Carbon sink developer Carbon Conscious Ltd has struck an $NZ11 million ($A8.14 million) deal with a major Australasian energy company to plant trees in New Zealand.
The plantings will occur over multiple planting seasons, starting in 2011.
New Zealand has an emissions trading scheme that allows companies to offset their liability for greenhouse gas emissions with carbon offsets generated from forestry projects.
“We are excited about our expansion into New Zealand and pleased that we have secured our initial New Zealand client,” Carbon Conscious chief executive Peter Balsarini said in a statement on Thursday.
“Given the established nature of the carbon market in New Zealand, we believe the New Zealand business model has the potential to be as rewarding as the company’s Australian operations.”
Mr Balsarini said New Zealand offered excellent opportunities for carbon forest sink companies because the country had high and reliable rainfall, strong property laws, and a supportive government.
Shares in Carbon Conscious were 1.5 cents higher at 19 cents at 1347 AEDT on Thursday.
