Environmental services company CO2 Group Ltd announced it will expand its operations into New Zealand in June of this year.

For its first overseas venture, CO2 Group Ltd formed a partnership with M?ori commercial development company Tukia Group, and New Zealand based investment and advisory firm Carbon & Energy Partners (CEP).

Under the planned expansion CO2 will hold a 45 per cent stake in new company CO2 New Zealand, with Tukia and CEP holding the remaining 55 per cent.

CO2 Group's expansion into New Zealand follows the passing of the New Zealand Emissions Trading Scheme (NZETS) which will be introduced from July 1, 2010.

"The passing of the NZ ETS means that CO2 New Zealand will now be able to generate carbon credits in the form of NZUs and Assigned Amount Units (AAUs). These can be sold in both the NZ and international carbon markets. We will invite investment from our partners and capital markets into carbon projects here in NZ. These projects will be developed on behalf of investors who require significant volumes of carbon credits in order to meet their compliance obligations," said Tukia Group chairman Lennie Johnson.

CO2 Group said its expansion outside Australia allows it to extend its commercial footprint into international carbon markets.

"This is an important step for CO2 Group; it comes at the end of a long review process by our Company of suitable growth opportunities," said CO2 Group chief executive Andrew Grant.

The company said a key feature of the NZETS is the ability to generate and sell carbon credits into the international carbon market which in 2009 had a market value of US$143 billion ($A168.55 billion).