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Stories in New Zealand

The Untapped Power of Peatlands

These ancient wetlands play an important role in fighting climate change, providing homes and food for unique wildlife, and protecting communities.

May 29, 2025

Landscape view looking across a vast peatland, with a mountain in the far distance.
Peatlands Peatlands in the central plateau of New Zealand's North Island. © Rachel Hall/TNC

Peatlands are ancient wetlands made up of dead and very slowly decaying plants. These waterlogged soils have slowly built up huge carbon stores—millimetre by millimetre—over thousands of years.

Despite covering only 3% of the planet, peatlands can punch far above their weight. Globally, they store twice the amount of carbon of forests, a third of soil carbon and 10% of fresh water, as well as providing habitats for some of our most unique animals and plants.

TNC Aotearoa New Zealand (TNC NZ) is working to support and enable peatland restoration at scale here in Aotearoa, where we have distinctive types of peatlands with unique ecosystems and the habitat for species that they provide.

A hand holds a fragment of moss next to a ruler.
Benefits of Peatlands Closeup of sphagnum moss on a peatland, on the central plateau of New Zealand's North Island. © Rachel Hall/TNC

The Challenge

Ninety percent of Aotearoa New Zealand’s wetlands, including more than 200,000 hectares of peatlands, have been drained for farming. These drained peatlands continue to release their immense carbon stores into the atmosphere, emitting the equivalent of about 6.5% of New Zealand’s net greenhouse gas emissions every year. This is comparable to the country’s total emissions from industrial processes and product use, despite peatlands covering less than 1% of its land area.

Degraded peatlands can no longer fulfill their incredible functions including storing water, reducing flooding and keeping carbon locked up in soil and out of the atmosphere. Degraded peatlands also pose a huge fire risk to local communities, and this risk is increasing as the climate changes further. Even protected areas of remaining peatlands are under increasing threat from drainage, fire, pollution and pests, all made worse with climate change.

Progress

An exploratory TNC NZ project is investigating how to fund and incentivise peatland restoration in New Zealand and reduce the barriers to action.

Our project includes working on financing mechanisms to deliver sustainable, equitable outcomes for people, climate & nature from peatland restoration. Despite the potential benefits, there are few incentives for landowners to restore their peatlands & major barriers for implementing projects.

Abbie Reynolds Country Director

We are currently exploring how we might be able to use carbon markets, alongside other forms of funding, to encourage peatland restoration that benefits nature, climate and communities.

This could mean landowners are paid to keep carbon locked away by restoring their peatlands, preventing them from emitting greenhouse gases.

TNC NZ’s approach embraces working with the private sector, iwi/hapū (Māori tribes and sub-tribes), private landowners, universities and research institutes, NGOs, local government and central government, as we explore this kaupapa (mission).

Rabia Sheikh kneels in a peatland and holds a backpack near other research equipment as she smiles for the camera.
Core Sampling Rabia Sheikh, research student, taking a core sample from the Greenswamp Bog, Rēkohu/Wharekauri Chatham Islands. © Courtesy of Rabia Sheikh

Peatland Research

TNC NZ supported Rabia Sheikh to do some initial research in the Rēkohu/Wharekauri Chatham Islands region calculating and identifying how much carbon has accumulated there. This research supports work developing verified carbon credits that could be sold to provide an alternative source of revenue to landowners of restoration sites.

Read the full story.

Verified Peatland Carbon Credits

TNC NZ is already leading work to develop a carbon credits market for coastal wetland (blue carbon) restoration in New Zealand.

Using lessons learned from this programme and working with a global network of peat teams and local collaborators, our goal is to support and enable a robust carbon credit methodology to be implemented here in New Zealand to support peatland restoration and generate verified peatlands (teal) carbon credits that deliver high-integrity and genuinely additional benefits for our climate, nature and communities.

 

Policy and Engagement

We will also work alongside our global colleagues, central and local government on putting in place the policy, regulatory and legal settings needed to enable carbon markets for peatlands in New Zealand. Another key aspiration is to build an expert and engaged community of central and local governments, local communities, iwi and hapū, government agencies, researchers and other stakeholders.

 

Long-term Benefits

  • Reduced greenhouse gas emissions
  • Rare habitat restoration and threatened species recovery
  • Adaptation to climate change
  • An innovative sustainable financing system
  • Building confidence about the potential for a New Zealand peatlands carbon market
Cover of the peatlands restoration fact sheet.
Find Out More

Download the factsheet.

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