Key carbon forestry issues to be discussed in August eventFriday 26 Jul 2024
Within the programme, the panel session is one of the highlights of the annual investor event. Carbon investors are in the market for the long haul, so they seek certainty for their investments. Here’s what the players and analysts are saying: Carbon Match: “The Government has until the end of September to respond whether it thinks that the Commission recommendations should become regulations, or to come up with an alternative set of settings. And whilst we let the ETS do the heavy lifting, work is being done on the second Emissions Reductions Plan, the detail of which might yet improve market sentiment over the back end of the year - let's see.” Climate Forestry Association: “At Fieldays in June, both Forestry Minister Todd McClay and Climate Change Minister Simon Watts restated the Government’s commitment to climate action and recognised that a strong and stable ETS is our most effective tool for achieving our climate targets,” says Andrew Cushen, adding, “It is widely recognised that the market is currently significantly undervalued. Consistent policy settings and a long-term commitment to stability – like that signalled by the Government – are needed to bring back confidence in the sector and certainty in the market.” Mr Cushen said despite the Government’s signals, it could reinforce the recent assurances by clearing up some areas that have created confusion in the market, saying “The suggestion of a lowering price floor in the latest Ministry for the Environment consultation as presented without any obvious rationale, was not at all helpful for the market and the broader sector,” Looking to other key matters in relation to NZUs, the government accounts benefit from NZU sales. They rank second (alongside ACC levies) behind the tax take. In 2022 the ETS generated almost $2 billion for the Government. But right now the secondary market price is lower than auction pricing. A number of scenarios are still to play out between now and September's auction. Carbon Forestry 2024 runs on 20-21 August 2024 in Rotorua, New Zealand. Attendees are encouraged to book early, as the 2022 and 2023 events sold out, and early bird ends Friday 26 July. For more details, visit the event website. Source: Innovatek  | ||
Copyright 2004-2024 © Innovatek Ltd. All rights reserved. |
