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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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