Northmore Gordon Helps Companies Achieve Net-Zero Status for Operations In New Zealand

Published: August 29, 2022.

Northmore Gordon

We became a registered Participant in the New Zealand Energy Certificate System (NZECS), which enables our team of energy experts to help companies navigate the NZECS and reach net-zero status for their business operations in New Zealand. This registration allows Northmore Gordon to source, purchase, trade, and redeem NZ-ECs on behalf of clients, serving as a market intermediary for companies with New Zealand operations seeking to make verifiable renewable electricity claims.

To add to our inventory of services, Northmore Gordon has become a registered Participant in the New Zealand Energy Certificate System (NZECS). This development enables our team of energy experts to help companies navigate the NZECS and reach net-zero status for their business operations in New Zealand.

Companies worldwide are implementing methods and pathways to support the net-zero movement. Alongside efforts to lower Scope 1 emissions through energy efficiency improvements, companies have the option of participating in voluntary certificate markets to claim that their energy is sourced from zero-carbon energy sources.

The New Zealand Energy Certificate System (NZECS) is one such market. Initiated in 2019 by Certified Energy, the NZECS provides a voluntary market for the buying and selling of energy attribute certificates for New Zealand-based activity. The NZECS is aligned with international greenhouse gas (GHG) reporting schemas, such as the Greenhouse Gas Protocol. Therefore, it represents a rigorous standard for participating energy users to claim the use of renewable energy and lower their Scope 2 emissions.

As a verified NZECS Participant, Northmore Gordon can source, procure, and redeem energy certificates for companies with New Zealand operations. This enables us to better support companies on their journey to net zero and to help them develop strategies that align with their corporate values and objectives.

How the NZECS Works

The NZECS marketplace is made up of verified Registrants and Participants. Registrants generate electricity from renewable energy (or approved low-carbon technology) systems and issue energy certificates to the NZECS registry. Participants register energy users that can purchase, trade, and redeem energy certificates.

As a tradable commodity, each NZECS energy certificate (NZ-EC) includes the same core elements. The price is described in cost per MWh (in NZD), and the NZ-EC vintage shows the production year for the energy it represents. An NZ-EC also details the volume of MWh as well as the fuel source, technology details, and location of the production device.

The NZECS is designed to promote responsible accounting of NZ-ECs. The registry has tracking measures in place to avoid double counting of certificates. In addition, NZ-ECs must be redeemed by a Participant in the same reporting year as the energy was generated. Any issued certificates that go unused by the end of the reporting cycle are automatically cancelled.

How NZECS Participation Benefits Businesses

For a facility that is connected to the energy grid, it is impossible to assert the source for its electricity (unless the facility owns and operates its own onsite renewable energy system, such as a rooftop PV solar system).

For comparison, imagine a large bathtub that has many small drains and numerous taps. After water comes out of a tap, it combines with the water pouring out of the other taps to form one mixture. By the time the water exits an individual drain, it is impossible to determine from which tap that water originally came.

The same goes for the electricity grid. Once the generated electricity enters the grid - whether it comes from solar, coal, or natural gas - it becomes indistinguishable from the other electricity in the mix. When electricity moves into a home, business, or industrial facility, the source of that electricity cannot be determined.

Therefore, for a facility to make any claim over the source for its grid-tied energy, the facility must purchase an NZ-EC. In that way, the NZECS offers energy users the option to showcase support for clean energy.

In addition, purchasing NZ-ECs helps companies reach their corporate sustainability goals and targets. These achievements can be highlighted in stakeholder engagement reports as well as in carbon disclosure assessments for various investor-driven reporting frameworks. Demonstrating follow-through on net-zero commitments and initiatives can help a company stand out from its peers. This competitive edge opens opportunities to strengthen economic performance and advance corporate objectives.

Accelerating the transition away from carbon-based fuels is quickly becoming both a societal and business imperative. The severity and increased frequency of extreme weather events showcase the financial and societal toll from increasing atmospheric concentrations of greenhouse gases (GHGs) like CO2 and methane.

The NZECS enables marketplace participants to support renewable energy generation and help spur additional development.

Northmore Gordon Serves As An NZECS Participant

As a registered NZECS Participant, Northmore Gordon can serve as a market intermediary for companies with New Zealand operations. This allows our team of energy experts to source, purchase, trade, and redeem NZ-ECs for our clients so that they can smoothly reach their net-zero targets.

Issued NZECS certificates represent production devices that vary by location, fuel source, and technology type. Registrants also differ in their approach to managing profits earned from NZ-EC sales. This selection diversity opens an opportunity for energy users to establish a thoughtful and intentional certificate procurement strategy.

Northmore Gordon strives to understand a company's corporate identity to develop an energy certificate procurement strategy that aligns with the business' values and objectives. This level of support can provide companies with the confidence to commit to more ambitious clean energy initiatives, like RE100.

The business landscape is moving toward clean energy. Northmore Gordon assists companies with deep decarbonisation efforts, and our services now include helping companies take advantage of the emerging voluntary energy certificate market in New Zealand.

Scheme and certificate context

Before using a certificate or grant figure, confirm the current scheme method, eligible activity, effective date, evidence requirements, price date and registration or application process.

What did Northmore Gordon become in order to help companies achieve net-zero status in New Zealand?

We became a registered Participant in the New Zealand Energy Certificate System (NZECS), which enables our team of energy experts to help companies navigate the NZECS and reach net-zero status for their business operations in New Zealand. This registration allows Northmore Gordon to source, purchase, trade, and redeem NZ-ECs on behalf of clients, serving as a market intermediary for companies with New Zealand operations seeking to make verifiable renewable electricity claims.

What is the NZECS and who initiated it?

The NZECS (New Zealand Energy Certificate System) is a voluntary market for buying and selling energy attribute certificates for New Zealand-based activity. It was initiated in 2019 by Certified Energy and is aligned with international greenhouse gas reporting schemas such as the Greenhouse Gas Protocol. This alignment ensures that certificates purchased through the NZECS can support corporate sustainability reporting and net-zero commitments using internationally recognised accounting methodologies.

What is an NZ-EC and what does it represent?

An NZ-EC (New Zealand Energy Certificate) is a tradable commodity equivalent to 1 MWh of renewable electricity. Each certificate includes a price described in cost per MWh (in NZD), a vintage showing the production year, the volume of MWh, the fuel source, technology details, and the location of the production device. This detailed specification ensures transparency and allows businesses to select certificates that align with their specific sustainability objectives and procurement preferences.

How does the NZECS prevent misuse or double counting of certificates?

The NZECS registry has tracking measures in place to avoid double counting of certificates. NZ-ECs must be redeemed by a Participant in the same reporting year as the energy was generated, and any issued certificates that go unused by the end of the reporting cycle are automatically cancelled. These mechanisms ensure that each certificate represents a genuine renewable electricity attribute and cannot be claimed multiple times or carried indefinitely without retirement.

Why can't a business simply claim its grid electricity comes from a renewable source without a certificate?

Once electricity enters the grid—whether from solar, coal, or natural gas—it becomes indistinguishable from other electricity in the mix. A facility cannot determine the actual source of the specific electrons it consumes. Therefore, a business must purchase and retire an NZ-EC to make any verifiable claim over the renewable nature of its grid-tied energy, providing the contractual evidence needed for corporate sustainability reporting and net-zero claims.

What benefits does purchasing NZ-ECs provide to businesses beyond emissions reduction?

Purchasing NZ-ECs helps companies reach corporate sustainability goals and targets, which can be highlighted in stakeholder engagement reports and carbon disclosure assessments for investor-driven reporting frameworks. Demonstrating follow-through on net-zero commitments strengthens a company's market position and economic performance by differentiating it from peers, supporting recruitment, customer loyalty and investor confidence in the organisation's environmental credibility.

How does Northmore Gordon tailor its NZECS support for clients?

We strive to understand a company's corporate identity in order to develop an energy certificate procurement strategy that aligns with the business's values and objectives. This tailored approach gives companies confidence to commit to more ambitious clean energy initiatives such as RE100 membership, ensuring that the certificate sourcing strategy reflects both our sustainability priorities and its commercial requirements.

What role does Northmore Gordon's experience in energy management play in its NZECS Participant role?

Our core expertise in energy performance, carbon management and environmental certificates for industrial businesses and the built environment translates into practical support for NZECS engagements. This background allows the firm to help clients understand their baseline energy consumption, identify opportunities to reduce demand alongside certificate procurement, and integrate renewable electricity claims into broader carbon advisory services and net-zero transition strategies.

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