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

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Sci-Tech
Search Scoop  
 
 
Powered by Vodafone
NZ independent news