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

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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