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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news