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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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