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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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