EPA Report confirms Foreign Units Swamped NZ ETS in 2012
Latest EPA Report confirms Foreign Units Swamped NZ ETS in 2011; Use of forest NZUs drops significantly
Press Release: Permanent Forests International Limited
This afternoon the EPA released ‘the NZ ETS 2011- Facts and Figures’ report which shows what we already knew. That foreign carbon was the credit of choice for emitters in 2011.
International credits comprised a whopping 71% of all units surrendered for compliance within the NZ ETS in 2011, up from 1.6% the previous year. In contrast NZUs from p89 forests only accounted for 13% of units surrendered down from 64% in 2010. NZ AAUs and other NZUs remained relatively unchanged.
Worryingly, the cheapest international units were used in abundance. ERUs and RMUs trade at a discount to CERs and accounted for over 44% of all units retired.
The NZ ETS is the only trading scheme in the world to accept RMUs and last year around 3.1 million RMUs were surrendered for compliance. So far only 3.9 million RMUs have been issued by Hungary and NZ looks to be the home for most of them.
In our view the outlook for domestic carbon market will worsen unless the NZ Government intervenes to limit international.
To read the full EPA report click here