Working with Carbon Consultants
Carbon farming involves technical, legal, and administrative complexity. Many landowners choose to work with consultants — but when is it worth it, and what should you expect?
What Carbon Consultants Do
Registration Services
- Assess your land’s ETS eligibility
- Gather historical imagery evidence
- Prepare and submit registration applications
- Map Carbon Accounting Areas (CAAs)
- Liaise with MPI on your behalf
Ongoing Compliance
- Prepare and file emissions returns
- Calculate carbon stock changes
- Monitor and report forest changes
- Manage surrender obligations
- Handle correspondence with MPI/EPA
Trading and Strategy
- Advise on sell/hold decisions
- Connect you with unit buyers
- Execute trades on your behalf
- Develop long-term carbon strategies
- Model different scenarios
Specialist Services
- Field Measurement Approach (FMA) for 100+ hectares
- Native regeneration assessments
- Due diligence for land purchases
- Expert witness and dispute support
Fee Structures
Carbon consultants use various fee models. Understanding them helps you compare options.
Hourly Fees
How it works: Pay for time spent, typically $150-300/hour
Best for:
- One-off questions or advice
- Small, straightforward projects
- Landowners comfortable doing some work themselves
Watch out for:
- Scope creep
- Unpredictable total costs
- Incentive to take longer
Fixed Project Fees
How it works: Agreed price for defined scope (e.g., registration, one emissions return)
Typical ranges:
- ETS registration: $1,500-5,000+
- Emissions return: $500-2,000
- Full setup and first return: $3,000-8,000
Best for:
- Clear, defined tasks
- Budget certainty
- Comparing quotes
Watch out for:
- Exclusions and extras
- Quality variation
- Assumptions in scope
Percentage of Carbon Income
How it works: Consultant takes a percentage of your carbon revenue
Typical ranges: 5-20% of gross carbon income, often for a defined period (5-10 years)
Best for:
- Landowners without upfront capital
- Aligning consultant incentives with outcomes
- Long-term relationships
Watch out for:
- Total cost over time (can be substantial)
- Lock-in periods
- What happens if you want to change consultants?
Hybrid Models
Many consultants combine approaches:
- Fixed setup fee + percentage of ongoing income
- Hourly advice + fixed compliance fees
- Minimum fee + percentage above threshold
When You Need a Consultant
Strongly Recommended
- 100+ hectares — FMA requirements are technical
- Complex situations — Multiple forest types, native regeneration, pre-1990 questions
- Māori land — Additional governance and legal complexity
- Large transactions — Buying/selling ETS-registered land
- Compliance problems — Existing issues or MPI queries
Consider Carefully
- 5-100 hectares — Depends on complexity and your comfort level
- Native regeneration — Proving eligibility can be tricky
- First-time registration — Learning curve is steep
Might Not Need
- Very small, simple areas — DIY or aggregator may suit better
- Already knowledgeable — If you understand the system
- Aggregator services — They provide compliance support
Finding a Consultant
Sources
- NZ Institute of Forestry — Member directory
- Farm Forestry Association — Industry contacts
- Industry recommendations — Ask other landowners
- MPI doesn’t recommend — But can confirm who’s registered
Questions to Ask
- Experience: How many ETS registrations have you done?
- Specialisation: Native forests? Large-scale? Small landowners?
- Fee structure: How do you charge? What’s included?
- References: Can I speak to other clients?
- Ongoing relationship: What happens after registration?
- Exit: What if I want to change consultants?
Red Flags
- Guarantees about carbon prices
- Pressure to sign quickly
- Vague fee structures
- No references available
- Unfamiliar with recent rule changes (e.g., 2025 LUC restrictions)
DIY vs Consultant
DIY Registration
Advantages:
- No consultant fees
- Learn the system yourself
- Full control
Disadvantages:
- Steep learning curve
- Time-consuming
- Risk of errors (penalties possible)
- No expert guidance
Suited to:
- Technically confident landowners
- Simple, straightforward situations
- Small areas where consultant fees would eat returns
Using a Consultant
Advantages:
- Expertise and efficiency
- Reduced risk of errors
- Ongoing compliance support
- Strategic advice
Disadvantages:
- Cost
- Dependency on consultant
- Need to find the right one
Suited to:
- Larger areas
- Complex situations
- Time-poor landowners
- Those wanting peace of mind
Aggregator Services
What They Are
Aggregators pool multiple landowners together:
- Handle all registration and compliance
- May provide capital for establishment
- Manage unit sales collectively
- Share economies of scale
How They Work
Typical model:
- You contribute land (or land + forest)
- Aggregator handles everything
- Carbon income is shared (you get a percentage)
- Long-term agreement (often 10-25 years)
Advantages
- Minimal effort for landowner
- Professional management
- Access to larger buyers
- Reduced per-hectare costs
Disadvantages
- Lower income per hectare (they take a cut)
- Long-term commitment
- Less control
- Dependent on aggregator’s performance and integrity
Evaluating Aggregators
- Revenue split: What percentage do you receive?
- Fees: Are there upfront or hidden fees?
- Contract term: How long are you committed?
- Exit provisions: What happens if you want out?
- Track record: How long have they operated? References?
- Transparency: Can you see your carbon position?
Managing Consultant Relationships
Clear Scope
Define exactly what’s included:
- Which areas are covered
- What services are provided
- Timeline for delivery
- What’s excluded (important!)
Written Agreements
Get fee arrangements in writing:
- Payment timing
- What triggers fees
- Percentage calculation details
- Exit provisions
Regular Communication
- Request progress updates
- Review returns before submission
- Understand what’s being done in your name
- Ask questions
Keep Your Own Records
Even with a consultant:
- Maintain copies of all documents
- Understand your ETS position
- Track units earned and sold
- Know your obligations
Technology Services
Newer entrants use technology to reduce costs:
Satellite-Based Assessment
Companies like CarbonCrop use:
- AI to identify eligible forest
- Remote sensing for carbon estimation
- Automated mapping
- Streamlined registration
Advantages: Lower cost, faster, good for small areas
Limitations: May not suit complex situations
Online Platforms
Some services offer:
- Self-service registration support
- Guided emissions return preparation
- Trading platforms
- Dashboard for tracking
Cost-Benefit Thinking
Calculate Your Expected Returns
Before engaging a consultant:
- Estimate your carbon earning potential
- Consider different fee structures
- Calculate net returns under each
Example: 20 hectares of radiata pine
Expected carbon: ~1,000 NZUs/year at peak
At $65/NZU: $65,000/year gross
Consultant options:
- Fixed fee $5,000 setup + $1,500/year: $85,000 cost over 10 years
- 15% of revenue: $97,500 over 10 years (at flat prices)
- DIY: $0, but your time and risk
The right choice depends on your circumstances.
Key Takeaways
- Consultants add value for complex situations — Not always necessary for simple ones
- Understand fee structures — Compare total cost, not just percentages
- Get clear scope in writing — Know what’s included
- DIY is possible — But has a learning curve
- Aggregators suit some landowners — Trade income for simplicity
- Technology is reducing costs — New options emerging