore and Switzerland.
How to buy, step by step
Step 1: Work out what to cover
Estimate your footprint and cut what you can first.
Step 2: Choose a route
Buy voluntary credits from a provider; NZUs are a compliance unit the government advises against cancelling for offsets.
Step 3: Pick a provider or project
Compare providers on registry serials, certificates and fees.
Step 4: Check the registry record
Confirm the credits are retired in your name on the registry.