Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ now a joke in Europe, says carbon trader


November 21, 2008

Media release

New Zealand now a joke in Europe, says carbon trader

A leading New Zealand carbon trader says international markets can no longer take New Zealand seriously, carbon trading has come to a standstill and experts are warning business not to think carbon pricing has gone away.

Specialist news service Carbon News (www.carbonnews.co.nz) this morning reports broker Nigel Brunel, of OMF Financial, as saying New Zealand is “a bit of a joke in Europe at the moment” following the National-Act agreement to suspend the emissions trading scheme.

Carbon News quotes Brunel as saying major players in the European market – which was last year worth $US55 billion – have been seriously interested in using the emerging New Zealand market to complement the European market.

“We are the antipodes of Europe,” Brunel said. “Their time zone is the exact opposite of ours, and there’s a real opportunity to have a 24-hour carbon market that starts in Europe and when they go into their night we take over.

“There is real interest in that because carbon is such an important market over there. Some very big players were very keen to establish a market down here because of the ability to then create a 24-hour market.

“This was New Zealand’s opportunity to reinvent its financial markets by being the Asian centre of the carbon trade.”

But this week’s announcement that the incoming government will put the ETS on hold pending a review that will go as far as considering a carbon tax instead of an ETS and will re-examine the validity of the science behind climate change, has jeopardised everything, Brunel says.

“We have just fallen off the radar in Europe,” he said. “They are saying ‘all you do is talk. You’ve been talking since 1992. You are all talk and no action. You maintain that you are so clean and green and try to be leaders and all you do is nothing. You make a decision and then you change your minds. How can we do business with people like that? We can’t take your seriously’.”

Brunel says that trading in New Zealand has ground to a halt in the wake of the announcement that the scheme is being delayed.

Meantime, Carbon news reports prominent law firm Buddle Findlay as saying New Zealanders shouldn’t buy or sell carbon credits until the Government’s plans for the emissions trading scheme are clear.

Buddle Findlay says that the new government’s decision to delay the ETS has brought the carbon market to a standstill, but is warning clients not to think the whole issue has gone away.

“People should hold-off sealing any deals until more information is available about the delay and the review,” commercial law partner Steve Nightingale told Carbon News.

“More detail should be available within a couple of weeks, because Parliament is being recalled on December 8 and legislation to delay the scheme will need to be introduced shortly after that.”

But he warns that the scope of the delay might be more limited that it appeared at first, and business should not be scuppering their carbon plans.

“In the case of forestry, for instance, that sector already has rights and obligations accruing from January 1 this year, and there are very strong policy reasons not to delay the NZETS' implementation insofar as forestry is concerned,” he said.

Meantime, PricewaterhouseCoopers partner and sustainability specialist Julia Hoare says New Zealand business will have to account for its carbon – regardless of whether it is through an emissions trading scheme or a carbon tax.

“The sooner New Zealand businesses understand what a price on carbon means – whether it’s delivered through an ETS or through a carbon tax – the better,” Hoare told Carbon News. “That’s clearly the message at the moment. Whatever the politics and mechanics of it might be, we are moving into a carbon-constrained world, and business has to understand that.”

Hoare is advising clients not to be lulled into a false sense of security by the fact that the new government has announced it will delay the scheme.


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news