In 2021, Aotearoa New Zealand introduced critical reforms to its Emissions Trading Scheme (ETS) to help achieve domestic and international climate goals. Central to this effort was the creation of a digital auction system to allocate New Zealand Units (NZUs) – carbon credits businesses purchase to offset emissions.

Ackama was selected to collaborate with NZX, the country’s Stock Exchange, to design and implement the Managed Auction Service. The project’s success hinged on its ability to meet ambitious deadlines, integrate with existing systems, and respond to evolving legislation.

As Hon. James Shaw, Minister for Climate Change, remarked: “It’s a critical part of having a transparent and effective way of reducing New Zealand’s greenhouse gas emissions.”

The ETS auction platform has transformed New Zealand’s approach to emissions reduction. By introducing a cap-and-trade mechanism, the government created a system where the price of emissions directly influences business practices.

On the day of the first auction in March 2021, 4.75 million units were sold, generating $171 million in trades. Since then, over $3 billion has been processed, creating opportunities for funding renewable energy projects and driving investment in sustainable practices.

“(the platform is) robust, secure and functional – and that’s really important for us and our users.” noted Shane Sinnan, Head of Energy Markets at NZX. 

Businesses now have a tangible incentive to reduce emissions, with many opting for greener operations to lower costs.

This shift has also catalysed the development of a mature futures market for carbon trading, enabling long-term planning and financial services built around climate goals.

Ackama worked closely with NZX and the Ministry for the Environment to bring the platform to life. From the outset, the team prioritised collaboration, spending five weeks with stakeholders to define the solution. The ETS auction platform was developed using Ruby on Rails, deployed on AWS to support scalability and secure operations. The implementation process leveraged Infrastructure as Code, enabling repeatable, auditable deployments across all components, from databases to load balancers. Integrations with RealMe for identity verification and KYC providers streamlined onboarding, creating a smooth experience for participants. Despite tight deadlines and evolving legislative requirements, the platform was delivered within eight months through an agile development approach.

“After the first auction there was a big sense of relief, clients, participants and we were happy and it was a great success all round. We were extremely grateful that we selected and worked with the right partners throughout this project.” Shane Dinnan Head of Energy Markets, NZX shared.

The ETS platform is more than a technical achievement, it represents a significant step forward in New Zealand’s climate response. By creating a transparent and accountable trading system, the platform supports the nation’s journey to a low emissions future.

“Businesses are looking to change the amount of pollution output to the atmosphere in the first place.” said Shaw. By linking emissions costs to real-world investments in renewable energy, the platform has a direct impact on reducing carbon emissions and supporting growth of the green movement.

For Ackama, this project aligns deeply with its commitment to creating impactful technology, and with each auction, the ETS platform continues to fuel progress toward a sustainable future.