WELLINGTON, July 3 (Reuters) - A New Zealand-based carbon trading market said on Thursday it was in a position to become Asia's leading market for trading in greenhouse gas emissions when it starts up in early 2009 after gaining an international accreditation.

The market, known as TZ1 and owned by New Zealand stock exchange operator NZX Ltd <NZX.NZ>, said it had become an approved registry for the voluntary carbon standard (VCS), which is set by international environmental and economic bodies.

VCS certification sets how carbon emissions are measured and converted into tradeable units.

As one of only four organisations worldwide to be a registry for the VCS, TZ1 was closer to its goal of becoming a global player, Chief Executive Mark Franklin said in a statement.

Two of the other VCS registeries are in the United States, and one is in Europe.

A carbon market allows countries or companies to buy and sell the rights to emit greenhouse gases. TZ1 will provide trading and settlement functions using NZX's infrastructure.

TZ1, which aims to begin trading in emissions from early 2009, is looking to use its position in New Zealand's time zone to provide a market when European and American markets would be closed. The name TZ1 refers to New Zealand's time zone.

"It doesn't come down to us being the New Zealand player, it's what role we can play globally, from a trading perspective," Franklin said.

The New Zealand government is looking to implement its own national emissions trading scheme (ETS) to help meet the country's commitments to cut greenhouse gas emissions under the Kyoto protocol. However, legislation to set up the scheme has stalled as the Labour-led government negotiates with minor parties to gain the necessary political support.

The cap-and-trade scheme will work by restricting the amount of carbon companies can emit. Those using less than their quota can sell the excess to those who require more.

Franklin said TZ1 would look to provide a market for New Zealand companies to buy and sell carbon under the ETS framework. It will also design carbon trading products to serve the agriculture and forestry industries, significant industries in the New Zealand economy. (Reporting by Adrian Bathgate; Editing by James Thornhill)

AlertNet news is provided by