Voluntary Emissions Contribution Programme FAQs

Air travel creates greenhouse gas emissions as well as non-CO2 greenhouse gas emissions impacts. A voluntary emissions contribution does not eliminate, reduce or mitigate the climate impact of your flight. The contribution programme calculates the emissions generated from your share of your flight and purchases and retires carbon credits to match those emissions. The cost of the carbon credits represents half of the contribution. The other half is used to fund positive biodiversity outcomes in Aotearoa.  

A carbon credit is a unit of measurement that represents one tonne of carbon equivalent avoided or reduced.  Carbon credits are issued to verified projects that avoid or reduce greenhouse gas emissions in the atmosphere. For example, if a project has been verified to reduce emissions by 10 tonnes, then it may be eligible to receive 10 carbon credits.

Purchasing carbon credits provides finance to projects that reduce or avoid emissions. When a carbon credit is retired (or 'cancelled' in some registries) it is permanently removed from circulation and cannot be used again by another buyer.

Carbon credits can be earnt by certified projects that prevent emissions from entering the atmosphere or remove or absorb greenhouse gas emissions once they exist in the atmosphere.

Approved registries issue the carbon credits, once accredited third parties verify the activities and once the activity has actually occurred. An organisation can then buy those carbon credits. Each carbon credit has a unique serial number to ensure it can't be counted twice.

The Ministry for the Environment notes in its Interim guidance for voluntary climate change mitigation the internationally agreed principles that carbon credits must meet to be considered credible for voluntary contributions:

• Transparent
• Real, measurable and verified
• Additional
• Not double-counted
• Address leakage
• Permanent

Air New Zealand has partnered with CHOOOSE to source carbon credits that adhere to these criteria.

Carbon credits are transacted in metric tonnes of carbon dioxide equivalent (CO2-e).  Once a carbon credit is purchased it then needs to be retired permanently to remove it from circulation.

Carbon dioxide is the greenhouse gas generated mainly by fossil fuel use, however there are other greenhouse gases that contribute to global warming.

Usually, all greenhouse gases are expressed as carbon dioxide equivalents (CO2-e) which is a metric measure used to compare the emissions from various greenhouse gases on the basis of their 'global-warming potential' by converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential. This is why carbon credits are typically transacted in 'carbon', or CO2-e.

At Air New Zealand, carbon credits are purchased and retired for emissions associated with staff travelling for work.

Emissions from travel on Air New Zealand services are calculated under the International Air Transport Association (IATA) Recommended Practice RP 1726 methodology. This considers:

• The distance travelled on the journey (greater circle distance)
• The class of travel flown (Economy, Premium Economy or Business Premier)
• A bespoke Air New Zealand specific emissions factor
• A factor for radiative forcing

The emissions for each flight are calculated on a per-seat basis for passengers. Seats in Premium Economy and Business Premier™ take up more space in the aircraft and accordingly represent a greater share of the emissions generated on the flight.

An emissions factor is a number that represents the quantity of emissions associated with the production of one unit of a particular activity. Emissions factors are used to convert activity data into the quantity of emissions associated with the activity.

Air New Zealand has used the IATA Recommended Practice RP 1726 methodology to calculate bespoke emissions factors. These Air New Zealand specific factors typically take into account the particular aircraft type, the route being flown and historical fuel data collected from the route over time.

These Air New Zealand-specific emissions factors are used in the CHOOOSE emissions calculator incorporated in the booking process to more accurately estimate the emissions generated by a particular journey on an Air New Zealand service, instead of relying on industry averages.

For contributions purchased after 19 July 2023, emissions estimates provided by CHOOOSE are certified for use under ISO14064-1:2018. The audit includes CHOOOSE's usage of Air New Zealand-specific data for accuracy improvements and includes assessment criteria from the following sources:

• ISO 14064-1:2018 Greenhouse gases — Part 1: Specification with guidance at the organisation level for quantification and reporting of greenhouse gas emissions and removals
• World Business Council for Sustainable Development's (WBCSD)/World Resources Institute's (WRI) "The Greenhouse Gas Protocol, A corporate accounting and reporting standard - Revised edition" (2004)
• IATA Recommended Practice Per-Passenger 1726 CO2 Calculation Methodology

For air travel emission factors, a multiplier may be applied to account for the radiative forcing of emissions arising from air travel at altitude. Radiative forcing helps organisations account for the wider climate effects of aviation, including water vapour, contrails and indirect greenhouse gas emissions – these are often referred to as non-CO2 impacts. Air New Zealand includes radiative forcing in its calculation of passengers' emissions as this better accounts for the actual impact of their flight.

While radiative forcing and non-CO2 impacts remain the source of ongoing research, Air New Zealand acknowledges the role of aviation in creating non-CO2 impacts.

Air New Zealand has followed the approach recommended by the New Zealand Ministry for the Environment in its Measuring Emissions Guidance (August 2022), applying a factor of 1.9 to the carbon dioxide component of the CHOOOSE emissions calculation.

No. This contribution is in addition to your carbon credits. The funds go directly to projects that drive positive biodiversity outcomes in Aotearoa.

The Ministry for the Environment in its Environment Aotearoa 2022 report once more outlined the declining state of Aotearoa's precious natural environments, rivers and ecosystems. Aotearoa's biodiversity is in crisis. Regenerating, preserving and protecting our natural environments, provide a range of benefits including:

• Absorbing carbon
• Improving soil health
• Helping to restore our ecosystem's resilience and flora and fauna
• Supporting health and wellbeing for people

The Contribution Programme directs 50 percent of collected funds to purchasing carbon credits linked to international projects (including a 15 percent management fee for CHOOOSE for sourcing, administering and retiring the carbon credits) and the remaining 50 percent of funds go to goes to Trees That Count  to supply additional native trees to planting projects around Aotearoa, amplifying the efforts of planting projects and supporting the restoration, regeneration, and protection of Aotearoa's native biodiversity.

Air New Zealand does not offer a carbon credit only option. Protecting Aotearoa's natural environments is important to Air New Zealand and the biodiversity contribution provides a link to Aotearoa based projects.

No. Unfortunately contributions are not eligible for tax credits. Trees That Count is a programme of registered charity The Project Crimson Trust. You can donate directly to them if you wish to claim a tax credit at www.treesthatcount.co.nz.

We've partnered with CHOOOSE to deliver carbon credits from vetted and certified international projects.

We choose projects that are validated and verified by third parties, and that are vetted by our partner CHOOOSE. The projects are all certified by internationally recognised carbon standards, such as the Verified Carbon Standard, and have been assessed by other reputable carbon rating agencies, like BeZero. Projects must meet the following criteria:

• a real project
• measurable and permanent emission reductions
• additional to a business-as-usual scenario
• independently verified by an approved third party

Your Voluntary Emissions Contribution is calculated on a portfolio price basis, including the biodiversity contribution. This is currently $30.68 per tonne of CO2-e.

50 percent of the price goes to our partner CHOOOSE, who use that (less an administration fee) to purchase carbon credits to match the emissions generated by your share of the flight. The remaining 50 percent goes to Aotearoa based biodiversity projects.

CHOOOSE are providing the platform that enables Air New Zealand customers to calculate their flight emissions and contribute to climate initiatives through the airline's booking experience. CHOOOSE helps its partners to build, manage and report on customer climate programmes that embed climate initiatives (such as verified carbon credits) wherever they interact with their customers.

Headquartered in Norway, CHOOOSE has enterprise partners and employees around the world. Learn more at www.chooose.today.

No, Air New Zealand does not share your name, contact details or any other information that directly identifies you with CHOOOSE when you elect to use the Contribution Programme. CHOOOSE calculates emissions based on information such as origin and destination, aircraft type and cabin class.

Air New Zealand doesn't make any margin on the carbon credits purchased under the Contribution Programme nor does Air New Zealand make any money on the operation of the contribution programme.

CHOOOSE charges a 15 percent fee to cover administrative costs associated with sourcing, supplying and retiring carbon credits.  For more information, see the CHOOOSE Terms and Conditions.

The Contribution Programme carbon credits are held in carbon credit registry accounts. When carbon credits are bought, those credits are removed from circulation. This means they are 'retired' in voluntary market registries where the global projects are registered. Retirements take place twice a year.

Retiring a carbon credit permanently removes it from circulation in all registries.

The Contribution Programme uses carbon credits from projects certified under Verra's Verified Carbon Standard (VCS) and listed on the Verra Registry.

The Verified Carbon Standard (VCS) Programme is the world's most widely used voluntary greenhouse gas (GHG) crediting programme. Carbon credits from VCS certified projects are listed on the Verra Registry, which serves as the central repository for all information and documentation relating to Verra projects and carbon credits.

Carbon credits are retired within 12 months of purchase. The retirement happens in batches twice per year.

No. Under the New Zealand Emissions Trading Scheme Air New Zealand must:

• Report greenhouse gas emissions from domestic flight fuel use; and
• Give the government a matching number of emission reduction units known as New Zealand Units (NZUs)

Air New Zealand meets all its NZ ETS and other carbon compliance obligations at its own cost.