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


Big emitters chasing cheap foreign carbon units: MfE data

ETS figures show big emitters chasing cheap foreign carbon units

Aug. 3 (BusinessDesk) - New Zealand's major emitters of greenhouse gases took advantage of the plummeting global price of carbon to offset their emissions in 2011, figures from the Ministry for the Environment show.

The report is the first to cover 12 months of the operation of the ETS and records the total number of carbon emissions units purchased and surrendered to the government to equate with their obligations to either reduce or offset their emissions under the ETS.

Electricity companies, major gas users and transport fuels are covered by the ETS, although they are only required to account for one in every two tonnes of carbon emitted, and are not required to pay above $25 per tonne of carbon.

However, international prices fell to as low as $8 a tonne by the last year, and have been even lower during 2012, as a glut of European carbon credits floods the fledgling global market.

As a result, some 73 percent of all units surrendered in 2011 came from offshore sources and the 2.1 million forestry-based New Zealand Units surrendered for the 12 month period was less than half the 5.3 million units surrendered in 2010, when the scheme had only run for six months.

Likewise, NZU's derived from other than forestry for the year totalled 2.3 million, compared with 2.6 million in the six month period a year earlier.

By comparison, surrenders of Certified Emission Reduction units (CER's), derived from foreign carbon offset programmes, clocked in at 4.2 million, compared with just 133,150 a year earlier. Of these, 1.2 million units related to industrial gases, some of which were removed from the ETS in December.

Some 4.3 million units of Emission Reduction Units, another form of foreign carbon credit, were surrendered, up from none the year before, and some 3.2 million Removal Units - a foreign credit not available in 2010 - were also surrendered.

European carbon prices remain at historic lows, despite a plan announced late July by the European Union that is intended to bolster the market, and saw NZU prices fall as low as $4.55 per tonne of carbon earlier this week, and close the week close to $5 a tonne.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news