TZ1 appointed global registry

Thursday, 03 July 2008

Stock exchange operator NZX's carbon market subsidiary TZ1 has been appointed as a global registry for the Voluntary Carbon Standard (VCS).

TZ1 had been focusing on the carbon registry business after identifying it as being under-served globally, and during the past six months had taken part in an intensive selection process, NZX said today.

NZX chief executive Mark Weldon said the voluntary carbon market was in a major growth phase.

"TZ1 is well placed to deliver registry services to this sector, which has been lacking true financial market infrastructure to date," he said.

TZ1 said VCS was recognised as the global leader of voluntary carbon standards. Projects that were approved under the VCS were issued with voluntary carbon units which must be held in an authorised VCS registry.

The TZ1 registry provided unique identification, transparency, authenticity and traceability of carbon credits from origin, and robust electronic transfer of ownership or retirement of credits when needed.

Voluntary carbon markets enabled businesses, governments, non-government organisations, and individuals to offset their emissions by purchasing carbon offsets, TZ1 said.

An offset was a unit earned by someone who had implemented a project according to international standards, such as a wind farm, that generated a reduction, removal, storage or avoidance in greenhouse gas emissions.

It could be bought by someone either for offsetting their emissions, in which case it was retired, or for investment or speculative purposes.

For this country, the voluntary market was increasingly important as more large corporate customers overseas required companies to adhere to environmental practices and emission reduction obligations.

Other buyers were purchasing offsets for corporate social responsibility, branding or competitive advantage reasons and taking action on greenhouse gas emissions.

NZPA