New Zealand Green - How it works
There are three parties involved in the system. Firstly there is the Landowner each of which has their own public space within the website. Then there is the Sponsor who can purchase services from the landowner according to their needs. Lastly there is the Site Administrator who overlooks and records the process. The relationship between the Landowner, Site administrator and sponsor is the subject of a formal agreement (Land Management Agreement) which sets out details of what the landowner must do in return for sponsorship.
This system is about landowners offering to restore and/or preserve the indigenous eco-system on all or part of their land in return for sponsor input based on the current market value of the carbon accumulated and/or sequestered.
- Each participating Landowner offers will have offered up for sponsorship, at least one Restoration Area of land, divided up into 25 sq metre Land Units (LU). The total area is usually less than the total area of land owned.
- Sometimes, usually where there are different ages or types of forest, there may be more than one restoration area involved in which case the LU will be offered in different grades.
- Each grade of LU will have a CO2e (carbon dioxide equivalent) rating associated with it both for Storage To Date and Sequestration Rate.
- Interested parties can choose to sponsor any number of LU from any particular landowner for any number of years that suits them. The landowner agrees to restore the land to the extent sponsored and preserve it in perpetuity.
- Rights to the CO2e associated with any transaction will accrue to the Sponsor to be stored, used for offsetting or traded on as the sponsor sees fit.
- Sponsors and Landowners are encouraged to form ongoing relationships so that Sponsors can maximise the marketing benefits that may arise out of their sponsorship.
The design objectives of NZgreen have been to provide a system which will efficiently encourage as much participation and restoration as possible while allowing for those who require the highest possible standards of integrity. The key features are:
- Transparency - This allows the sponsor to check for themselves the validity of their investment rather than having to rely on some mysterious register supervised by a possibly corruptable single entity. Each landowner has their own public space on this site where they are required to display up to date information such as:
- Landowner identification details including contact details and legal description.
- A map and GPS co-ordinates of the land offered. This allows the sponsor to check the progress of the eco-system restoration from anywhere in the world using global view systems such as Google Earth.
- Location and class of restoration areas on the land, subdivided into LU, showing total offered and total already sponsored. This is supported by a list of transactions to date and the user names of the sponsors involved.
- For each class of restoration area; total expected carbon sequestration rate, and actual storage CO2e to date. These claims made must be assessed by an independent party who will regularly check whether the estimates have been accurate in practice.
- Identity of the assessor and any standards used so that the sponsor can check that the level of integrity is suitable to their needs.
- The landowner is responsible, through the Management agreement, to both the sponsor and the site administrator for providing the eco-system restoration and preservation as recorded in their location details and has agreed to make the acceptance of these responsibilities a condition of sale to any new owner.
- NZ law has many provisions to inhibit the removal of native forest once it has become established.
- 10% of the total restoration areas offered up by each Landowner is held as NZ Green Reserve. The LU in these areas are not available for sponsorship but instead are accumulated to establish a pool of LU equivalent to 10% of the total area registered with NZgreen. This pool may be used, temporarily or permanently at the discretion of the site administrator, to offset any shortfalls of LU which may have arisen out of slight inaccuracy in measurement or adverse events.
How to be a Participating Sponsor
- Have a good look around this site to make sure you understand how it all works and are comfortable with the principles involved. In particular look at the Land Management Agreement which sets out the responsibilities of the landowner.
- Select a restoration area that suits you. If you are interested in offsetting all or a part of your carbon footprint use a calculator such as www.carbonfootprint.com to assess your CO2e requirements. About now might be a good time to contact us to discuss your plans and get our recommendations.
- If you proceed you must contact us to register your deal. We need to know total LU sponsored and for how long. This is most important as your transaction will have little validity until it is registered.
- Please do not pass over any funds until you see the transaction registered correctly in the particular landowners restoration details.
How to be a participating Landowner
- Have a good look around this site to make sure you understand how it all works and are comfortable with the principles involved. In particular look at the Land Management Agreement which sets out your responsibilities.
- Have a good look at another landowners restoration area details in order to see what sort of information is needed. In particular look at who you are going to get to do your assessments. We may be able to help with suggestions.
- Think about what legal mechanism would suit you to ensure that your responsibilities will be passed on to a new owner. You may already have something like a QE2 trust covenant in place. If not a special caveat may have to be registered.
- Contact us with all your information and ask us for a quote to list you on the site.
- Make sure that we know the transaction details every time you accept any sponsorship. We do not want to know all your business but we do need to know how much has been committed. The transaction register is a critical part of the integrity of the system. There will be no acceptable excuses for failing to register a transaction.