The New Zealand Government is expected to release a set of high-level principles for a voluntary biodiversity credit market during National Fieldays.
Associate Environment Minister Hon Andrew Hoggard told Parliament last month that this work would be tested via pilot projects, and he discussed the potential for farmers’ creating benefits for biodiversity and for their businesses.
“I see [this] as a particularly beneficial project that will help out our farmers quite considerably and other landowners who have native bush on their farms or land and, basically, give them a carrot, as opposed to the stick approach, of “Here is an incentive to further look after it.” parliament.nz
Designed as guidance rather than regulation, the principles aim to give not only farmers but iwi, investors and community groups the confidence to invest in nature-positive projects without repeating the integrity problems that have dogged some carbon-credit schemes.
[This article by RNZ for Our Changing World highlights recent ministerial comments on scientific rigour and new revenue streams for landowners. ppcc.org.nzrnz.co.nz].For the past year, EnviroStrat has been at the forefront of this work, having led a feasibility study for a nature-based prototype for the Whakamana te Waituna Trust in Southland.
This has explored how biodiversity credits could fund large-scale restoration of the nationally significant Waituna Lagoon Ramsar wetland.
The Trust seeks initially to add 400 ha of land managed for biodiversity, mahinga kai (sustainable procurement of food) and recreation around the catchment, as well as to cut sediment and nutrient losses and restore a healthy, stable lagoon hydrology.
This enables Ng?i Tahu to practise kaitiakitanga over taonga species. In the longer term the Trust looks to broaden this wider, within the lower catchment, creating biodiversity corridors amongst remnant vegetation on farms.
Here’s a summary of what we landed:
Potential standards. The pilot assessed 5–6 international and local standards, settling on either a Verra Nature Framework, or home-grown schemes such as the Ekos Biocredita standard, created as a solution to fit New Zealand conditions.
Integrity first. Credits would only be issued for actions that exceed existing legal requirements, with strict baselines, permanence and additionality checks alongside independent verification.
Real costs. Early modelling puts full-ecosystem restoration starting at NZ$5000 but can climb to NZ $20,000+ per hectare plus costs of land purchases. This underscores the need for a functioning market to crowd in private capital.
When we look at the reality of these costs, it’s understandable that the Minister is excited to share the potential of another tool in the toolbox for farmers.
“We understand there is quite a lot of demand internationally for these credits and schemes,” Minister Hoggard shared, “and so we will be looking to test this in very short order with a number of pilot projects to iron out the system and see if we can make something work here.”
While farmers were the focus of the Minister’s Annual Review debate, biodiversity credits are particularly applicable to iwi land trusts, who do not sell their land and seek intergenerational outcomes aligned with their role as kaitiakitanga.
Large landholders and potentially even QEII Trust are among others, as long as the rigours of standards and mechanisms are met.
While our pilot work with our clients, Whakamana Te Waituna Trust, proved potential to use international or New Zealand-led biodiversity credit standards to find a tailored, co-designed solution, there are considerations to ensure that, amongst the excitement, the goal is achieving an investable, auditable and culturally grounded mechanism.
There is still a lot of work to be done to get there, says EnviroStrat Sustainability Director Cerasela Stancu: “But it is exciting, and a proud moment to see the pilot by Whakamana Te Waituna Trust acknowledged by the New Zealand Government in its high-level principles.”
We are grateful to be entrusted by Whakamana Te Waituna Trust on a project that represents not only the restoration of a globally-significant (RAMSAR) wetland, but also a crucial step towards financing nature-based solutions that can help others who are constrained by the constant reliance on grants.
By exploring sustainable finance mechanisms, we aim to create a blueprint for scalable implementation, ensuring long-term viability and prosperity for the community and environment alike.
For Whakamana Te Waitina Trust, this project offers the chance to create a working prototype of nature-based credit mechanisms, helping thousands of restoration-minded people in New Zealand.
In summary, here’s why principles matter in addressing challenges;
| Fragmented methodologies | Common rules for measurement, additionality and verification |
| Investor trust | Mandatory transparency and third-party auditing |
| Cultural fit | Explicit recognition of Te Tiriti partnerships and tangata whenua values |
| Permanence | Long-term stewardship obligations (50 + years) and buffers |
| Scalability | Incentives for landscape-scale projects (1,000 ha +) |
*Based on the 2023 MfE discussion document that foreshadowed the Government’s announcement.
