Carbon potential huge, says multi-million $ seller
Carbon potential huge, says multi-million dollar seller
New Zealander foresters have just made the country's first major sale of local carbon credits into the European market.
Carbon market specialist information service Carbon News reports that the man behind a multi-million dollar sale says that carbon is potentially a major export and could make up to 80 per cent of forestry company revenue.
Ernslaw One has just sold 520,000 tonnes of New Zealand AAUs to a European buyer. The sale was handled by Hamilton-based Carbon Market Solutions, Carbon News (http://www.carbonnews.co.nz/) reports.
Neither company will give details about the price or buyer, but Carbon News understands that the units sold at around 10 euros, making the deal worth more than $11 million.
Because AAUs are not allowed into the European emissions trading scheme, it is likely that the units were sold to a European government which will use them to meet its country obligations under the Kyoto Protocol.
The deal – the first into Europe - is being hailed as a breakthrough because it recognises the carbon sequestering value of New Zealand’s plantation forests.
Ernslaw One managing director Thomas Song told Carbon News that the deal proves the viability of carbon as an export for New Zealand forest owners – if the government provides certainty around the ETS.