Biodiversity credits to fund land use change on the table following new research


A market for biodiversity credits is one financing option that could be instrumental in helping New Zealand farmers fund land-use change to meet environmental targets, according to a new study.

The Options for Rural Investment project was carried out by Perrin Ag and GHA Chartered Accountants and Management Consultants as part of the Government’s Our Land and Water National Science Challenge.

The year-long study evaluated 17 different funding models to support land-use change and saw researchers run a series of workshops with farmers, industry leaders and experts to understand the obstacles to land-use change and financing solutions that could overcome them. Funding models assessed by the research team ranged from traditional debt financing and private investment to creating a market for biodiversity credits.

“New Zealand farmers are being prompted to diversify their farm systems to make their businesses resilient to climate change and meet environmental expectations, but funding isn’t always easy to access because the change is less financially viable or the land or enterprise doesn’t fit the traditional debt model,” says the report’s co-author Perrin Ag Principal Consultant Carla Muller.

“Our research showed some types of land-use change were struggling to obtain the necessary funding to get them off the ground.

“Landowners need new and innovative financing solutions to help them overcome barriers to land diversification. We hope our findings further the conversation about different models that could be available and help some farmers find a solution that works for their situation.”

Potential Solutions

One solution that stood out as having the most potential was the creation of biodiversity credits.

“While this is used in some smaller or private transactions, such as by Sanctuary Mountain Maungatautari, there is significant potential for a larger public market to be developed,” says Carla. “The Government is looking closely at this through their consultation document released in July as are other countries, such as Australia. 

“New products such as biodiversity credits seem to have real potential for encouraging landowners to undertake land use and land management change that is environmentally friendly,” says Carla. “However, New Zealand does not yet have a public biodiversity credit scheme.”

She says the primary risks of creating a public market for biodiversity credits are around the design, longevity and the credibility of any market and the risk of perverse outcomes if it was not well designed.

“Examples like the carbon credit scheme through the New Zealand ETS has had success at incentivising land-use change, but the outcomes of this have been met with mixed reviews.

“It is incredibly complicated to create well-functioning public markets and there is significant work that needs to be done before this financing solution can realise its potential,” says Carla. “Consideration needs to be given to what we are actually selling, who can purchase credits generated and how these are measurable and auditable.”

The project also saw significant potential in the use of collectives, such as New Zealand’s successful catchment collectives, to combine projects to a scale where these are attractive to domestic and international philanthropic funders.

“There is significant philanthropic funding available, but they typically want big hero projects, and we need to organise our projects in this type of way,” says Carla.  “We then need to work out how to better connect our projects and farmers with those sources of potential funding.”

Other options assessed had potential but still faced big challenges.

“Sustainability-linked loans are great, but you still have to be approved for bank debt,” says Carla. “Equity funding typically requires farmers to cede control of their asset, which is uncomfortable in many instances and non-traditional lenders such as regional council loan schemes are no longer operating due to changing lending requirements.

“There is not one single novel financing solution that will be suitable for all situations, but we hope our research will encourage important conversations about the potential options that might be available.

Next Steps

This project identified key actions for each of the financing options, as well as generic recommendations for each one. The project team is in the process of sharing these findings with key stakeholders including banks, Central Government, and rural advisors.

For farmers who need to make changes and can’t access traditional funding, Carla encourages them to consider the funding options presented in the report. They can assess whether they would be suitable for their situation and potentially identify some options that may support the changes they need to make.

To find out more and to read the full report visit the Perrin Ag web site.



Lee Matheson

Tumuaki Whakahaere
Kaiwhakahaere Matua

B.Appl.Sc (Hons), FNZIPIM (Reg)

Nā tana whakapakeketanga i Pōneke i haere mai ai a Lee ki tana mahi nei. He Tāhū Paetahi Pūtaiao Otaota, ā, he mātanga hoki a Lee ki te tāhua mākete. Nā tana tūranga Pouwhakahaere e kore e kaha a Lee ki te puta ki ngā pāmu, heoi anō ki te puta atu ia ki waho, ka hākoakoa katoa ngā koko o tōna ngākau. He ahakoa kai te tari e mahi ana a Lee ināianei, kai konei tonu ia e kaha ana ki te tohutohu ki te arahi ki te tuku i ana matauranga rautaki a pāmu , ona whakaaro auaha, ana matauranga a Kāwanatanga, te mātai whakangao me te rangahau ohaoha ki ngā taringa pakiki.

A waho atu i a Perrin Ag, he tangata aroha ki te whakaako whutupōro, te mātakitaki i ana tokotoru e pakeke tupu ana me te ngaki māra tahi me tana hoa rangatira a Haidee.

"E aroha ana ahau ki te whakamana i ngā tāngata i o mātau wāhanga tuatahi me te ngahau o te kite i ngā kiritaki e tutuki ana i a rātau hiahiatanga. Mēnā ka taea e tātau te whakahauhau i nga kaiahuwhenua kia whakauru ki o rātau kiritaki, kia nui ake te whakauru hohe ki a rātau mekameka putanga me te tirotiro i a rātau umanga mā tētahi arotahi whānui ake, kātahi ka whakaaro ahau he nui ake te wā e heke mai ana a tātau mahi."

Abbey Dowd

Kaiwhakahaere

B.Ag.Sc (Hons), MNZIPIM

I uru a Abbey ki Perrin Ag i te wā o Hui 2023 hei wāhanga o te hōtaka tono mātauranga o te umanga, o Empower.

I tipu ake a Abbey e karapotitia ana e nga pāmu miraka kau i roto i tētahi iwi tata i Waikato ki te Tonga. I kite a ia i te tuatahi me pēhea te tautoko a nga kaiahuwhenua o te rohe i tōna iwi, koia ia i whakaawe ai i a ia ki te ako i te Whare Wānanga o Lincoln.

I nga wā katoa e mīharo ana te tipu ake i roto i tētahi iwi ā-taiwhenua o Abbey i nga wā katoa e hia nga kaiahuwhenua o te rohe e āwhina ana ki te iwi. I pīrangi a ia ki te āwhina ki te whakahoki ki te umanga me te tākaro i tētahi wāhanga ki te āwhina i to mātau wāhanga tuatahi kia whakaputa tonu i te kai kounga i runga i te āhua mārō.

I te tau 2022, i pau i a Abbey te raumati hai takawaenga i runga i tētahi o nga mahi miraka tauhokohoko tuatahi a Aotearoa. Ko tana kaupapa Honours e rangahau ana i te miraka deer i te taha o ētahi atu mahi miraka tūturu ake, me te arotake i ngā āheinga whakanao o te umanga miraka.

"I te tipu ake kaore ahau i noho i runga pāmu, engari i mōhio tonu ahau e hiahia ana ahau ki te mahi i te wāhanga pāmu. I pīrangi ahau ki tētahi tūranga i reira he toenga i waenganui i te mahi me te pāmu, ā, ka taea e au te tautoko i nga kaiahuwhenua kia whiwhi ai i te pai rawa atu i a rātau umanga."

Sam Gray

Kaiwhakahaere

I tipu ake a Sam i runga i te pāmu miraka kau i te Raki Tawhiti. I muri iho i tana whiwhinga mai i te Whare Wānanga o Otago i te tau 2005 me tētahi tohu Honours i roto i te hangarau hangarau rāpoi ngota, he maha nga tau e mahi ana a ia i roto i te rangahau rongoā i Aotearoa me Pākehā. I a ia e hoki ana ki Aotearoa i te tau 2012, e whā nga wā i pau ai i a ia te pāmu miraka kau i Te Whenua o Raki i mua i tana hokonga i tētahi paraka 56 ha i Taupо, i reira ia i kitea tuatahitia ai ki te pāmu i raro i te pū hauota. I uru a Sam ki Perrin Ag i te tau 2023, ā, ka mauria mai ōna pūkenga kaha e whakatūria ana e tētahi huarahi hāngai ki te whakaoti raruraru. I waho o te mahi pāmu me te tohutohu, tērā pea ka kitea e koe e rere ana a ia i te hī ika, te whaiwhai, te papa huka rānei.

"He tokomaha nga kaiahuwhenua e rongo ana i te uaua i mua i te huringa tere o te whenua mana. E tautohe ana ahau ki te āwhina i nga kaiahuwhenua kia mārama he aha te tikanga o ēnei ture taiao mo a rātau umanga, me te tuku rongoā māia e āhei ai rātau ki te mahi tonu i ā rātou mahi tino pai, i a rātau e noho tautuku tonu ana".

Danni Armstrong

Kaiwhakahaere pūtea

Pakeketia a Danni i te pāmu kau i Atiamuri ka noho hoki mō te rima tau hai pou hāpai kūtētē kau. He ahakoa tana mahi pāmu ehara i te mea ka noho motuhake ki tēnei mahi, ka aro atu hoki ki te rīhi motukā, ki te hauora me te mahi moana. He kaha tana aronga ki ngā take whakahaere me te tiaki moni, mātua ko te manaaki me te atawhai i ngā tini manuhiri ka whakatata mai, ka rua ko te tiaki i te taha ki te ao hangarau pēnā me ngā whārangi pāpāoho ki te ao hou ko te whakahaere tuku motukā, ā, tae rawa ki ngā kaupapa ako, te whakarite rōhi -a-mahi, H&S me te whakatika hapa. I whakapiri mai a Danni ki a Ag i te marama o Mei 2021, he ahakoa he tauhou he mātanga ki tōna ao pākihi koi i tāhuri mai ia ki tēnei whānau.

He wahine pānui pukapuka me ōna ngeru, he wahine takahi whenua haere ngāhere.

“I runga i ngā tini kaupapa whakawetewete, ara ake ai ahau ia rā ia rā – kāre i tua atu i te whakamutunga o aku mahi tatau kia ea ai– e whai tūranga mana ai taku tu ngātahi me tēnei tīma”.

Duncan Walker

Tumuaki
Kaiwhakahaere Matua

B.Appl.Sc, MNZIPIM (Reg)

I te haerenga mai i tētahi papamuri pāmu maroke me te miraka kau, i nga wā katoa e hiahia ana a Duncan ki te tipu i nga umanga o te wāhanga tuatahi. Ahakoa he pāmu tawhito, he ngahere, he pūtea penapena rānei i waho o te kēti pāmu, ko te mahinga pakihi tūturu ko te hiahia o Duncan. I muri i te mākatanga mai i te Whare Wānanga o Massey me tētahi Bachelor of Applied Science i Agribusiness, ko te wā tuatahi o Duncan ki te arotau i tētahi umanga pāmu mā te mahi i tētahi tahuringa miraka kau. Na te kaupapa Duncan i whakahaere te tahuringa, a, ka haere tonu te whakahaere i te pāmu miraka kau mo te toru tau anō.

Mai i te hononga atu ki Perrin Ag i te tau 2011 ka mahi a Duncan me te whānui o ngā kiritaki tae atu ki ērā 'i waho o te kēti pāmu'. Mā tōna papamuri kaha i roto i te tātari pūtea penapena, te rautaki pakihi me te whakahaere kaupapa, kei te nui haere te mahi a Duncan me ngā kiritaki ki te tātari me te whakauru i ngā pūtea whenua me ngā pūtea rākau ki roto i ā rātou umanga pāmu.

“Ko te hāpai o ōku hoa me te arataki i a rātou me ngā kōpikopikonga huhua o te ao hou taku oranga ngakau. Kia tū rangatira ai rātou, he aha i tua atu!”

Lee Matheson

Tumuaki Whakahaere
Kaiwhakahaere Matua

B.Appl.Sc (Hons), FNZIPIM (Reg)

Nā tana whakapakeketanga i Pōneke i haere mai ai a Lee ki tana mahi nei. He Tāhū Paetahi Pūtaiao Otaota, ā, he mātanga hoki a Lee ki te tāhua mākete. Nā tana tūranga Pouwhakahaere e kore e kaha a Lee ki te puta ki ngā pāmu, heoi anō ki te puta atu ia ki waho, ka hākoakoa katoa ngā koko o tōna ngākau. He ahakoa kai te tari e mahi ana a Lee ināianei, kai konei tonu ia e kaha ana ki te tohutohu ki te arahi ki te tuku i ana matauranga rautaki a pāmu , ona whakaaro auaha, ana matauranga a Kāwanatanga, te mātai whakangao me te rangahau ohaoha ki ngā taringa pakiki.

A waho atu i a Perrin Ag, he tangata aroha ki te whakaako whutupōro, te mātakitaki i ana tokotoru e pakeke tupu ana me te ngaki māra tahi me tana hoa rangatira a Haidee.

“Kai reira kē te ihi o taku mahi, ko te whakarangatira i ngā tangata mahi tahi pēnei i a tatou me te whakaputanga o ngā apataki ki te ao marama i runga i ngā whakatutukitanga a wō rātou tumanako-ā-ngākau. Mēnā tatou e tāea ki te whakaakiaki i ngā tangata pāmū ki te hono ki wō rātou kiritaki, me te ū a ringa raupā nei ki te ara whakaputa, me te titiro whānui ki tā rātou pākihi , ka harikoa katoa ahau i te mōhiotanga he ao ki tua mō tēnei tūmomo mahi”.