Video | Business Headlines | Internet | Science | Scientific Ethics | Technology | Search

 


New Zealand’s Carbon Market Has Almost Collapsed

Media release
Carbon News

15 February 2013

New Zealand’s Carbon Market Has Almost Collapsed

Prices for spot NZUs (NZ emission units) set a new low this week, breaking the $2 floor for the first time, the country's specialist emissions market intelligence service, Carbon News, reports today..
Some international units are trading as low as 15 cents.

Sentiments expressed by Carbon Match founder Lizzie Chambers in a column for Carbon News this week – in which she describes the New Zealand Emissions Trading Scheme as “suffering a lack of credibility in the eyes of landowners” and predicts a price race to the bottom – are echoed privately by others in the market.

The planting of forest is a critical part of the Government’s plan to reduce New Zealand’s overall greenhouse gas emissions. The ETS is supposed to encourage this, by providing foresters with an extra income stream.
But rock-bottom prices (from more than $20 for a spot NZU in early 2011) has seen major forest owners, such as Ernslaw One’s Thomas Song, who made millions for his company in the first years of the scheme, have backed away from it.
Others have implored Prime Minister John Key to intervene to stop the flow of cheap carbon into the country.

Last month, Carbon News reported that foresters are now leaving the scheme. The Government has instructed officials to find other ways of encouraging afforestation, such as a return to the Afforestation Grants Scheme.

New Zealand’s decision not to sign up to the second commitment period of the Kyoto Protocol has caused further market uncertainty.

Climate Change Minister Tim Groser has been quite clear that New Zealand will continue to have a price on carbon outside the Kyoto Agreement, but the COP 18 meeting in Doha voted to exclude this country (along with Japan and Canada) from international credits generated under the second commitment period.

While officials are still calculating the ramifications of New Zealand’s withdrawal from the agreement, one effect is likely to be the disappearance of a formerly lucrative market for NZUs (converted to AAUs) – sale to European governments.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Sci-Tech
Search Scoop  
 
 
Powered by Vodafone
NZ independent news