Coastal marine habitats (i.e. mangroves, saltmarshes, and seagrasses) have a high capacity for carbon sequestration (termed “blue carbon”) and the potential to reduce the effects of greenhouse gas emissions. However, blue carbon habitats have historically decreased as a consequence of land conversion, coastal development, and pollution and are under threat in many locations. Restoration of these habitats can reverse historic losses and generate carbon credits through increased carbon sequestration. With a long coastline, we hypothesized that there would be significant opportunities for coastal blue carbon in Aotearoa New Zealand. Results revealed Aotearoa estuaries and coastal areas contain approximately 20,932 ha of saltmarsh, 30,533 ha of mangrove, and 61,340 ha of seagrass, estimated to sequester a total of approximately 57,800 tC/year. A further 87,861 ha of land was estimated to be potentially suitable for blue carbon projects via tidal restoration, of which 56,482 ha was suitable for saltmarsh restoration (equivalent to 60,435 tC yr if restored), 17,291 ha was suitable for mangroves (26,455 tC/year), and 14,087 ha was suitable for seagrass (4790 tC/year). Both existing extent and restoration opportunity varied throughout the country, with greater opportunity in some regions than others. Nationwide, the total sequestration potential for blue carbon restoration was estimated at 91,680 tC yr−1 if all potential areas were restored. Carbon credits generated by blue carbon projects could be traded on a carbon market in Aotearoa, generate revenue for landowners, provide an additional pathway to meet domestic and international climate change targets, and result in a diversity of other ecological, social, and cultural co‐benefits from coastal restoration.