Under fire offset company prematurely claims a global watchdog's green light
A Kiwi carbon offset company claims in its marketing that it meets the standards of a new watchdog. But the monitoring body whose name is being used hasnt even started testing companies, so no one can claim to meet its standards. In June, Stuff revealed that CarbonCrop was using a contested method for issuing carbon credits, by selling offsets for vegetation that has already been growing for years on peoples land. The company issues carbon credits for growing native trees, which are sold to consumers and businesses wanting to take meaningful climate action . READ MORE: * Budget's most expensive green policies may save more cash than carbon * Why the heat is on carbon offsets claiming to protect forest * Southland carbon offset project may have overestimated the effect of logging After Stuff investigated CarbonCrop last year, the company altered its marketing. It now claims its credits are aligned with guidance produced by a new watchdog, the Integrity Council for the Voluntary Carbon Market. CarbonCrop self-assessed that its products met a drafted standard from the watchdog. But the Integrity Council says thats not how the system works it will conduct the evaluations. Customers buying the carbon credits are told emissions will be remove[d] from the atmosphere on their behalf. The integrity of the offset industry is currently under scrutiny internationally. Verifiers such as Verra were intended to independently vet the projects and exactly how much carbon dioxide they claimed to absorb or prevent. But even offset projects that have received certification by these bodies are being challenged. Research and media investigations concluded that some projects are exaggerating their positive impact on the environment, which would increase the number of offsets awarded. These concerns about the quality of carbon offsets led to the formation of the Integrity Council. Experts including Carly Green, who works for Kiwi climate consultancy Environmental Accounting Services welcomed the new watchdog. But no one has the councils seal of approval yet because the Integrity Council has not yet started assessing companies, she said. While not commenting on CarbonCrop specifically, Green said it was not possible for any offset company to claim compliance with the council. No one should be making any statements or claims... until their process has been finalised. The Integrity Council was alerted to CarbonCrops marketing claim when contacted by Stuff . A council spokesperson said: We will be in contact with CarbonCrop to make clear that only [we] can approve carbon-crediting programs and categories of carbon credits as meeting the Core Carbon Principles. CarbonCrop co-founder Nick Butcher stood by the claims. We think these are clear. Prior to linking itself with the Integrity Council, CarbonCrop said its carbon credits partially aligned with the Ministry for the Environments guidelines on offsets. The ministry echoes the long-established industry principle that carbon offsets should only be issued for the difference they are making. Offsets, the ministry said, must be additional to business-as-usual activity. Because regenerating bush normally grows (sucking in carbon) if left to its own devices, forestry offset projects typically have to demonstrate that they are taking new or extra action. For example, the landowner might stop logging their land, stop livestock from damaging vegetation and undertake pest control to boost tree growth. If the protected forest is doing better than business-as-usual, the project is eligible for offsets though only for that difference. If that rule is not followed, the process is meaningless, offset verifier Gold Standard warned . At worst, junk offsets can cause emissions to increase because individuals and companies can treat them as a green light to fly or drive. Although CarbonCrop doesnt require a landowner to introduce anything new, co-founder Butcher said it financially encourages extra action. Landowners receive carbon credits for all growth estimated using artificial intelligence from the point they sign up. CarbonCrop rewards trees that would have regenerated naturally as well as rewarding any new measures the landowner may choose to introduce, such as ending harvesting. Therefore, Butcher argued, we effectively penalise those who do not implement pest control or stock exclusion. Butcher said landowners have used revenue from selling CarbonCrop credits to plant trees, construct fences and undertake weed and pest control. But by failing to estimate and exclude the tree growth that would have occurred under business-as-usual, CarbonCrops method falls short of industry principles and government standards. Butcher said the company has made extensive public statements about how its methods align against industry and other standards. We remain committed to transparency and engagement with government and other initiatives in this area. Our weekly email newsletter, by the Forever Project's Olivia Wannan, rounds up the latest climate events. Sign up here .